- Nýherji hf. acquires 77% share in TM Software hf. a leading Icelandic IT company.

•	The deal strengthens Nýherji Group as a total ICT solution provider.
•	TM Software is a leading hosting and software company in Iceland.
•	TM Software will operate as an independent subsidiary of Nýherji.
•	Combined revenues of the companies will amount to ISK 13 billion.

Nýherji hf. has agreed to acquire 77% of the shares in the IT company TM
Software hf. from Straumur hf., FL Group hf., and Tryggingamiðstöðin hf. The
objective of the acquisition is to strengthen Nýherji´s position in offering
hosting and outsourcing services, as well as in the development of ERP and
specialized software solutions for the business market. Straumur Investment
Bank brokered the agreement, which is conditioned on a satisfactory outcome of
a due diligence process and acceptance of the Competition Authority. 

TM Software has five subsidiaries: Skyggnir, Origo, Vigor, eMR and ITP.  TM
Software is a leading provider of hosting, outsourcing and software services in
Iceland.  TM Software services many of Iceland's largest corporations and
governmental organizations.  The revenue of TM Software is estimated to be ISK
2.500 million in 2007. 

The acquisition of TM Software is an important step in strengthening the
position of Nýherji Group as a solution and service provider.  More than 50% of
the revenues of the combined group will come from sales of software and
service.  The total revenue of the group after the acquistion of TM Software
will be ISK 13 billion with the number of employees totaling 750. 

The value of the total share capital of TM Software is ISK 1.700 million with
the 77% share being worth around ISK 1.300 million.  Nýherji plans to issue new
share capital in the nominal value of ISK 55 million to finance part of the 
acquisition.  The price per sold share will be ISK 22.  Hence, the sale of new
shares will finance ISK 1.210 million of the acquisition. Of the 77% share, two
thirds will be paid upfront, whereas one third will be financed with shares in
Nýherji.  The intention is to allocate up to ISK 25 million of the nominal
value of the shares in Nýherji to pay the shareholders of TM Software, whereas
ISK 30 million of the new nominal shares will be offered for sale to current
shareholders of Nýherji.  The remainder will be financed with loans and through
own cashflow.  Nýherji will invite other shareholders of TMS to sell their
shares at the same terms as the shareholders who have already agreed to sell
their shares. 

Thórdur Sverrisson, Managing Director of Nýherji on the acquisition of TM
Software: 
“The acquisition of TMS will provide our customers access to a complete set of
ICT services, as well as strengthening the company and turning it into a
leading ICT, software and outsourcing IT enterprise in Iceland.” 

About Nyherji hf.
Nyherji is a market-driven, knowledge-based company in the field of IT and
consultancy. Nyherji's role is to create added value for its customers through
its employees' IT expertise and knowledge of business operations and clients.
The company is one of Iceland's leading IT companies, with a wide range of
products, services and solutions for companies and individuals. 

About TM Software
TM Software hf. is an international software and outsourcing company with over
275 employees. TM Software offers total IT-solutions under its own brand, as
well as sales and services of standardized software solutions.   Established in
1986, the company's initial name was TölvuMyndir, whereas in 2005 the name was
changed to TM Software.  The company's headquarters are in Iceland. 


For further information, contact Nýherji's Managing Director, Thórdur
Sverrisson, 
tel. +354-569-7700, mob. +354-893-3630 or thordur.sverrisson@nyherji.is