Effnet conducts designated new issue

12/8/1999 8:13 AM EST

EFFNET CONDUCTS DESIGNATED NEW ISSUE

The board of Effnet Group AB (publ) has on December 8, 1999 decided to conduct
a new issue of 1,200,000 shares without preferential rights for existing
shareholders. The decision was taken with authorisation given at the
shareholders' meeting of October 14, 1999. The reason for the issue is to
supply the company with the resources for continued expansion and to increase
institutional ownership. The issue has been designated for a number of large
Swedish and international investors. Approximately half of the newly issued
shares have been placed with large international investors. The subscription
price of SEK 316 per share was established through book-building. The issue
will provide the company with approximately SEK 364 million after the
deduction of issue costs. The new issue was significantly over-subscribed and
was closed in advance. The designated new issue has been led by Hagströmer &
Qviberg Fondkommission AB in co-operation with Nordberg Capital Inc.

"The capital provided means that we can further increase the pace. We can now
expand more quickly in both the USA and Europe and can vigorously market our
unique technology and our products. Furthermore, Effnet gets a broader
ownership with more institutional and international investors. This will offer
us increased stability in negotiating with large international players," says
Tomas Althén, CEO of Effnet Group.

For further questions contact:

Tomas Althén, CEO of Effnet Group AB (publ), Tel :+46 708 15 16 15 or
Johan Unger, Hagströmer & Qviberg Fondkommission AB: +46 8 696 19 33.

Effnet has 50 employees and is expanding rapidly. Research and development is
currently based in Luleå. In 1998, the company opened a sales and marketing
office in Boston, Massachusetts and an additional office in Stockholm, Sweden.
The company's technology has been field tested and proven via a line of
firewall products initially marketed exclusively in Sweden. Server-based, PCI
add-on products based on Effnet's algorithm will become available in the
United States in the coming months.

Additional information about Effnet is available through the Web at
www.effnet.com