STOCKHOLM -- Song Networks Svenska AB, the Swedish subsidiary of Song Networks Holding AB (Stockholmsborsen: SONW) has concluded a framework agreement with Labs2 for the supply of data communications. The new agreement is the result of rapid growth in new customers for Labs2, which created the need for new infrastructure solutions. The agreement is worth SEK 7 million for 2004 and will run over 3 years.

Labs2, headed by Jonas Birgersson, has chosen an Ethernet VPN solution from Song Networks with a capacity of up to 1 Gbit/s. Such high bandwidth is essential for an enterprise that offers systems and functions aimed at city ring owners and network operators throughout the Nordic region. Besides being able to offer better prices for broadband and telephony, the objective will be to create a neutral and open standard between service providers and infrastructure owners.

"We have experienced rapid growth in new customers, and need a simple, flexible and easily-administered infrastructure to be able to handle and develop our customer relations. Labs2 must lead the way in the development of better and cheaper broadband services, and this new agreement creates even better conditions for us to be able to achieve that aim," said Jonas Birgersson, CEO Labs2.

"Labs2 is a customer that demands high levels of Internet capacity and high bandwidths between locations. That's why we are particularly pleased that they chose us as their supplier," added Mats Almgren, Sales and Marketing Director Song Networks.

As part of the new agreement, several of Song Networks' data centres will be used for local siting of equipment to ensure best possible redundancy and security.

Song Networks Holding AB