Observer takes strategic step toward global presence with its first acquisition in North America

8/27/2001 3:56 AM EST

Observer takes strategic step toward global presence with its first
acquisition in North America

Observer is taking its first step across the Atlantic by acquiring
Canada's leading media monitoring company. The acquisition, Observer's
sixth in less than two years, is an element in its strategy to establish
a global presence. The company now has operations in 12 countries in
Europe and North America.

Through the acquisition of Bowdens of Canada, Observer will have its own
operations in the North American market. North America is a market of
equal size to Europe, where Observer is the market leader, at the same
time that it is the largest company in the world in media and market
monitoring and communication evaluation. Observer has its own companies
in 11 European countries, with the UK, Sweden and Germany as its largest
single markets. Through Observer's network, clients have access to
services from around fifty countries in every part of the world.

To further utilize the significant economies of scale inherent in its
business, a continued geographic expansion is an important part of
Observer's growth strategy. With today's announcement, the company has
completed six acquisitions in five countries in the last 20 months.

With operations in Canada, Observer will have the opportunity to
introduce the same broad range of services in North America as it has in
Europe in recent years. Its presence in Canada also increases the
alternatives for a continued expansion into the U.S.

"Bowdens is a strategically important acquisition and a company with
skilled employees, good profitability and a market leading position in
Canada," says Observer CEO Robert Lundberg. "With this acquisition, we
also establish a platform for further expansion in North America. Our
position gives us the opportunity to grow our own operations and paves
the way for additional acquisitions in this market."

Bowdens, which has operations in seven cities in Canada, is
headquartered in Toronto. It had a turnover of approximately SEK 125
million in 2000 with nearly 270 employees.

Observer is acquiring Bowdens from a company within the Rogers
Communication Inc. and expects the acquisition to have a positive impact
on profit, before goodwill amortization, from this year.

Facts about Observer AB
Observer AB, quoted on the Attract 40 section of Stockholm Stock
Exchange's O-list, operates in the fields of media and market
monitoring, analysis and communication-evaluation, target group
identification for PR- and IR purposes and is world leading in its line
of business. On a rolling twelve-month basis, Observer AB has a turnover
of more than 134 million EUR and employs around 2,000 people in the UK,
Sweden, Canada, Germany, Finland, Norway, Denmark, Portugal, Ireland,
Estonia, Latvia and Lithuania.

For further information, please contact:
Robert Lundberg, President and CEO, phone +46 8 507 410 10,
e-mail:  

Per Blixt, Senior VP Corporate Communications, phone +46 8 507 410 12 or
+46 70 549 28 08, e-mail:  

This press release is also available online at: www.observergroup.com