Transmode to IPO

STOCKHOLM -- The Board of Directors of Transmode (the "Company") and its significant selling shareholders have decided to diversify the ownership of Transmode's shares through the sale of existing shares (the "Offering"). In connection therewith, the Board of Directors has applied for listing of the Company's shares on NASDAQ OMX Stockholm. The Offering consists of an offering to the public in Sweden and an offering to institutional investors in Sweden and internationally.

Transmode is a provider of networking solutions which enable fixed line and mobile network operators to cost effectively address the increasing capacity needs created by the rapid growth in video and data traffic. The Company's solutions serve as important building blocks in next-generation high speed optical networks that support services such as broadband backhaul, mobile data backhaul, video and cloud computing. Transmode focuses on providing solutions to customers in the metro networks segment, utilizing WDM technology and technology for packet optical transport. Customers include large tier 1 and incumbent operators (e.g. Telenor), mobile operators (e.g. 3 Scandinavia), cable TV operators/multiservice operators (e.g. Virgin Media), other alternative operators and enterprises (e.g. OMX). To date, Transmode has completed over 20,000 deployments of the Company's products globally, for more than 300 different customers.

Karl Thedeen, CEO, comments, "Since 2000 Transmode has grown to become one of largest vendors of telecoms equipment in Sweden. Over the past four years the company has almost doubled its revenues to SEK 699 million in 2010. We have generated profitable growth and in 2010 we delivered to customers in 38 countries. A listing of the Company's shares is a logical and important step in Transmode's development, and will help support our global expansion and further increase awareness for the Company. We stand ready to continue our strong expansion and will be pleased to do so as a listed company."

Transmode Systems AB