Sweden's B2 Acquires Bostream

STOCKHOLM -- B2 Bredband AB (B2), Sweden's second largest broadband provider, today announced the completion of its acquisition of broadband rival Bostream. Founded in 1998, Bostream has enjoyed strong growth resulting in it posting profitability for three consecutive years. Last financial year, 2003/04, the company recorded net sales of SEK 372 million (EUR 40 million).

This acquisition will significantly alter the dynamics of the Swedish broadband market, with B2's market share growing from 16% to 26%. B2 plans to move the majority of Bostream's 104,000 subscribers to its own network, increasing B2's profitability and strengthening its challenge to market leader, TeliaSonera.

Peder Ramel, CEO of B2, said: "This acquisition sees the unification of Sweden's fastest growing broadband service providers. We will offer our combined subscriber base, comprising of more than 275,000 customers, an even faster broadband service, with speeds up to 24 Mbit/s, and a highly competitive pricing structure. We are excited to begin moving forward as one company- with a proven track record of innovation, service and success."

"B2 and Bostream are both recognised as leaders in technology, highlighted by B2's close partnership with Cisco that has enabled it to become a world leading provider of Internet Telephony, with 55,000 residential subscribers," said Ramel. "Our ongoing commitment to investment in both networks will allow us to continue to deliver innovative and affordable services to Swedish households."

CEO of Bostream, Richard Burston said: "After building Bostream into the largest independent provider of DSL broadband in Sweden, I am now pleased to see the creation of a strong, new competitor to TeliaSonera. Our two companies are exceptionally compatible, sharing the same vision- to deliver market leading and attractively priced broadband solutions across Sweden."

Bredbandsbolaget AB (B2)