04/05/2001

Net Insight to issue new shares for SEK 162 million together with subscription options which, if fully utilized, will give a further SEK 121 million

The board of Net Insight AB (publ) decided today to make a new share issue with preferential rights for all the company's shareholders, provided it is approved by an Extraordinary General Meeting (EGM).

The new shares will be issued at a subscription rate of SEK 10 per share. Five old shares, regardless of share type, entitle the holder to subscribe to two new B-shares. The share issue will provide up to SEK 162 million in the event of subscription of the maximum of 16,205,261 new B-shares increasing the share capital by up to SEK 648,000. The record day for determining which shareholders are entitled to participate in this new share issue is 1 June 2001.

The company is also taking out a subordinated loan for a nominal value not exceeding SEK 1000 by issuing a promissory note for a maximum of 8,102,631 separable options for subscription to B-shares. This is also subject to approval by an EGM. Shareholders who utilise the right to subscribe to new B-shares in the preferential rights issue will receive, in addition to these shares, one further option for every two B-shares subscribed to. Subscription to new shares on the basis of these options will be possible from 1 June 2002 to 30 June 2002, inclusive, at SEK 15 per share. In the event of a maximum subscription, the share capital will be increased by SEK 324,000.

The board has also decided to call an EGM on 28 May 2001.

In practice, this offer means that a preferential rights issue this year is combined with an option to subscribe next year to shares at a price that has already been set to SEK 15.

This capital infusion is to be used for continued commercialisation of the company's activities and products. This will necessitate increased financing of working capital once sales take off.

"We believe that an offer which combines an actual share issue with an option will be an attractive investment for our shareholders, while also satisfying Net Insight's financing requirements,' says Bengt Olsson, CEO of Net Insight.