STOCKHOLM, Sweden, March 07, 2002 (PRIMEZONE) -- Song Networks Holding AB (Nasdaq:SONW) (Stockholm Stock Exchange:SONW) announces that the CEO, Ivar Stromberg, is resigning from the Company with effect from 31 March 2002 and will be replaced by Tomas Franzen, the CEO of AU-System AB, who will take up his position on 1 April 2002.
Ivar Stromberg is one of Song Networks' founders and has been the Company's CEO since the start of 1995. He will be replaced by Tomas Franzen, who is currently employed at AU-System AB, where he has been CEO since 1999. He was previously Director of Sales at ICL Data AB. He is also a board member at Allgon AB, BTS AB, ProAct AB and OEM International AB.
Following the change of CEO the Group's management group will consist of Thomas Franzen, Ari-Jussi Knaapila, Liia Nou and Tommy Ekstrom.
"Ivar Stromberg has done a fantastic job in building up Song Networks into the leading alternative broadband operator on the Nordic corporate market. The change of CEO is completely in accordance with Ivar Stromberg's own wishes and a logical consequence of Song Networks becoming a significant Nordic Group over the past six years," says Lars Windfeldt Song Networks' Chairman.
"The Board considers that in Tomas Franzen the Company has a very strong CEO. In the phase that Song Networks is at, we will ensure continued strong growth in combination with a strong focus on profitability, marginal development and cost control. Tomas Franzen has an impressive background from previous positions and has all the best conditions to further develop Song Networks' market position and the process towards achieving the Company's financial goals," he concludes.
"We have now found the right person to replace me. Having started and worked for over six years in what is today's Song Networks, I believe I have the right to step down. My timing has been totally governed by the fact that the right person to take over is now available," says Ivar Stromberg.
"It will be very exciting. I am convinced that the Company has significant potential. Song Networks is seeing excellent growth in its core activities with good, increasing margins. The completed network provides further opportunities to offer corporate customers in the Nordic region top quality services and security at competitive prices. I look forward to taking over at Song Networks," says Tomas Franzen.
About Song Networks, the former Tele1 Europe, (Nasdaq:SONW), (Stockholm Exchange:SONW)
Song Networks is a rapidly expanding data and telecommunications operator with activities in Sweden, Denmark, Finland and Norway. The Company provides broadband solutions for data, internet, hosting and voice, to businesses in the Nordic region. Song Networks is currently the only pan Nordic operator investing in local access networks with broadband capacity. The Company is constructing networks in the 80 largest cities in the Nordic region. The access networks, which are linked by a long-distance network, will be one of Europe's fastest data and internet super-highways with an initial capacity for customers of up to one gigabit. The Company was founded in 1995 in Sweden and has approximately 1,200 employees. The head office is in Stockholm and there are an additional 31 offices located in the Nordic region. For further information, please visit our website at www.songnetworks.net
Certain statements contained in this press release contain "forward- looking statements" within the meaning of the U.S. federal securities law. Such statements are based on the current expectations of the management of Song Networks Holding AB only, and performance is subject to risks, uncertainties and other factors that could cause actual results to differ materially from these statements. Such risks include, but are not limited to, adverse regulatory, technological or competitive developments; decline in demand for the Company's services or products; inability to timely develop, introduce and market new technologies, products and services; pricing pressures resulting from competition; unforeseen construction delays; and the inability to successfully manage systems failures or shutdowns and service interruptions or reduced services to customers. For a more detailed discussion of such risks and uncertainties affecting the Company, please refer to Song Networks Holding AB's reports that are filed from time to time with the U.S. Securities and Exchange Commission, including the Company's annual report on Form 20-F and reports on Form 6-K.
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