Incentive scheme

Introduction of a global incentive scheme

The Annual General Meeting of 3 June 2008 adopted the Board’s proposal to set up an incentive scheme – the 2008 Incentive Scheme - in line with the principle terms and guidelines defined below. The scheme is schedule for implementation in the autumn of 2008.

Background, description, etc.

The company currently has an incentive scheme for convertible shares. These convertible shares were issued in 2005 and this incentive scheme will soon come to term. Convertible shares can be converted to Class B shares in the Company during the period 1 May 2008 to 15 June 2008 at a conversion rate of SEK 63.50 per share. In the event of a full conversion, 290,000 shares will be created resulting in a 2.1 per cent dilution. The company lacks other share-related incentive schemes at this time.

An incentive scheme that gives the employee the long-term opportunity to be part of the Company’s growth in value is expected to stimulate greater dedication and elevate motivation for those participating and will bind those involved more closely to the ITAB Group. Moreover, an incentive scheme is expected to boost the sense of affiliation between the subsidiaries and thereby generate a more Group-wide focus. It is the Board’s belief that the incentive scheme will prove beneficial to both the employees covered by the scheme and the Company's shareholders. Moreover, it will improve our ability to recruit and retain competent colleagues.