COPENHAGEN -- At an extraordinary meeting held today, GN Great Nordic's Board of Directors approved an agreement to acquire the French company Photonetics S.A. The company will become a part of GN Nettest, making this GN Great Nordic division the world's absolute leading provider of equipment and systems for testing and surveillance of optical communications networks. In connection with the acquisition the Board also resolved to list GN Nettest through an IPO expected to take place in the first half of 2001.

The parties have agreed to an acquisition price of USD 1,050 million, of which USD 735 million will be paid in cash while USD 315 million will be paid with new GN Great Nordic stock. The number of new shares to be issued to the sellers will be determined on the basis of the average share price over the last five business days before the transaction is closed. The parties have also agreed on an additional payment of up to USD 100 million to the sellers should GN Nettest achieve a particularly attractive market capitalization at the IPO. The additional consideration will be paid with GN Nettest shares.

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