STOCKHOLM, Sweden, June 06, 2002 (PRIMEZONE) -- Song Networks AB, the Swedish subsidiary of Song Networks Holding AB (Nasdaq:SONW), (Stockholmsborsen:SONW), has signed an agreement with Scandic Hotels regarding supply of data communications. The value of the agreement is approximately SEK 30 million over 3.5 years. The solution covers 136 of Scandic Hotels' hotels and offices in the Nordic and Baltic countries. The agreement is Song Networks' largest agreement on data communications in Sweden.
Scandic Hotels, one of Song Network's major telephony customers, has chosen to increase the collaboration by investing in a new data network (WAN - Wide Area Network) which improves the communication between the 136 hotels and offices covered by the agreement. One of the requirements of the procurement was that the supplier had to be able to take on the overall commitment for data communications. The solution, which the hotel group has bought is based on Song Networks' IP/VPN service, which is supplied via Song's own Nordic broadband network and which provides the customer with high capacity, availability and security in its data communications. The agreement includes an option to increase the number of services, e.g. with SoHo Services (VPN with secure connection for staff who wish to reach Scandic Hotels' network from home or whilst travelling). The data network also supports other services such as video- conferencing.
"Following evaluation and tests we found Song Networks' solution to be the best for our needs. The solution is based on modern technology, which also gives us the possibility of rapid introduction of new services," says Finn Are Rosvoll, IT Manager of Scandic Hotels AB.
"We are naturally very pleased and proud that Scandic Hotels is choosing to increase its commitment to us. This once again shows that the big investment we have made in our own backbone fibre and access network in the Nordic countries is an investment which has made it possible for us to meet the stringent requirements which are now made of a datacom and telecom operator," said Peter Lovgren, Managing Director of Song Networks AB.
Photos of the signing of the agreement can be downloaded from www.songnetworks.se/press under "bildbank" for free publication.
For further information, please contact: Song Networks AB Song Networks Holding AB Peter Lovgren, Managing Jenny Moquist, Investor Relation Manager Director Phone: +46 8 5631 0219 Phone: +46 8 5631 06 56 Mobile: +46 701 810 219 Mobile: +46 701 810 656 jenny.moquist@songnetworks.net peter.lovgren@songnetworks.se Scandic Hotels AB Finn Are Rosvoll, IT Manager Phone: +46 8 517 352 14 Mobile: +46 709 735 214 far@scandic-hotels.com
About Song Networks, formerly Tele1 Europe, (NASDAQ: SONW), (Stockholmsborsen: SONW). Song Networks is a rapidly expanding data and telecommunications operator with activities in Sweden, Denmark, Finland and Norway. The Company provides comprehensive solutions for data, internet, hosting and voice, to businesses in the Nordic region. Song Networks is currently the only pan Nordic operator investing in local access networks with broadband capacity. The Company has built local access networks in the largest cities in the Nordic region. The access networks, which are linked by a long-distance network is one of the fastest data and internet super-highways in Europe, with an initial capacity for customers of up to one gigabit. The Company was founded in 1995 in Sweden and has approximately 1,000 employees. The head office is located in Stockholm and there are an additional 34 offices located in the Nordic region. For further information, please visit our website at www.songnetworks.net
About Scandic Hotels
Scandic Hotels is the Nordic countries' leading hotel chain, with 141 hotels in 9 countries, and is owned by Hilton International. Hilton International currently runs over 380 hotels in over 60 countries, and is part of the London-based Hilton Group plc, which together with Hilton Hotels Corporation, based in Beverly Hills, markets the Hilton brand, the world's best-known hotel brand. Together they offer over 2,400 hotels all over the world. Further information at www.hilton.com, www.scandic-hotels.com
Certain statements contained in this press release contain "forward- looking statements" within the meaning of the U.S. federal securities law. Such statements are based on the current expectations of the management of Song Networks Holding AB only, and performance is subject to risks, uncertainties and other factors that could cause actual results to differ materially from these statements. Such risks include, but are not limited to, adverse regulatory, technological or competitive developments; decline in demand for the company's services or products; inability to timely develop, introduce and market new technologies, products and services; pricing pressures resulting from competition; unforeseen construction delays; and the inability to successfully manage systems failures or shutdowns and service interruptions or reduced services to customers. For a more detailed discussion of such risks and uncertainties affecting the company, please refer to Song Networks Holding AB's reports that are filed from time to time with the U.S. Securities and Exchange Commission, including the company's annual report on Form 20-F and reports on Form 6-K.
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