HMS Networks

M&A Activity • Apr 13, 2012

PRESS RELEASE

Halmstad, April 13, 2012

HMS receives 6 MSEK order.

As previously reported, HMS Networks AB (publ) has signed a blanket agreement with one of Europe's leading manufacturers of automation equipment. The agreement concerns communication equipment for the Industrial Ethernet network "Ethernet POWERLINK". In this case, the HMS technology has been customized to meet the demands of this specific customer. The HMS customer is currently launching its new product after which continual deliveries will commence. As a result, HMS received an order for 15,000 pieces for delivery during 2012 – 2014, equaling a total value of approximately 6 MSEK. This will be reported as order intake during the second quarter.

"The customization of our Anybus technology to this customer-specific application was performed according to plan and our customer is now commencing the production phase. According to our customer, the product has been well received resulting in higher volumes than expected" says Eric Halvordsson, Key Account Manager at HMS.

Ethernet POWERLINK is a technology developed by B+R in Austria and has during recent years received more and more recognition from large machine manufacturers. The technology delivers a substantially higher performance than the standardized Ethernet technology used in office- and commercial applications. This performance is required to accomplish the demands that advanced machine manufacturers have on industrial networks.

"The fact that we have accomplished this technical development in a short period of time and that we are now entering the production phase with this customer confirms our ability to meet high-level demands. Our customer delivers to very demanding machine manufacturers who are always looking for the optimal combination of performance, reliability and innovation. We can see that the market for Industrial Ethernet is picking up speed, but also that this market segment is getting even more fragmented. Today, there are five major technology standards in this area with different hardware and software. Our Anybus® concept supporting the majority of the important communication protocols benefits from this situation" says Staffan Dahlström, CEO at HMS Networks AB.

For more information please contact:

CFO HMS Networks AB Gunnar Högberg, telephone: +46-35 17 29 95 CEO HMS Networks AB Staffan Dahlström, telephone: +46-35 17 29 01

HMS Networks AB (Publ) is a world-leading supplier of communication technology for industrial automation. Sales for the last twelve months totaled SEK 384 million. Over 90% of these sales were to customers located outside Sweden. All product development and parts of the manufacturing are performed at the head office in Halmstad. Sales offices are located in Tokyo, Beijing, Karlsruhe, Chicago, Milan, Mulhouse, Pune, Coventry and Copenhagen. HMS has 240 employees and produces network interface cards and Gateways to interconnect different networks under the trademark Anybus® and products for remote management under the trademark Netbiter®. HMS is listed on NASDAQ‐OMX Nordic Exchange in Stockholm in the category Small Cap, Information Technology.