COPENHAGEN, Denmark, Aug. 22, 2001 (PRIMEZONE) -- Olicom A/S (OTC BB:OLCMF) ("Olicom" or "the Company") today announced that it has invested in the Swedish company,Scalado AB, which has developed software for creating, transferring, and presenting image-based digital information. The funding has been provided in syndication with the Swedish venture capital firm, TeknoSeed AB. Olicom has initially committed DKK 6.4 million ($0.8 million) in return for 22.2% of the shares in Scalado. Contingent upon Scalado meeting certain milestones, Olicom will make an additional investment in second quarter 2002 of DKK 9.6 million ($1.1 million) thereby increasing Olicom's holding to a minimum of 29.8%.
Scalado has developed patent pending solutions for rendering and transferring digital image information independent of communication technology. Scalado's Image Zoom software minimizes the amount of data sent from a web server when a visitor views an image and provides unique zooming functionality. Both image presentations on the Internet and within the emerging market for mobile data communication will benefit from the minimization of bandwidth. The software aims at professional content providers, delivering static and dynamic data over the Internet. It holds a full set of design features, enabling update of all information dynamically by the use of databases connected over the Internet.
"Companies like Scalado, located in the Ideon Research Park in Lund and other parts of Southern Sweden, often find it easier to cross the bridge to Denmark than flying to Stockholm to talk to investors," said Pierre Elzouki, Scalado's CEO. "We prefer a daily dialogue with our investors and in this connection proximity is of major importance. Even though we had several investment offers, we preferred Olicom because of their proximity and in depth knowledge in the data communications field."
"Scalado's technology solves one of the most important issues related to transferring images on the mobile Internet - the bandwidth problem," explained Boje Rinhart, President and CEO of Olicom. "The bandwidth available for mobile handheld devices will for a foreseeable future be very limited and this has proven a major hurdle especially when it comes to transferring graphical data. Scalado's technology will solve this."
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 mobile data communication. 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 Web site at www.olicom.com. Olicom is a registered trademark.
About TeknoSeed
TeknoSeed has a strong position as Seed Capital provider in southern Sweden. The business concept of TeknoSeed is to make early-stage investments in research based companies deemed to have a high growth potential on the global market. Apart from capital, TeknoSeed contributes with experience in financing and an extensive network. Since its inception in 1997, TeknoSeed has made over 20 investments in companies within the Life Sciences, IT and Technology areas. Read more about TeknoSeed at www.teknoseed.se
About Scalado AB
Scalado AB (formerly CVision AB) was established in 2000 and is located in the recognized Ideon Research Park in Lund. Scalado develops and markets software for creating, transferring and presenting image-based digital information. For more information about Scalado and a demonstration of the company's products see www.scalado.com.
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.