All assets related to EDB Telecom's Network Inventory and European Mediation businesses will be transferred to Comptel. The amount to be paid by Comptel is NOK 140 million in cash. The businesses are transferred free from cash and debt. All EDB Telecom's 162 employees will be transferred to Comptel. The completion of the acquisition is expected to take place 3 October 2005.

 

"This acquisition is a major step in Comptel's growth strategy that is based on expanding the product portfolio and strengthening our market presence. We are confident that combining the experience and deep technical knowledge of both companies will create a strong market position for the longer term. The complementing product lines and customer base will allow us to increase sales and improve customer service by utilizing the sales and service networks more efficiently, said Sami Erviö, President and CEO, Comptel Corporation.

 

Under a separate agreement EDB Business Partner ASA will sell all its shares in Telesciences Inc to a company owned by current management of Telesciences. EDB Business Partner will receive USD 2.050.000 (app. NOK 13 million) in cash from the sale. This transaction will be completed 30 September 2005. Prior to the transaction, EDB Business Partner will transfer an amount in the range of USD 15 million as dividend from Telesciences that currently represents an inter company loan from Telesciences Inc. This transfer will have no cash effect on Group accounts.

 

EDB expects to report a gain from these transactions in the range of NOK 20 million. Further notice as to the accounting effects will be provided as part of the closing of the two transactions.

 

 

Sami Erviö, President and CEO

Tel. +358 9 700 1131

 

Pellervo Hämäläinen, Senior Vice President

Corporate Communications and IR

Tel. +358 9 700 11787           

 

Tore Valderhaug, Executive Vice President and CFO

Tel. + 47 995 60 925