Tilgin Divests its IPTV Business to Focus on IP Residential Gateways

Tilgin Divests its IPTV Business to Focus on IP Residential Gateways 

Stockholm, Sweden, 20 November 2008: Tilgin, a leading provider of solutions for
multiplay and next-generation broadband services, today announces that it
divests its IPTV business to UK-based Amino Technologies plc and focuses on its
IP Residential Gateway business.

Tilgin IPTV AB has been divested for an initial consideration of SEK 30.0
million on a debt-free basis, payable in cash on completion on December 1.
Additionally, there is a capped cash earn-out mechanism offering an additional
maximum consideration of SEK 15.0 million based on sales in 2009. The net result
of the transaction is preliminarily expected to be a loss of approximately SEK 8
million, excluding the earn-out.

“Our IP Residential Gateway business shows good growth and profitability. As we
focus our resources in this area, we will take full advantage of our strong
position as operators launch the next generation of broadband services”, says
Ola Berglund, CEO of Tilgin. “With its broad IPTV product portfolio, Amino has
the reach and resources to take the IPTV business to the next level.”

Tilgin's focus is now on its offering of IP Residential Gateways, enabling
telcos and broadband operators to offer the digitally” connected home”. Within
IP Residential Gateway, Tilgin has a strong market position and leading
solutions with systems for delivery of advanced broadband services into
households. For the third quarter the segment reported net sales of SEK 52.4
million, corresponding to 89 percent of Tilgin's total sales. The net sales in
IP Residential Gateways increased 68 percent from same period last year, and 39
percent from the second quarter. The operating profit amounted to SEK 12.4
million. For the first nine months the net sales amounted to SEK 115.6 million
and the operating loss to SEK 0.1 million. With more than 30 customers in over
ten countries, Tilgin's IP Residential Gateway business has a broad customer
base and a wide international span. 

Tilgin's IPTV business has an attractive strategic position, but has not yet
reached the volumes required for sustainable profitability. Tilgin's former IPTV
business will complement and enhance Amino's product portfolio. Furthermore,
Amino and Tilgin intends to commence a sales cooperation regarding IP
Residential Gateways. 

In the third quarter, the net sales in the IPTV segment amounted to SEK 6.7
million corresponding to 11 percent of Tilgin's total sales. The operating loss
amounted to SEK 12.9 million. For the first nine months, the segment reported
net sales of SEK 15.7 million and an operating loss of SEK 44.8 million. 

Tilgin's IPTV business employs 36 persons, all of which are part of the
transaction. The previously communicated customs duty claims are not part of
this transaction.

For more information about the two companies, please visit www.tilgin.com and
www.aminocom.com

― End ―

“Tilgin makes this information public in accordance with the Swedish Securities
Exchange Act and/or in accordance with the Swedish Financial Supervisory
Authority.” 


For further information: 
Ola Berglund, CEO Tilgin AB
Telephone: +46 739-618603 
E-mail: ola.berglund@tilgin.com

About Tilgin 
Tilgin designs and delivers premier IP customer premises equipment (CPE) for
advanced Triple Play and IMS-based services. Supporting the full convergence of
voice, video and data, Tilgin takes a network systems approach to CPE that
enables service providers to offer a broad range portfolio of innovative and
competitive broadband services. Tilgin's comprehensive product portfolio of IP
residential gateways, set-top boxes and related management applications, offers
service providers unprecedented return on investment - delivering new service
revenues and impressive cost savings over the lifetime of the product. Tilgin
was founded in 1997 under the name i3 micro technology and listed on the
Stockholm Stock Exchange on the Nordic List as of December 2006. It is
headquartered in Kista, Sweden, with European sales representation in France and
Germany. www.tilgin.com