NeoNet sets new financial targets and proposes increased dividend via redemption of shares

NeoNet sets new financial targets and proposes increased dividend via redemption
of shares

• The Board of NeoNet has set new long-term financial targets for the period
2008-2010. The new targets state that by 2010 NeoNet will have at least doubled
its operating revenues and achieved EBT of around SEK 400 m.

• For 2007 the Board proposes an increased dividend to shareholders of SEK 2.10
(0.40) per share via an automatic redemption procedure.

• The redemption amount is a deviation from NeoNet's dividend policy, which
states that the distribution shall be equivalent to at least half of earnings
after tax. The deviation does not, however, represent a change to the
established policy.

In the light of NeoNet's strong development over recent years and its good
future prospects, the Board of Directors has set new long-term financial targets
for the period 2008-2010. The new targets state that by 2010 NeoNet will have at
least doubled its operating revenues and achieved EBT of around SEK 400 m. The
previous financial targets for the period 2007 to 2010 stated that by 2010
NeoNet would have achieved a revenue level of at least SEK 800 m and EBT of at
least SEK 200 m. NeoNet's strong development in 2007 meant that the Group was
close to achieving the targets three years in advance. 

“NeoNet has developed from being a local Swedish broker to becoming a global
provider of transaction services. This has been achieved during a period in
which the world's financial markets have been characterized by rapid development
and a fast rate of change, which has created new requirements for electronictrading. NeoNet is well positioned in the changed landscape and is gaining
greater leverage for its offering thanks to the new market structure,” comments
Simon Nathanson, President and CEO of NeoNet. 

Based on the Group's financial position, profit development and expected growth,
the Board intends to propose that the Annual General Meeting passes a resolution
to redeem treasury shares. The redemption procedure means that each existing
share will be divided into three shares (3:1 share split). The two new shares
will be designated as series 1 and 2 redemption shares respectively. In June
2008 series 1 redemption shares will automatically be redeemed against payment
of SEK 1.00. Series 2 redemption shares will automatically be redeemed against a
subordinated debenture of SEK 1.10. The debenture loan will run for one year
from the date of issue, which is expected to be in June 2008. No interest is
payable on the debenture. The company will be given the opportunity to request
redemption of the loan before the due date.

The proposal will mean a transfer to shareholders of SEK 136.6 m. The proposed
transfer of value is a deviation from NeoNet's established dividend policy. 

For further information, please contact:

Ulrika Lilja
Head of Communications, NeoNet
+46 8-454 15 82

NeoNet is an agency broker offering clients neutral high-speed direct market
access (DMA) trading on the world's leading stock
exchanges and alternative trading venues. In addition, banks and broker-dealers
can trade using their own exchange memberships leveraging NeoNet's technology
and infrastructure, NeoNet XG. NeoNet is listed on the OMX Nordic Exchange in
Stockholm and has clients in over 20 countries globally. There are offices and
sales representation in France, Germany, Italy, Sweden, US and UK.
(www.neonet.biz)