Extraordinary general meeting of shareholders of Effnet Group AB

8/29/2002 12:43 PM EST

Extraordinary General Meeting of Shareholders of Effnet Group AB

Effnet Group AB has passed resolutions at the extraordinary general
meeting of shareholders held today, in accordance to the board of
directors' proposal, to reduce the Company's share premium reserve by
SEK 175 million. The resolution was conditional upon approval being
obtained by the court in accordance with the stipulations of the Swedish
Companies Act.

About Effnet
Effnet develops and sells embedded software that increases the
efficiency, speed and security of IP traffic on fixed and mobile
networks to manufacturers of network products. Effnet techniques enable
optimal performance for IP packet processing. The company was founded by
leading researchers in the Header Compression field and has operations
in Stockholm, Sweden and Tucson, Arizona. Effnet Group AB is quoted on
the New Market in Sweden (symbol: EFFN). More information can be found
at www.effnet.com.

For further information please contact:
Magnus Ryde, Chairman Effnet Group AB
+1-408-262-3448, +1-408-221-8941, +46-(0)70-222 0611

Göran E. Larsson, Vice Chairman Effnet Group AB
+46-(0)8-564 605 50, +46-(0)705-65 68 69