Tilgin chooses a payment schedule for custom duties

Tilgin chooses a payment schedule for custom duties

Stockholm, Sweden, 17 October 2008: Tilgin has decided to withdraw its request
for postponement of payments regarding the previously communicated customs
duties from 2007 and 2008. Instead, Tilgin will pay the duties according to a
payment schedule for all customs duties. Tilgin's position is that the Swedish
Customs has no basis for its claims and has as earlier communicated appealed all
claims to the County Administrative Court. Today's announcement does not in any
way affect Tilgin's position in future court proceedings. 

Customs duties are excluded from the price in the customer agreement that
applies to the relevant imports. If Tilgin should ultimately incur any customs
duties, the company will claim compensation in accordance with the contract from
the relevant customer with respect to the amounts that the company may have to
pay.
As previously announced, Tilgin has appealed the two customs duties that the
company received in 2008 amounting to SEK 16.7 million and the one from 2007
amounting to SEK 4.8 million. Security has been provided for the first customs
duty from 2007.
To avoid having to provide further security for the amount of SEK 16,7 million,
Tilgin has now decided to withdraw its request for postponement of payments.
Instead, Tilgin chooses a payment schedule for all customs duties, a total of
SEK 21.5 million, whereof SEK 1.8 million is VAT. The payment schedule is over
12 months. Thus, the Swedish Customs has released the requirement of security
for customs duties from 2007. This means that less capital is tied up in these
customs duties until the trial in the County Administrative Court, which Tilgin
expects will happen before the end of the year. 
Tilgin's position is that the Swedish Customs has no basis for its claims and
that the customs duty imposed is incorrect. If the County Administrative Court
judge in favor of Tilgin, the amount paid will be refunded immediately.

― End ―

“Tilgin makes this information public in accordance with the Swedish Securities
Exchange Act and/or in accordance with the Swedish Financial Supervisory
Authority.” 


For further information: 
Ola Berglund, CEO Tilgin 
Telephone: +46 739-618603 
E-mail: ola.berglund@tilgin.com

About Tilgin 
Tilgin designs and delivers premier IP customer premises equipment (CPE) for
advanced Triple Play and IMS-based services. Supporting the full convergence of
voice, video and data, Tilgin takes a network systems approach to CPE that
enables service providers to offer a broad range portfolio of innovative and
competitive broadband services. Tilgin's comprehensive product portfolio of IP
residential gateways, set-top boxes and related management applications, offers
service providers unprecedented return on investment - delivering new service
revenues and impressive cost savings over the lifetime of the product. Tilgin
was founded in 1997 under the name i3 micro technology and listed on the
Stockholm Stock Exchange on the Nordic List as of December 2006. It is
headquartered in Kista, Sweden, with European sales representation in France and
Germany. www.tilgin.com