Framfab moves into growth phase via partnership with SBI and announces management changes and restructuring charges

STOCKHOLM, Sweden, Nov. 17, 2003 (PRIMEZONE) -- Framfab moves into growth phase via partnership with SBI and announces management changes and restructuring charges

With a total of some 1,300 employees, Framfab and SBI Group (USA) will be one of the world's leading players in communications for digital media and interactive solutions with the ability to serve global customers in Europe and the United States. Framfab is carrying out a series of measures designed to take advantage of the potential in the new market cooperation with SBI Group, Framfab's largest shareholder.

Last week's special meeting of Framfab shareholders approved the deal with SBI Group. Framfab is now taking the next step to become one of the most effective players in global communications for digital media and interactive solutions. To integrate the acquired London operations with the Group and to build a platform for the cooperative venture, the board has appointed Steve Callaghan as CEO of Framfab AB as of January 1, 2004.

Framfab will take the charges associated with the management changes in the fourth quarter. Framfab's Danish, Swedish and UK businesses have been profitable. Framfab Netherlands will work closely with the UK business to exploit synergies. However, the weak German economy has affected profitability in that country. As a result, Framfab Germany has started to take cost effectiveness measures. These measures concern the branch in Frechen/Cologne. Given the restructuring charges and the costs in Germany, Framfab will post a loss in the fourth quarter.

Framfab's board has resolved to carry out the following management changes:

- Steve Callaghan, Managing Director of Framfab UK, will take over as CEO of Framfab AB on January 1, 2004

- Christian Luiga, Framfab's CFO, will be Executive Vice President of Framfab AB as of January 1, 2004

- Jesper Andersen, Managing Director of Framfab Denmark, will also be Managing Director of Framfab Sweden effective immediately

- Thomas Elkan Boisen will be Corporate Controller, reporting to Mr. Luiga, effective immediately.

Mr. Callaghan, Managing Director of Framfab UK, says, "Our strategy remains one based on a continued focus on our large multinational client base. We have already extended UK client relationships into Framfab Europe through our business combination, and will continue to work in this way with SBI US clients in Europe."

Anders Ekman will leave his post as CEO of Framfab AB and his board assignment on December 31, 2003.

Mr. Ekman, CEO of Framfab AB, says, "We have refined and clarified Framfab's image and service offering. We have put our house in order by improving our processes and business control. We have strengthened the company's position by means of a special issue of new shares to large new financial shareholders, we have obtained a new principal industrial shareholder, and we have cautiously initiated a growth phase by acquiring parts of Icon Medialab's operations in Denmark and SBI in London. Now that Framfab is entering a new stage, I feel comfortable handing over the baton at the end of the year."

Sven Skarendahl, board chairman of Framfab AB, adds, "Under difficult market conditions, Mr. Ekman has expertly implemented for Framfab key structural changes that pave a way for additional growth.

About Mr. Callaghan:

Mr. Callaghan has been Managing Director of SBI's UK operations. Prior to that, he headed Northern European operations of the IBM Global Services outsourcing business for the Retail & Distribution Industry Sector. Mr. Callaghan has a BSc Eng (Hons) from Cranfield University.

For photos of Mr. Callaghan,Mr. Andersen, Mr. Ekman and Mr. Luiga please e-mail to Tobias Bulow, Framfab's Group Communications Manager, at

For additional information, please contact:

Sven Skarendahl, Chairman, Framfab AB +46 8 41 00 10 00,

Anders Ekman, CEO, Framfab AB +46 8 41 00 10 00,

Steve Callaghan, Managing Director, Framfab UK +44 77 71 92 12 10,

Tobias Bulow, Group Communications Manager, Framfab AB +46 709 41 22 58,

Framfab is a leading European specialist in digital media solutions and communication based on Internet technology. Most of Framfab's customers are large international companies, including 3M, AXA, the Coca-Cola Company, Danske Bank, Ericsson, Hydro Texaco, IKEA, Kellogg's, NEC Packard-Bell, Nike, Observer, Postbank, SAAB, Volvo Car Corporation and UBS. Framfab operates in Denmark, Germany, the Netherlands, Sweden and Switzerland. The company is quoted on the O list of the Stockholm Stock Exchange (ticker symbol FRAM). For more information, please visit

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