SOLNA, Sweden, April 3, 2003 (PRIMEZONE) -- At its meeting today, the Board of Directors of LGP Telecom Holding AB decided to propose that its Annual General Meeting on May 6, 2003, approve the transfer of all shares in the Swedish subsidiary Hamex Hardmetallverktyg AB ("Hamex") and all participations in the Austrian subsidiary Bertmann GmbH ("Bertmann") to Mikael Gottschlich, Board member and shareholder, as well as former President of LGP Telecom Holding AB. The purchase price for Hamex amounts to MSEK 20 and MSEK 18 for Bertmann, based on an independent fairness opinion conducted by PricewaterhouseCoopers ("PwC"). The Board's complete proposal for a decision on these transfers, the Board's report on this and the fairness opinion prepared by PwC will be available on the company's website, www.lgp.se, as of April 17, 2003, and will be sent to shareholders who so request.
The reason for the transfer of both subsidiaries is the streamlining of the Group and a clearer focus on telecom. Discussion of this transfer was initiated in summer 2002. In total, the transfers will generate a capital loss in the Group of approximately MSEK 33. The purchase price for the shares and participations transferred will be paid in cash and the transfers will generate a positive liquidity effect of about MSEK 38, as well as a reduction in the Group's interest-bearing liabilities of approximately MSEK 10. This will have a positive impact of MSEK 24 on the Parent Company's earnings
It is estimated that the transfers will have a marginal positive impact on the Group's future earnings. The Group's annual sales are expected to decline by about MSEK 78.
Solna, April 3, 2003 LGP Telecom Holding AB Board of Directors1
1) Mikael Gottschlich did not participate in the decisions described
above.
For further information, please contact: Bengt Broman, CEO, tel: +46 (0)705 70 10 30, e-mail: bengt.broman@lgp.se Claes Silfverstolpe, CFO, tel: +46 (0)8 50 74 81 03, e-mail: claes.silfverstolpe@lgp.se
The LGP Group comprises two business areas: Telecom and Contract Manufacturing. The Telecom business area, which comprises LGP and Allgon, develops, manufactures and markets telecom products to improve radio coverage, capacity and data speed in mobile communications networks throughout the world. The product range comprises antenna systems, coverage solutions, base-station systems and radio-link systems. Through the Contract Manufacturing business area, the LGP Group is a leading contract manufacturer of advanced industrial components in its niche. The Group has approximately 1,500 employees in 13 countries and annual sales of approximately SEK 2.5 billion. LGP is listed on the Attract 40 list of Stockholmsborsen (Stockholm Exchange).
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