STOCKHOLM, Sweden, Jan. 14, 2004 (PRIMEZONE) -- Song Networks Holding AB (Stockholmsborsen:SONW) announces today that the Norwegian subsidiary is to supply a joint computer network to Porsgrunn, Skien and Bamble municipalities. The contract is for four years, with the option of a one year extension, and has a value of around NOK 15-17 million.
The computer network supplied by Song Networks will connect 180 municipal premises together in one network. The interlinked administration centres of the three municipalities will receive 100 Mbit/s connections between the municipalities and the joint Internet access. The network is supplied with speeds from 2 to 100 Mbit/s. The considerable increase in bandwidth internally within each municipality provides capacity for future requirements and the development of a technical infrastructure, which will include other fibre connections to a number of schools.
The development project is partially supported by Hoeykom, a government administration project that has provided funds to improve the infrastructure to and computer equipment in schools. Schools have in addition their own student network, which is not a part of the municipality joint solution. Porsgrunn, Bamble and Skien have a long tradition in inter-municipality cooperation. They try, wherever possible, to select similar solutions.
The agreement with the municipalities was won in strong competition with five other players.
"Song Networks was the offer provider that best met our allocation criteria. The company provided us with a good offer on both price and performance. In the selection of a new network supplier, it was also important to receive a good offer for the municipality and at the same time strengthen the cooperation we already have within Internet and telecommunications in our three municipalities", says purchasing manager Rune Hagoey in Bamble municipality.
Kommunenett Grenland will manage the operation of the solution. "We have had a cooperation within IT since 1996. We started at a small scale and have gradually cooperated on larger and larger projects, giving closer integration between the municipalities. The network we now will be acquiring is less vulnerable and increases and improves the options for remote operation of different parts of the system. This will allow us to make even better use of the leading edge competences in each municipality", says Dag Sagafos, manager of Kommunenett Grenland's steering group.
"We have experience with this type of solution from the project The Digital District Agder, where we brought together 18 municipalities and one county. This type of inter municipality cooperation is cost effective for the individual municipality. The computer network increases joint purchasing between them and makes it possible to take major steps within data communication which individual municipalities could not achieve alone. We understand the public sector's needs very well. Our strategy of providing the best price in relation to performance makes us a preferred cooperative partner for this type of organisation", says Ketil Kivedahl, managing director Song Networks AS.
For information, please contact: Song Networks AS The Municipality of Bamble Ketil Kivedahl Rune Hagoey Managing Director Purchasing Manager Tel: +47 21 50 24 50 Tel: +47 35 96 50 00 Mobil: +47 400 00 450 E-post: E-post: postmottak@bamble.kommune.no ketil.kivedahl@songnetworks.no
About Song Networks, (Stockholmsborsen: 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. The Company was founded in 1995 in Sweden and has approximately 830 employees. The head office is located in Stockholm and the Company has 21 offices located in the Nordic region. 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.
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