TagMaster AB divests loss making business in Malaysia

Stockholm, December 20, 2012

TagMaster AB is selling its daughter company in Malaysia to a Malaysian buyer.
The sale is a step in the direction of the TagMaster strategy to focus on
selected application segments within the RFID market.

The sale means that TagMaster will have no further costs for running the company
in Malaysia. The debts of the Malaysian company will be written of and they will
be taken in the 2012 result. The total cost (losses) is around 1 MSEK for the
period until the sale of the company.

Since TagMaster AB acquired the company Free2Move in Asia and thereby
established TagMaster SB with business in Malaysia, the growth expectations have
changed dramatically, partly due to not realized sales volumes (much lower
volumes and a negative result), partly due to delay in commerzialisation of new
products and projects. These changed market conditions has lead to a re
-evaluation of the goodwill from the acquisition of Free2Move Asia and resulted
in a write down with 3 MSEK of this goodwill in quarter 3.

The divested business has had a total turnover 2012 of almost 3 MSEK.

There will be a continuation of the cooperation with the Malaysian company and
its new owner whereby the company will continue to represent and sell the
TagMaster products in Southeast Asia.

About TagMaster

TagMaster is an application driven technology company that designs and markets
advanced radio frequency identification (RFID) systems and information products
for demanding environments. Application areas include vehicle access control,
rail bound transportation and logistics , in order to increase efficiency,
security, convenience and to decrease environmental impact. TagMaster has
dedicated agencies in the US and in China and exports mainly to Europe, Middle
East, Asia and North America via a global network of partners, systems
integrators and distributors. TagMaster was founded in 1994 and has its
headquarters in Stockholm. TagMaster is a public company and its shares are
traded on First North stock exchange in Stockholm, Sweden. TagMaster’s certified
adviser is Remium AB.

www.tagmaster.com

For more information, please contact:
Jonas Svensson, CEO + 46(0)730-528350, jonas.svensson@tagmaster.com