The Board of Directors of IBS AB recommends shareholders not to accept the offer from Deccan Value Advisors

The Board of Directors of IBS AB recommends shareholders not to accept the offer
from Deccan Value Advisors

Background
Deccan Value Advisors Fund L.P., Deccan Value Advisors Fund Ltd., A/D Value Fund
L.P. and Y/D Value Fund L.P. (”Deccan”) announced on 30 June, 2008 a public bid
for all shares in IBS AB (“IBS” or “the Company”). Deccan announced that it had
increased its shareholding in IBS to above 30.0 percent of the votes. Thus, in
accordance with the provisions governing mandatory bids, Deccan made a public
cash offer to the shareholders of IBS.


According to the offer document dated 11 July, 2008 (the “Offer Document”) the
shareholders of IBS are offered to tender all their shares in IBS to Deccan for
a consideration of SEK 9.64 (the “Offer Price”) in cash per share (the “Offer”).
The Offer Price is subject to adjustment should IBS pay any dividend or in any
other way distribute or transfer funds to shareholders before settlement of the
Offer.

On 1 July, 2008, the Board of Directors of IBS (“the Board”) issued a press
release stating that it would revert with its recommendation to the shareholders
well in time before the end of the acceptance period.

The Board has retained Carnegie Investment Bank AB (“Carnegie”) as financial
advisor.

Two of IBS' board members, Vinit Bodas and George Ho are employed by Deccan
Value Advisors L.P., which is the general partner and financial advisor to
Deccan. Due to Vinit Bodas and George Ho being related to the bidder, they have
not participated in the Board's assessment of the offer.

Recommendation by the Board of Directors
It is the opinion of the Board that the Company is currently going through a
transition phase that will significantly improve the long term profitability of
IBS. During the first quarter 2008, IBS launched a new phase of its ongoing
activity program in order to improve profitability. Among the activities in this
phase, IBS reduced the number of non-billable staff considerably compared with
the 2007 level. The implementation of a new global structure in order to better
support international customers in IBS' key industry solutions has been
finalized. The company has just successfully completed a rights issue that was
fully subscribed. The rights issue provided the company with approximately SEK
397 million before transaction costs. This capital will enable IBS to improve
profitability by making investments in new and expanding geographic markets,
complete the new product offerings on new technical platforms, continue the
shift of resources to mid- and low-cost countries and to implement other cost
measures within the aforementioned activity program. A detailed plan for these
activities will be presented during the fall 2008.

In reviewing the Offer and deliberating on its recommendation, the Board has
considered IBS' current performance and future prospects, as well as other
factors deemed to be of relevance in relation to its assessment of the Offer.

Deccan has provided limited information regarding the effects that the
completion of the Offer would have on IBS, in particular with regard to
employment and IBS' strategic plans. Deccan states it does not currently intend
to change IBS' strategic plans or to any material extent, change the terms of
employment or number of employees at the Company's current locations. However,
no guidance is given with respect to any such plans in the medium- to long term.
Based on the very limited information provided to date by Deccan, the Board
cannot make any assessment as to what effect the Offer would have on the
location of IBS' businesses, or the employment situation for current employees. 

Carnegie Investment Bank AB has issued a fairness opinion to the Board of
Directors. This opinion is attached to this statement.

In summary, the Board believes that the transition phase that IBS is currently
going through, will significantly improve the long term profitability of the
Company. In view of this, it is the opinion of the Board that the Offer Price
does not adequately reflect the value of IBS.

The Board recommends IBS' shareholders not to accept the Offer.

Shareholders with a short-term view on their holding in IBS should notice that
the general economic development is currently uncertain. In the event that
further economic developments prove to be worse than expected, this could have a
negative effect on IBS' earnings.

Furthermore, shareholders' attention should also be drawn to the fact that
Deccan currently controls 27.1 percent of the outstanding capital and 44.4
percent of the outstanding votes of IBS. Such ownership concentration could
potentially reduce the liquidity in the market for the IBS share, which could
have a negative effect on its price going forward. 

IBS AB

Board of Directors


For more information please contact:

Oskar Ahlberg, Investor Relations Director IBS AB
Phone: +46 70 244 24 75
oskar.ahlberg@ibs.net

IBS in brief
With over 30 years of supply chain expertise, IBS is a leading provider of
complete ERP solutions. IBS focuses on mid-sized and large distribution
companies, as well as sales and manufacturing subsidiaries of international
groups, mainly within industries such as automotive, electrical, food,
industrial supplies, paper, pharmaceutical, publishing and wholesale
distribution. More than 5,000 customers across some 40 countries use IBS
software to gain fast and measurable returns on IT investments.

IBS B share is listed on OMX Nordic Exchange Stockholm. For more information,
please visit www.ibs.net