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June 6, 2010

EDB, ErgoGroup partner to create Nordic IT vendor

EDB's shareholders to hold 53% and ErgoGroup's sole shareholder, Posten, to hold 47% of the combined company

By CBR Staff Writer

EDB Business Partner and ErgoGroup have agreed to recommend to their shareholders a combination of EDB and ErgoGroup to create Nordic IT vendor, with the capacity for accelerated organic growth and financial strength.

EDB’s shareholders will hold 53% and ErgoGroup’s sole shareholder, Posten, will hold 47% of the combined company following completion of the combination, while Telenor will hold approximately 27.2% of the combined company, for which an interim name as EDB ErgoGroup ASA is given.

Telenor Group holds an ownership share of 51.3% of EDB Business Partner.

EDB said that combined company will conduct a share issue of up to NOK 1bn in new equity to strengthen the combined balance sheet and to provide strategic and financial flexibility going forward.

The ownership ratio in EDB ErgoGroup between EDB’s and ErgoGroup’s shareholders after completion of the Merger will be 1:0.887.

Jon Baksaas, president and CEO of Telenor Group, said: “This transaction is an excellent opportunity to create a major player in this market. From our point of view, this combination will be beneficial to EDB and its shareholders.”

John-Arne Haugerud, acting CEO of EDB, said: “Together with ErgoGroup, we are now taking a historic leap forward in the best interests of our customers, employees and shareholders. We are bringing together 50 years of IT innovation in Norway and the Nordic market, establishing a unique foundation for continued growth and technological development.”

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The transaction is expected to be complete in Q4 2010, meanwhile EDB and ErgoGroup will be managed as separate companies.

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