Song Networks Holding AB announces first quarter 2003

STOCKHOLM, Sweden, May 07, 2003 (PRIMEZONE) -- Song Networks Holding AB (Other OTC:SONWF) (Stockholm:SONW):

(1) Adjusted EBITDA

(2) for the quarter was SEK 14 million, compared with SEK -47 million for the first quarter of 2002. This result includes Arrowhead from January 10, 2003.

Revenues for the first quarter of 2003 were SEK 579 million compared to SEK 590 million the first quarter of 2002. Revenues from high margin services as data and Internet increased with more than 13% compared to the same period the previous year, but low margin services as voice and other decreased during the period.

The number of corporate customers was at the end of the period 22,624, an increase of 1,438 compared to 21,186 the first quarter of 2002.

Directly connected offices/ sites (3) increased with 4,188 to 15,809 during the year from 11,621 the first quarter of 2002. The number of IP VPN sites at the end of the period was approximately 4,500, which represents an increase of 2,200 from the first quarter of 2002.

Adjusted cost for sales, general and administration (SG&A) (4) was SEK 233 million, or 40% of revenues, compared to SEK 284 million or 48% the first quarter of 2002.

Net result for the quarter was SEK -38 million that can be compared to SEK -336 million the corresponding period the previous year.

Cash and cash equivalents, including restricted cash, at the end of the period was SEK 551 million. Financial net cash (5) was SEK 608 million.

Subsequent events:

Cash issuances in relation to Song Networks' financial restructuring are completed, and the last conversion period to convert bonds into shares ended May 2. This means that the financial restructuring is completed and Song is thus virtually debt free.

At the Annual General Meeting on April 9, 2003, a new board of directors was elected and Roger Holtback was appointed chairman of the board.

Corporate information:

Principal Executive Office: Song Networks Holding AB Box 712 SE-169 27 Solna Sweden

Visiting adress: Gustav III:s Boulevard 18 Tel: +46 8 5631 00 00 Fax: +46 8 5631 01 01 Web site: www.songnetworks.net


Enquiries:
Tomas Franzen, CEO Tel: +46 8 5631 01 11 E-mail: tomas.franzen@songnetworks.net

(1) From Q4 2002 Song Networks does not report according to US GAAP. All figures are reported according to Swedish GAAP. Song Networks defines EBITDA as earnings (loss) before interest, income taxes, depreciation and amortization. "Adjusted" EBITDA is defined as EBITDA before provisions for social security fees and compensation expense related to employee stock options, non-recurring restructuring charges, foreign exchange gains and losses, and all other reported as Other income/ expense. A "site" is defined as a customer connection/ office "Adjusted" SG&A is defined as SG&A before provisions for social security fees and compensation expense related to employee stock options and restructuring charges. Financial net debt (-)/Net cash (+) is defined as the sum of interest bearing liabilities less liquid assets including unutilized secured bank facility.

Song Networks Holding AB announces first quarter 2003 result

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