COPENHAGEN, Denmark, May 14, 2001 (PRIMEZONE) -- Olicom A/S (OTCBB:OLCMF) ("Olicom" or "the Company") today commented on an EU judgment rendered on May 10, 2001, that gave directions to customs authorities in EU member countries for the rating of customs duty on equipment used in computer networks. On the basis of such judgment and directions, the Company anticipates that it will receive refunds of substantial amounts of customs duties that the Company paid from 1996 to 1999.
The judgment establishes that equipment for computer networks is to be rated as computer equipment and not -- as customs authorities in Denmark and other EU member countries have maintained -- as telephony equipment, which in the period in question had a considerably higher import duty imposed.
The dispute regarding the proper duty for computer networking equipment has been ongoing for several years. As part of the dispute, Olicom had paid duties at the higher rate and made a demand for refunds that presently total DKK 23 to 29 million plus interest. The Company is not presently able to determine what portion of the demand the customs authorities will recognize and whether any refunds will carry interest. Further, it is possible that the case may first be concluded by a judicial ruling. It is expected that the customs authorities will consider Olicom's demand during 2001.
"Even if the judgment does not result in Olicom having an immediate legal claim for a refund, our advisors are of the opinion that the general public importance of the judgment must be recognized by the customs authorities when considering Olicom's demand for refunds," said Boje Rinhart, Olicom's CEO. Rinhart indicated that refunds would be recorded only when a concrete recognition of the demand is received from the customs authorities.
About Olicom
Olicom initiates or participates in the development of new products and services that leverage leading-edge communications technologies, primarily with a focus on satisfying the needs of mobile data communication users. Business opportunities are identified both through Olicom's internal research and through the solicitation of ventures with start-up companies, which are offered seed and venture financing and access to the Company's established business network and infrastructure. More information about Olicom is available from the Company's SEC filings or by contacting the Company directly. Information is also available on the Company's Website at www.olicom.com.
Olicom is a registered trademark.
Except for historical information contained herein, the matters discussed in this news release may contain forward-looking statements that reflect the Company's current expectations and projections about its future results, performance, prospects and opportunities. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties and other factors that could cause its actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Among the risks, uncertainties and other factors that could cause results to differ are uncertain market conditions, the successful implementation of the Company's new strategic direction; the Company's need to continue to identify and acquire interests in suitable portfolio companies; intense competition among capital providers to acquire interests in technology companies; the dependence of the Company on the financial and operating success of the enterprises in which it invests or participates; and existing and future regulations affecting the Company's business, the businesses of its portfolio companies or technology generally. Further information may be found in Olicom's periodic filings with the U.S. Securities and Exchange Commission (SEC), including the most recent reports on Form 20-F and 6-K, which identify important risk factors related to the Company's business that could cause actual results, performance, prospects or opportunities to materially differ from those contained in the forward-looking statements.