The shareholders meeting of SwitchCore has approved the

Today's extraordinary shareholders meeting of SwitchCore AB (publ)
resolved, in accordance with the Board's proposal, to approve the
transfer of assets, certain contracts, etc related to SwitchCore's
operations to eSilicon Corporation. The transaction realizes the cash
flow from the existing products and eliminates the business risks in
anticipation of a future deal that provides SwitchCore with a
profitable new business through an issue in kind. Such a future deal
is required for the purpose of realizing the value of SwitchCore's
accumulated tax deficits as well.

The purchase price amounts to USD 3M in cash (corresponding to SEK
19.5M) of which USD 2M will be paid on the completion date and the
remainder at the latest one year thereafter. The sale is intended to
be completed by no later than tomorrow. The sale is conditional upon
nothing having occurred (of which eSilicon has not been notified in
writing) after the 17 November signing date that materially adversely
affects SwitchCore's ability to transfer the assets to eSilicon as
stipulated in the agreement. There are no such circumstances. The
sale is not otherwise subject to conditions.

For further information regarding the sale, please see the company's
press release of 19 November 2007.

The shareholders meeting further resolved, in accordance with the
Board's proposal, to reduce the share capital by approx. SEK 117.7M
to cover losses without redeeming shares.

The sale to eSilicon and the reduction of the share capital duly
address the shortage in the company's share capital, making it
possible to present a new balance sheet for liquidation purposes at a
future shareholders meeting (within the prescribed eight-month
deadline from the AGM held June 14, 2007) that shows no such shortage
and to resolve that the company not be liquidated. It also secures
liquidity for SwitchCore in anticipation of a future deal that
provides SwitchCore with a profitable new business through an issue
in kind. A shareholders meeting for presentation of a new balance
sheet for liquidation purposes and resolution that the company not be
liquidated is preliminarily scheduled for 12 February 2008.

Lund, Sweden, 18 December 2007

For further information, please contact:
Erwin Leichtle, President & CEO SwitchCore AB (publ)
Email: erwin.leichtle@switchcore.com
Phone: +46 70 338 93 00

About SwitchCore
SwitchCore's headquarters are in Lund, Sweden. The company is listed
on the OMX Nordic Exchange Stockholm (Small Cap) (ticker: SCOR).
Since the company's announcement to draw up a balance sheet for
liquidation purposes, the company has been placed on the observation
list. For further information about SwitchCore, please visit
www.switchcore.com .

The information in this press release is such that SwitchCore AB
(publ) may be required under the Securities Markets Act to make it
public. The information was submitted for publication at 10:40 am
 CET on 18 December 2007.
The shareholders meeting of SwitchCore has approved the sale to eSilicon and has resolved to reduce the share capital
