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Press release - 5 May 2004

CapMan and Reiten & Co finance the internationalisation of Norwegian EuroProcessing International ASA

Mezzanine funds managed/advised by the Nordic private equity investor CapMan will provide the Norwegian transaction processing company EuroProcessing International ASA (EPI) with a mezzanine facility of up to EUR 10 million. Together with an add-on investment from EPI’s majority owner, the Nordic private equity investor Reiten & Co Capital Partners V (RCP V), a total of EUR 16 million of junior capital will be invested for financing further international growth of EPI.

EPI was established in early 2000 to participate in and develop the fast growing cards and electronic payments’ markets in the Baltic States and Central and Eastern Europe. EPI acquired the Latvian BankServiss in 2000 and the Lithuanian Mokejimo Korteliu Sistemos (MKS) in 2001. On 15 January 2004 EPI announced the acquisition of a majority interest in Transacty, the leading Slovakian transaction processing company. Despite its short history, EPI has a track record proving high and profitable growth and a strong position in selected market areas.

“The mezzanine facility provided by CapMan combined with the add-on investment by and RCP V will constitute a solid financial base to further develop and expand our operations and services provided,” says EPI’s CFO Sven T. Ottesen.

CapMan recently established an office in Norway, and is now present in all the Scandinavian countries. CapMan has previously arranged several mezzanine facilities, but the investment in EPI is the company’s first mezzanine arrangement in Norway.

“EPI’s financial position is very good and it has an excellent management. The fast growth of the targeted markets combined with a strong market position provides good groundings for our investment and the company’s future development,” says CapMan’s Partner Markus Sjöholm.

RCP V entered into EPI in May 2003, and has been very pleased with the development of the company. As a result of the add-on investment, RCP V’s stake in EPI will increase to 62,6 per cent.

“EPI is in a very interesting development phase and as the main shareholder we are pleased to be able to contribute to the establishment of a sound financial platform for the company. In addition we are happy to see that CapMan acknowledges the accomplishments and wishes to support us in the development of the company,” says Managing Partner Kathryn Baker in RCP V.

EPI provides transaction processing services including authorisation processing, clearing and settlement, management of POS and ATM terminal networks, card management, card personalisation and fraud monitoring to national and international banks.

EPI’s headquarters are in Norway and the top management is Norwegian. However, the company does not have any business operations in Norway. The management has a combined total of 40 years experience in the cards and payments industry and has been involved in the acquired businesses since their start in early 90s. In addition, the management has a strong track record in M&A activities.

For additional information, please contact:
Mr Markus Sjöholm, Partner, CapMan, tel. + 358 9 6155 8312 or + 358 40 508 0121
Mr Sven T. Ottesen, CFO, EuroProsessing International ASA, tel. +47 22 53 54 00
Kathryn Baker, Chairman of the Board of EPI and Managing Partner, RCP V, tel. +47 23 11 37 00

CapMan Group

CapMan is one of the leading private equity investors in the Nordic countries and specialises in mid-sized buyouts in various industry sectors, technology investments in the IT and telecommunications sectors and investments in life science companies. The CapMan team comprises around 80 people in Helsinki, Stockholm, Copenhagen and Oslo. CapMan manages/advises funds with approx. EUR 1.7 billion in total capital, of which approx. EUR 560 million is managed by the affiliated company Access Capital Partners, which invests in European private equity funds. To date, the funds managed by CapMan have invested in 140 companies in the Nordic countries and exited from 60 companies. The latest investments are made in Swedish Technology Nexus Product Sourcing AB, Finnish Solid Information Technology Oy and Danish Anhydro Group A/S. CapMan Plc is listed on the Main List of the Helsinki Stock Exchange.

EuroProcessing International ASA (EPI)

EPI was established in early 2000 to participate in and develop the fast growing cards and electronic payments markets in the Baltic States and Central and Eastern Europe, through investing into domestic transaction processing companies. Today EPI owns Transacty in Bratislava, Slovakia, SIA BankServiss in Riga, Latvia and UAB Mokejimo Korteliu Sistemos (MKS) in Vilnius, Lithuania. It is the only processing company with full service operations in several CEE-markets and currently serving clients in Latvia, Lithuania, Slovakia, Serbia, Montenegro and Macedonia.

All companies in which EPI is an owner provide services for banks, financial institutions and merchants/ retailers in their local markets, enabling them to offer profitable, flexible and effective payment solutions. Services offered range from traditional card-based payment to virtual payment solutions for fixed and mobile devices.

EuroProcessing International AS (EPI) is owned by Reiten & Co Capital Partners V AS (RCP V) and Creati AS - a holding company owned by the current EPI management and private investors.

RCP V

Reiten & Co Capital Partners V (RCP V) is a private equity fund established in January 2002 with committed capital of NOK 500 million (EUR 60 million). RCP V has invested in the following 4 companies, all with a Nordic rationale; Factor Insurance Group ASA, EuroProcessing International ASA, PluggingSpecialists International ASA and Heimstaden AS.

The investors are Norwegian financial institutions, Norwegian and foreign wealthy individuals, family offices and Reiten & Co partners and employees. RCP V is the fifth fund established by Reiten & Co Strategic Investments AS, since the company began its private equity investments in 1996.

The value-creation strategy of the fund is carried out by providing capital, combined with strategic and financial competence, to companies with an established product, client portfolio, as well as a healthy financial position and competent management.

Reiten & Co Strategic Investments AS is the manager of the fund.

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