Bure carries out a redemption program

In a press release from 30 October, 2006, Bure has announced that a capital distribution of SEK 1,400 million will be carried out to the shareholders. The Board has decided that the capital transfer will take place through an optional redemption program. The payment to the shareholders is expected to take place in August 2007.

Bure announced in October 2006 that the company within the coming year intends to distribute a sum of around SEK 900 million. In addition, the anticipated proceeds from exercise of the outstanding subscription warrants, around SEK 500 million, will be retransferred to the shareholders. In the previous announcement it was stated that Bure is currently evaluating the available methods for carrying out this capital distribution.

After a thorough analysis of the different possibilities that are at hand for the distribution, the Board has made the assessment that an optional redemption program is the method to prefer. The redemption program will be carried out in the period after the expiry of the exercise period for the outstanding subscription warrants on 15 June 2007, and the payment to the shareholders is expected to take place in August 2007.

As a part of the total amount for the capital distribution, the existing mandate for buy-back of shares, at present around SEK 195 million, and the warrants, SEK 300 million, might be used as a method as part of the program to the extent market conditions are favourable and legal possibilities are in place.

The Board has in its analysis had the objective to carry out the capital distribution as soon as possible. At the same time, the equal treatment between shareholders and warrant holders was the most important issue. Due to Bure’s complicated capital structure of today, the Board has concluded that the most efficient process can be carried out after the expiry of the exercise period for the warrants on 15 June 2007. Any earlier repayment would have meant considerably more complicated solutions and it would also have required two redemption processes.

The redemption program will be presented the annual general meeting of Bure for decision in April 2007. The annual general meeting will also be proposed to decide about a reverse split. In addition to that there will be addressed an offer to shareholders with limited holding to sell their shares commission free.

Gothenburg, 19 December 2006
Bure Equity AB (publ)



wkr0019.pdf