Tilgin raises SEK 72 million through rights issue

Tilgin raises SEK 72 million through rights issue 

Stockholm, May 6, 2008: The subscription period for Tilgin's rights issue of
shares and warrants has ended. The rights issue will raise SEK 72 million for
Tilgin before issue and underwriting costs. Upon full exercise of the warrants,
the company could raise a further SEK 67 million.

“The rights issue gives Tilgin the resources it needs to invest in development
and sales of our world-leading IP technology,” says Ola Berglund, Tilgin's CEO.
“In the first quarter Tilgin presented strong order intake and record gross
margins. Since then, the company has announced an initial order for the new Mood
400 product platform from a leading telecom operator in Southern Europe for
their IPTV launch.  This order has been won in co-operation with a global
systems integrator. Additionally, a larger order has been received for IP
residential gateways from a leading Nordic operator. Our leading products,
strong customer relationships and partners such as Ericsson and Nokia Siemens
will, together with this rights issue, enable Tilgin to return to growth and
profitability.”

Tilgin has now completed its rights issue of shares and warrants, raising a
total of SEK 72 million. The subscription period was March 31 - April 25, 2008.
At the end of the period SEK 57,906,654 had been subscribed for using
pre-emption rights and SEK 282,399 without pre-emption rights. The remaining
part, representing about SEK 14 million, will thus be subscribed for by a number
of underwriters based on separate underwriting agreements, as previously
announced.

The rights issue refers to the issue of Units consisting of shares and warrants.
Shareholders are entitled to subscribe for one unit consisting of three new
shares and two warrants of two different series for every three shares held. The
subscription price for a unit is SEK 9.75, representing a subscription price per
new share of SEK 3.25. The warrants, of which one series matures in 2009 with a
subscription price of SEK 4 and the other matures in 2010 with a subscription
price of SEK 5, have been issued at no cost. The rights issue will raise SEK 72
million for the company. Upon full exercise of the warrants, the company could
raise a further SEK 67 million.

Upon registration at the Swedish Companies Registration Office, the rights issue
will increase the number of shares in the company by 22,274,598 to 44,549,198.
The share capital will thus increase by SEK 22,274,598 to 44,549,198. Through
this 14,849,732 warrants have been issued.

Start of trading for the new issued shares and warrants at OMX Nordic Exchange
Stockholm is estimated to the week starting with 26 May 2008. Detailed terms and
conditions for the warrants are available on the company's website.

― End ― 

This press release has been reported to the Swedish Financial Supervisory
Authority subject to FFFS 2007:11. In its capacity as issuer, Tilgin AB is
releasing the information in this press release in accordance with the Swedish
Securities Exchange Act. The information was distributed to the media for
publication at 12.15 p.m on May 6th 2008. 

For further information: 
Katrin Buhre, IR & Communications Director, 
Phone: +46 8 572 386 86, E-mail: katrin.buhre@tilgin.com 

About Tilgin 
Tilgin designs and delivers operator managed intelligent service node products
and solutions that service-connect the broadband home. Supporting the full
convergence of voice, video and data, Tilgin takes a network systems approach to
customer premises equipment (CPE) that enables providers to offer a broad
portfolio of personalized and differentiated next-generation broadband services.
Tilgin's comprehensive product portfolio of Telco Home Gateways, Advanced IP
Media Terminals and Service Node Management solutions, offer service providers
unprecedented return on investment - delivering new service revenues with
substantial cost savings over the lifetime of the product. Tilgin was founded in
1997 under the name i3 micro technology and is listed on the Stockholm Stock
Exchange, Nordic List. It is headquartered in Kista, Sweden, with sales offices
in France and Germany. www.tilgin.com