Utfors Implements a Cost-Savings Program

Press Release: Utfors Implements a Cost-Savings Program Utfors completed its important network structure phase at the end of 2000, and thereby entered a new phase of the Company's development where focus has been put on sales and the supply of the Company's broadband- based communications services. Sales have since then developed positively and are following our adopted plan. However, factors in the surrounding world such as the downturn of the general economic climate and the increased uncertainty of the market, as well as the doubtful debt due to Utfors by Pangea (as reported in our press release of 27 September), have led Utfors to believe that it is necessary to implement a certain number of savings and rationalization measures. Our action program is expected to enable savings of approximately MSEK 50 - 60 during the period up to the end of 2002, including expected reorganization costs. The central parts of the program are as follows: - A suggested decrease in number of employees by approximately 35 people. All parts of the Company will be affected, although sales, delivery, operations and network monitoring will be affected to a lesser degree. - A suggested decrease in salaries by between four and eight percent for all employees during the period November 2001 - December 2002. It is also suggested that the salaries of group management be decreased by eight percent, and for the remuneration of all board members to be decreased. A profit goal will be set and a profit-sharing program will be adopted. If the profit goal is achieved, the saved amounts will be repaid. - Other costs (consultants, travel, etc) are to be decreased. Utfors works continuously with the Company's long-term financing and carefully follows the development of the market. As for the amount due to Utfors by Pangea, we are currently negotiating with the administrator appointed to restructure Pangea. Utfors cannot for the moment exclude the possibility that a further contribution to the Company's long-term financing may be needed, in addition to the amount that the above- described action program is expected to provide. Press information Jan Werne, President. Ph: +46-8 5270 2540 / Mobile: +46-8 708 48 2540; e- mail: jan.werne@utfors.se Markus Boberg, Vice President, Corporate Communications. Ph: +46-8 5270 3016 / Mobile: +46-708 48 3016; e-mail: markus.boberg@utfors.se Utfors is the natural choice as Nordic partner for high quality fixed and mobile broadband, Internet and telephony services. Utfors operates a network at the cutting edge of global technology that provides unique cost advantages. Within this network, Utfors offers companies, public authorities and private individuals revolutionary services that create new possibilities for progress and creativity. Utfors is currently linking together the 75 largest cities of the Nordic Region with a 7100 km long broadband network. Utfors employs about 360 people in Sweden, Norway and Finland. Utfors' principal owners are Norsk Vekst and Litorina Kapital, as well as a number of institutional investors. More information is available at www.utfors.com. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/10/15/20011015BIT00580/bit0001.doc http://www.waymaker.net/bitonline/2001/10/15/20011015BIT00580/bit0001.pdf