Anoto Group to Restructure and Reduce Its Staff


LUND, Sweden, Sept. 28, 2004 (PRIMEZONE) -- The purpose of Anoto's restructuring initiative is to ensure a more efficient, transparent organization. The change stems from the desire on the part of Anoto's partners to assume greater responsibility for developing and introducing new products, as well as the company's strategic goal of focusing on technology solutions. As a result, the company will reduce its staff and issue notices of termination to some ten employees.

The staff reduction involves consolidating sales, support and product management positions while cutting back on the number of managers and management levels.

"These changes will guarantee a more efficient, transparent organization," says Anders Tormod, CEO of Anoto Group AB. "While moving all sales and administration to Lund, we will make our R&D effort more efficient, including a reduction in the number of management levels. We deeply regret that we have to issue notices of termination, but we must adapt to the new requirements of our customers and make sure that we can meet our profitability and cash flow targets. The commitments we have made to our customers remain our biggest priority. With the new organization, our expertise will be more readily accessible. That translates into more efficient cooperation with our partners."

The staff reduction will bring the Group's monthly costs below the previously announced figure of SEK 12 million. The full impact of the cost savings programme will show up starting in the second quarter of 2005. Most of the staff reduction and restructuring costs, estimated at a maximum of SEK 10 million, will be charged to third quarter 2004 earnings. Anoto stands by its forecast of positive Group cash flow for full-year 2005.

The Anoto Group chose Mr. Tormod as its new CEO in mid-September 2004. That represented one step in restructuring the company to ensure a more efficient, transparent organization.

For more information, please call: Anders Tormod Charlotte Laveson CEO Head of Investor and Public Relations Anoto Group AB Anoto Group AB +46 733 47 86 37/+46 733 47 86 20

Anoto Group AB is a Swedish hi-tech company with unique solutions for transmission of handwritten text from paper to digital media and scanning of printed text. All products are based on digital camera technology and image processing in real time. The Anoto Group today has two brand names: Anoto(R) -- a comprehensive solution entailing paper, pen and server technologies, allowing us to connect all types of writing paper with the digital world and C-Pen(R) -- a scanning pen that can store, interpret and transfer printed text. The Anoto Group has around 110 employees, offices in Lund (head office), Stockholm, Boston, Tokyo and Hong Kong. Major shareholders are Ericsson, Capital Group and Logitech International S/A. The Anoto share is traded on the O-list, Attract 40 of Stockholmsborsen (Stockholm Stock Exchange) under the ticker ANOT. For more information: www.anotogroup.com

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