Company Announcement No. 12/2007 Copenhagen, Denmark 19 December 2007 Olicom Details Its New Strategy at the Extraordinary General Meeting to be Held on 20 December 2007 Copenhagen, Denmark, 19 December, 2007: Olicom A/S, which trade on OMX Nordic Exchange in Copenhagen, today detailed the proposed new business strategy to be presented at the Company's extraordinary general meeting, which is being held on 20 December 2007. New Strategy It is the Company's vision to become a significant real estate company that is engaged in both investment in and development of real estate. It is the Company's intention to operate broadly within the real estate market and actively search the market for investment opportunities, which will generate value for the Company's shareholders. Initially the Company' geographical focus will be on the Danish - and to lesser extent the Polish - market. It is the intention at a later stage also to include other parts of Eastern Europe. The Company will operate on a project basis with constantly ongoing reviews of its real estate portfolio in order to determine if investments are to be disposed of or are to be kept in order to give the best return for the Company. Initially the Company will be a smaller player in a fragmented real estate market. Olicom will therefore be ready to participate in a market consolidation through i.a. acquisitions paid for through directed share issues but also co-operation agreements with other real estate companies. This will improve the Company's possibilities of making major acquisitions and investments and economics of scale will improve the financial return. Olicom has three remaining investments in technology companies, which will no longer be part of the Company's strategic focus. These investments will therefore be disposed of, but at a pace, which ensures that they are realized at maximum value. Business Model Olicom will strengthen its competencies to support the business model through the acquisition of Castor Holding A/S and Nygade 29-39, Ikast ApS as Olicom's staff will be expanded by three persons each of whom have solid industry experience, a broad industry network and first hand knowledge of the existing port folio. These persons will together with Olicom's CEO, who joined Olicom in September 2007, and who also have extensive industry experience, form the core organization. The Company has thus adapted its management to the new business area by including persons that have the right skills to do business in this area and to implement the new strategy. It is Olicom's intention to further strengthen its competencies, but during the initial phase it may be necessary to form partnerships or engage consultant in order to implement projects. The Company will operate in a way that reduces the risks as much as possible before committing to new projects. All new investments will be preceded by a due diligence study of relevant aspects including technical, legal, financial, environmental, and other issues. In addition the business plan will be adjusted in that way that binding commitments from buyers/tenants covering a significant part of the investment will be obtained before engaging in major projects. Agreement As previously announced the Company has entered an agreement with the real estate investment company ADR nr. 1904 ApS (“ADR”) on a share issue and the acquisition of a real estate portfolio from ADR. The agreement is subject to approval of the terms of the share issue at an extraordinary general meeting being held on 20 December, 2007. Under the agreement ADR will secure Olicom's funding until the share issue has been completed. The share issue is planned to comprise an increase of the share capital by up to DKK 215 million including a directed share issue of approximately DKK 128 million to be proceeded by a rights issue of up to DKK 87 million. Through the directed issue debt of approximately DKK 28 million is converted to equity and 11 business properties predominantly located in Denmark are acquired at a net value of DKK 100 million. The current total market value of the properties is DKK 300 million of which DKK 281 million have been established based on appraisals by independent experts, while the remaining market values has been based on recent purchase prices between independent parties. Subject to approval by the extraordinary general meeting the subscription price for the new shares has been agreed at DKK 0.25 per share, which is the nominal value of the shares. Ownership Structure The current share capital is DKK 4,341,604. If the directed issue is approved by the extraordinary general meeting ADR will become the owner of shares at a nominal value of DKK 128,326,316 out of a total nominal capital of DKK 132,667,920 or 96.7 per cent. When the rights issue has been completed and if all shares up to DKK 87 million are subscribed by others than ADR, then ADR will own 58.5 per cent of the Company's shares and other shareholders will hold 41.5 per cent. ADR is owned 100 per cent by its CEO, Mr. Jesper Jørgensen of Charlottenlund, Denmark. Real Estate Portfolio The real estate portfolio, which - if approved at the EGM - will constitute the contribution in kind to be made by ADR comprises the following properties: Kanalvej 150-154, Lumbyvej 11, 5000 Odense, Denmark The property is situated north west in Odense at the brink of Odense Canal. The general area is expected to undergo major development during the coming years as Odense Habour is planned to change from an industrial habour to a new attractive city area. Kanalvej 150-154 is located at the outskirt of the habour area and the change of the habour area is expected also to reach this area in the future. The many buildings on the site were raised during 1940 through 2002. The major part of the buildings are four office towers totalling 7,983 square metres plus basement areas of 768 square metres. Part of the towers have been used by Odense Tekniske Skole for education purposes but has being vacated during 2007 and will be free for other purposes by the end of 2007. Half of the area in the office towers is rented by the Dansh tax authority SKAT and the remaining tower office area is expected to be rent to new tenants during the next six to nine months. The remaining approximately 30 buildings on the site are used for production and warehousing and total 17,500 square metres plus basement areas of 2,154 square metres. Some of these buildings are vacant. Additional 8,000 square metres may be build on the site. Total rent during 2007 is approximately DKK 6.2 million. The annual rent when all areas are rented will be approximately DKK 10 million. The government valuation for tax purposes as of 1 October 2006 is DKK 157.1 million. Based on an independent valuation the current value has been fixed at DKK 136.0 million. Hadsundvej 64, 8900 Randers, Denmark The property is situated north east in Randers in a former military barracks area. The buildings are situated in the centre of the site and the areas surrounding the site have been mainly zoned as green areas. The area in front of the buildings is paved allowing easy access for trucks and facilitating parking. The buildings were raised in 1957 and were rebuilt and expanded during 1973 through 1987. The buildings that are used for warehousing and production total 19,942 square metres. Additional 15,000 square metres may be build on the site. There are 4 tenants, who pay a total rent including daily maintenance of DKK 4.3 million. An area of 1,425 square metres is free and is expected to be rent at an annual rent of DKK 300,000. The government valuation for tax purposes as of 1 October 2006 is DKK 35.5 million. Based on an independent valuation the current value has been fixed at DKK 44.7 million. Nygade 29-39, 7439 Ikast, Denmark The property is situated in the town of Ikast close to the railroad in a smaller area, which is zoned for production. On the opposite side of Nygade is a housing district. In early 2000 the face of the building towards Nygade was renovated in a spectacular style which in 2004 earned the building the honour of being named the “most beautiful building” in Ikast. The main building is situated in the middle of the complex and holds an office wing. Large window areas dominates the building entrance. The property consists of 12 separate buildings for production and repair shops. The buildings were build during 1954 through 1965 with major rebuilding during 1970 through 1997. The buildings total an area of 18,431 square metres, and the site's total acreage is 27,984 square metres. The buildings are partly rented at a total annual rent of DKK 1.1 million. When fully occupied the annual rent will be approximately DKK 3 million. The government valuation for tax purposes as of 1 October 2006 is DKK 32.8 million. Based on an independent valuation price the current value has been fixed at DKK 33.7 million. Kompasrosevej 6, 2791 Dragør, Denmark The property is situated on a rented site in the southern part of Copenhagen Airport. The building was built in 1989 and comprises an airplane hangar, an office area and a warehouse and repair area. The office area and the warehouse and repair area is located in a horse shoe shaped area surrounding the hangar. The site's acreage is 24,354 square metres of which 8,800 square metres hold the building. The total building area is 11,410 square metres. The building is partly rent at an annual rent of DKK 3.5 million and is estimated to have an annual rent income of approximately DKK 5 million, when fully occupied. There is no specific government valuation for tax purposes. Based on an independent valuation and due to the special nature of the building the current valuation has been fixed at DKK 40 million. Hiort Lorenzens Vej 55-59B, 6100 Haderslev, Denmark This brick building was built in 1992. The property comprises 4 condominiums of a total of 756 square metres. The property is rented by the supermarket chain Aldi and a bar for a total annual rent of DKK 600,000. The government valuation for tax purposes as of 1 October 2006 is DKK 7.7 million. The property was recently acquired by Castor Holding A/S from an independent 3rd party at a price of DKK 9.7 million, which amount is also the current valuation. Istedvej 2, 6330 Padborg, Denmark The property is a combined office and warehouse building, which was built in 1989. The office space is 603 square metres and the warehouse facility is 1,807 square metres for a total of 2,410 square metres. Currently part of the building is rent for an annual amount of DKK 200,000, and it is expected that the remaining part of the building will be rented for an annual amount of DKK 600,000. The government valuation for tax purposes as of 1 October 2006 is DKK 10.4 million. Based on an independent valuation the current value has been fixed at DKK 9.1 million. Vandmestervej 18, 2630 Tåstrup, Denmark The property was built in 1982 and comprises more smaller buildings. In 1992 the buildings were renovated and expanded. The acreage totals 411 square metres. The property is used for offices and housing and the annual rent is DKK 300,000. The government valuation for tax purposes as of 1 October 2006 is DKK 2.9 million. The property was recently acquired by Castor Holding A/S from an independent 3rd party at a price of DKK 3.9 million, which amount is also the current valuation. Titangade 18, 2200 Copenhagen, Denmark The building was built in 1938 and was rebuild and expanded in 1990. Half of this brick building is in two stories. The area is 952 square metres plus a basement area of 32 square metres. The tenants are minor businesses and a membership organization except for a vacant area of 98 square metres. Total rent for 2007 is approximately DKK 500,000. The valuation of the property is impacted by a right for the Municipality of Copenhagen to buy back the site in 2020. The government valuation for tax purposes as of 1 October 2006 is DKK 5.6 million. Based on an independent valuation the current value has been fixed at DKK 2.5 million. Ribevej 6, 8900 Randers, Denmark This property, which is used for production and warehousing, was acquired from a bankruptcy estate. The site's acreage is 4,193 square metres and the building area is 1,605 square metres. Currently two tenants rent 340 square metres for office and warehouse at an annual rent of DKK 100,000. The vacant areas are 1,265 square metres, which are expected to be rent at DKK 236 per square metre during 2008. The government valuation for tax purposes as of 1 October 2006 is DKK 4.1 million. Based on an independent valuation the current value has been fixed at DKK 3.8 million. Grøftebjegvej 25, 5492 Vissenbjerg, Denmark The property has been used for growing vegetables and flowers and includes a greenhouse area of 23,000 square metres and an office and housing building of 394 square metres. The site's acreage is 115,300 square metres. A small greenhouse is rent and the office and housing building is in the process of being rent totalling an annual rent of DKK 100,000. The government valuation for tax purposes as of 1 October 2006 is DKK 3.5 million. Based on the expected sales price the current value has been fixed at DKK 1.8 million. Broby Sykehus, Broby, Sweden The property is a former hospital situated in Broby between Karlshamn and Kristianstad in the Skåne region. The property comprises 21 buildings with a total of 8,600 square metres. The site's acreage is 510,424 square metres. Only a minor part of the buildings have been rented for an annual rent of SEK 400,000 plus income from foresting of approximately SEK 200,000 per year. Based on an independent valuation the current value has been fixed at DKK 15.0 million. Option agreement re. Equity interests in Universe Art Sp.z o. o and Universe System Sp.z o. o In addition to the real estate portfolio described above Olicom will also receive options to buy shares in two Polish companies that both are engaged in condominium projects in Krakow in Poland. Prior to Olicom's Board of Directors making a decision on the exercise of the options a full due diligence and business evaluation will be made. The options are as follows: (A) Nominal value PLN 24,500 in Universe Art Sp.z o. o. The shares comprise 49 per cent of the company's total share capital. The shares can be acquired by Olicom at a cash price of DKK 32 million plus interest of 8 percent per year since 1 December 2007. (B) Nominal value PLN 20,000 in Universe System Sp.z o. o. The shares comprise 40 per cent of the company's total share capital. The shares can be acquired by Olicom at a cash price of DKK 25.5 million plus interest of 8 percent per year since 1 December 2007. The options expire on 1 February, 2008. Castor Holding A/S' and Nygade 29-39, Ikast ApS' financial results Castor Holding A/S and Nygade 29-39, Ikast ApS are expected to have total rent income during 2007 of DKK 17 million. Operating and administrative costs are expected to be approximately DKK 9 million. The result excluding valuation adjustments and financial items will thus be in the order of DKK 8 million, which is DKK 1 million higher than the result for 2006. The improvement is mainly due to additions to the real estate portfolio. If the portfolio was fully rented total rent income would be approximately DKK 24 million. Currently the companies have a positive cash flow. Conclusion By acquiring the two real estate companies Olicom will become established in the real estate market and be ready for implementing the new strategy. The options for participation in the two Polish real estate ventures will, if exercised, contribute further to the implementation. Forward Looking Statements This announcement contains forward looking statements, which are subject to risks and uncertainties, which may cause actual results to differ from the anticipated results. Further information about Olicom can be found at www.olicom.com or obtained by contacting CEO Per Brøndum Andersen tel. +45 4527 0000 or e-mail pba@olicom.com.