Linköping-based Sectra sues CNS

10/9/2002 4:30 AM EST

Sectra, the medical-technology and communications company based in
Linköping, Sweden has sued CNS Systems AB in Linköping for SEK 7.8
million (EUR 850,841). In addition, Sectra has demanded the return of
loaned equipment that the former cooperation partner has refused to hand
back.

Several years ago the two companies entered into cooperation regarding
development of a completely new technology for communications,
supervision and navigation in the aviation field. The Swedish Aviation
Administration (Luftfartsverket) in Norrköping also participated in the
cooperation.

The cooperation has involved development of radio technology for a new
communications system that facilitates an increase in traffic capacity
in the airspace and enhanced flight safety. As part of this project,
Sectra has developed a number of transponders for use on the ground and
in aircraft. The development is based on Sectras more than 15 years of
extensive experience of operations within radio and data communications.

CNS has refused to pay approximately SEK 8 million, corresponding to one
third of the total value of the goods ordered, despite final delivery
being made at the beginning of this year. CNS is considered to have
approved the deliveries thereafter.

"As with many development projects, this one has also involved
supplemental orders and revised timetables. We have completed all
deliverables in the order agreement and also agreed on compensation for
revised timetables," relates Jan-Olof Brüer, President of Sectra. "This
situation with a partner who refuses to pay has never happened before
during Sectra's 24 years of business development. The reason for the
unwillingness or inability to pay is difficult to understand."

The issue will be settled in the Linköping district court.

For further information, please contact:

Sectra AB, Dr. Jan-Olof Brüer, President and CEO,
+46 13 23 52 09,
 

Visit Sectras website http://www.sectra.com

Sectra's operations
Sectra has its roots in Linköping Technical University and is one of
Sweden's fastest growing high-tech companies in the IT area. Since the
mid-1980s, Sectra has successfully conducted development and sales of
high-technology medical IT and telecommunications products. Today, the
business includes products in medical systems, secure communication
systems and wireless information systems.

Business is conducted in six countries with a total of 250 employees.
Sales for the fiscal year May 2001-April 2002 reached SEK 426 million.
Since March 1999, Sectra's shares have been quoted on the O list of the
Stockholm Exchange.