Mergers, Acquisitions and Financial Results

Andersen Advisory Group (AAG) has bought all the shares in Emperion and injected several million USD to fast track the continued growth of the company. Emperion has in the past few years obtained a substantial market share in Africa and the Middle East, but high growth rates require liquidity. This is now made available by AAG followed by execution of an aggressive strategy expanding Emperion´s market presence and product range.

In 2004 Emperion established the largest VSAT based network in Africa operated from its subsidiary in Nigeria. Emperion is also operating a number of networks for domestic and international banks and is presently servicing 6 out of the 10 largest banks in Nigeria including United Bank for Africa. Several Fortune 500 companies are also using Emperion´s IP network services to support their increasing activities in Africa/Middle East.

In addition to the NOC in Copenhagen, the Emperion Group also owns 99% of the subsidiary Emperion West Africa Ltd. in Lagos Nigeria and furthermore operates a branch office in Dubai, UAE. In total, Emperion today employs more than 70 people.

In addition to Emperion, AAG already has investments in the telecommunications companies’ v2tel, Mobilethink and Telecom Scandinavia. Mr. Michael Moesgaard Andersen expects that there will be substantial synergy benefits between these companies and Emperion.

Commenting on the deal while at ACT 2005, Niels Hyllested Andersen, Project Co-ordinator said:"With the new owner and capital, we can continue the strategy we have. We intend to invest in local teleports and domestic service networks to places like banks, government organisations and schools. The roll-out will be a combination of fibre and VSAT."

It is understood that the deal has paid out all of the company's creditors and bought out all of its existing shareholders. The company had been experiencing financial issues from rapid growth but the new deal leaves it free to pursue a strategy aimed at expanding its market. It now feels that it has reached a "critical mass" in terms of customers and that this will enable it to price-competitive.