STOCKHOLM, Sweden, Nov. 29, 2002 (PRIMEZONE) -- The Swedish subsidiary of Song Networks Holding AB (Stockholm:SONW) (Other OTC:SONWF), Song Networks Svenska AB, has signed a contract with Servera R&S AB for the supply of data communication and telecommunication. The contract covers a data-network solution for all of Servera's 16 offices. Furthermore, 11 of the offices are being connected to Song Network's fixed-telephony network. It is a 3-year contract with a value for Song Networks of approximately SEK 10.8 million.
Servera R&S AB, a wholly-owned subsidiary within the Axel Johnson group, is Sweden's biggest wholesaler in the restaurant and catering industry, with an annual turnover of SEK 4 billion. The company's employees are divided up amongst 16 offices, which are connected to the company's central IT system. The IT solution provides major operational advantages with regard to equipment and staff. At the same time, all the offices' constant need to access information increases the demands on the systems' availability and the network's capacity.
With its IP VPN service, Song Networks is supplying a data-network solution which links Servera's 16 offices and connects them to the company's central IT system. The capacity of the network is between 2 and 100 Mbit/s. To guarantee availability between the offices and the central systems, the equipment and connections are duplicated. This means the information has an alternative transportation route in the event of any operational interruption in the main connection.
"Now that capacity is no longer a restriction we have every opportunity of developing high-bandwidth applications which rationalise work for our employees and improve service for our customers. It may, for example, be a matter of e-training measures with moving pictures and sound. Furthermore, our employees always have access to all systems thanks to the duplicated connections on the network, as compared with the previous situation, when the dial-up backup connection was unable to handle all systems because of lack of capacity," said Goran Matz, Servera's IT director.
Servera is also connecting its telephone switchboards to Song Networks' network for 11 of its offices for internal calls, which will be free of charge. For external calls Servera is for the time being keeping its present operator. This means that telephony also has duplicated connections, guaranteeing availability in the event of any operational interruption to one of the connections.
"We are proud of Servera's trust in us. In this collaboration we will be building a high-capacity solution, as well as supplying duplicated connections to further increase the availability of Song's network," said Mats Almgren, Song Networks' sales director.
For further information, please contact:
Song Networks Svenska AB Song Networks Svenska AB Mats Almgren, sales director Tobias Gyhlenius, press service Tel.: +46 (0)8-5631 02 40 Tel.: +46 (0)8-5631 05 27 Mobile: +46 (0)701-810 240 Mobile: +46 (0)701-810 527 E-mail: E-mail: mats.almgren@songnetworks.se tobias.gyhlenius@songnetworks.se
About Song Networks, formerly Tele1 Europe, (Stockholm:SONW) Song Networks is a data and telecommunications operator with activities in Sweden, Finland, Norway and Denmark. The Company's business concept is to offer the best broadband solution for data communication, internet and voice to businesses in the Nordic region. This means that Song Networks supplies communication solutions that are attractively customized for each corporate customer. Song Networks is currently the only pan Nordic operator investing in local access networks with broadband capacity. The Company has built local access networks in the largest cities in the Nordic region. The access networks, which are linked by a long-distance network is one of the fastest data and internet super-highways in Europe, with an initial capacity for customers of up to one gigabit. The Company was founded in 1995 in Sweden and has approximately 850 employees. The head office is located in Stockholm and there are an additional 34 offices located in the Nordic region. For further information, please visit 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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