STOCKHOLM -- The Board of Directors of Dynarc AB (publ) has decided to file for bankruptcy. Due to financial difficulties during the autumn of 2001, Dynarc entered into a formal reconstruction on October 17, 2001. Together with the Board of Directors and the executive management team of the company, the appointed reconstructor and trustee developed a new business plan aiming at reducing the business risk and reducing the cost level of the operations. As a consequence, Dynarc downsized its operation during the fourth quarter to approximately 30 employees. To support the reconstruction process, the company managed to secure a bridge funding of MSEK 20 during December 2001. A successful settlement procedure with the company's creditors was an important foundation when presenting a reconstructed Dynarc to its shareholders. In the beginning of March 2002, the Board presented a prospectus describing Dynarc's new business plan. The prospectus offered existing shareholders and new investors to participate in a new share issue of MSEK 40. Despite extensions of the subscription period, the new share issue did not result in enough capital injection to execute on the business plan. In parallel, the Board initiated sales of the company's component inventory. These efforts were not enough to secure a going concern of the company. "The reconstruction of the company has been a tremendously hard, but also strengthening process. In spite of the difficult circumstances, our customers, partners, investors and employees have been deeply involved and engaged in the process. The fact that lack of liquidity now leads to bankruptcy is extremely tragic", says Olov Schagerlund, President & CEO Dynarc AB. Dynarc