The Extraordinary General Meeting resolved on the redemption proposal of SEK 561 million

The Extraordinary General Meeting resolved on the redemption proposal of SEK 561
million

At the Extraordinary General Meeting of Teleca AB held on June 20, 2007, the
Board's proposal was approved to execute an automatic redemption through a share
split of 2:1, of which one share is redeemed by Teleca for SEK 9 per share.
Record date for the share split and right to redemption shares was set at July
12, 2007. The final date for trading in the Teleca share including the right to
receive redemption shares will thus be July 9, 2007. Payment of the redemption
amount is expected to occur on August 13, 2007.

The EGM resolved, in accordance with the proposal of the Board, to carry out a
redemption procedure, including amendments to the Articles of Association, a
share split, a reduction in the share capital through retirement of shares and
increase in the share capital through a bonus issue. The decision essentially
entails the following: 
Each share will be split into two shares (2:1 share split) of which one will be
a designated redemption share and will be redeemed for SEK 9. The number of
shares of each class as stated in the Articles of Association has been adjusted.
The record date at VPC for implementation of the share split is July 12, 2007. 

The Company's share capital will be reduced by SEK 56,139,729.30 (the reduction
amount) through the redemption of 655,000 class A-shares and 61,722,477class
B-shares, each with a quota value of SEK 0.90 (after share split). The shares to
be redeemed are the shares which after the implementation of the share split in
accordance with above are named redemption shares. The purpose of the reduction
of the share capital is repayment to the shareholders. For each redeemed share
(irrespective of class), a redemption price of SEK 9 is to be paid (i.e. SEK
8.10 per share in excess of the quota value). The total redemption amount then
amounts to SEK 561,397,293. The Company's share capital is increased by SEK
56,139,729.30 by way of a bonus issue from non-restricted equity. No new shares
will be issued in connection with the increase of the share capital.

For further information, please contact: 
• Christian Luiga, CFO, Teleca AB, mobile +46 703 75 16 04
• Mattias Stenberg, Investor Relations Manager, Teleca AB, mobile +46 706 11 96
16 


Teleca is a world-leading supplier of software services to the mobile devices
industry. This includes systems design and the integration of software and
hardware for mobile phones; there are also tailored solutions. We are around
2,000 experts in 11 countries in Asia, Europe and North America. Teleca is
quoted on the Mid cap list of the Nordic Exchange.