Transmode Wins 'leading IPO Candidate' Award

NEW YORK, US, and STOCKHOLM, Sweden - October 22nd 2008 - Transmode, a leading provider of optical network solutions was Monday night named as the telecommunications industry's "Top IPO or M&A Candidate" at the Leading Lights Awards. The award acknowledges the business performance and technology achievements of Transmode over the past 12 months and the company's future potential.

Transmode was presented with this prestigious award by a panel of editors from the world's largest online news service Light Reading and analysts from subsidiary market research organisation Heavy Reading. Transmode has been short listed in previous years' Leading Lights Awards but led the field in this, the fifth such ceremony.

The Leading Lights Awards recognize public and private telecommunications companies for their outstanding achievements in next-generation communications. The Top IPO or M&A Candidate award is given to the private company, which, in the judgment of the panel, "most clearly has the management, products, and financial stability to launch a successful IPO or be acquired on its own terms during the next 12 months".

Transmode was in good company as a winner of one of this year's Leading Lights Awards as other winners of other categories included Nokia Siemens Networks, Cisco and Nokia.

Karl Thedéen, Transmode's CEO said "We are proud to receive this award, which is important because it is ultimately a quality stamp on our performance which customers will recognize. Furthermore, it is an independent acknowledgement of our products and operational performance over the past 12 months and has credibility because it is determined by leading industry editors and analysts."

"Transmode is currently enjoying a great combination of satisfied customers, market-leading products and a solid financial performance. Therefore we expect customers to continue to choose Transmode to be their supplier in the Metro WDM space."

"It is a pleasant surprise to have won this prize, which we haven't really been focused on. Our main aim is to run our business as well as we can. The business is expanding, we have satisfied customers and the Transmode team and owners are very happy," he added.

In a recent interview with Light Reading, Thedéen said his company's strategy of focusing on the Metro WDM segment has been paying off as the company is now improving its position in the tier1 segment. Transmode is focused on profitable growth and reported a 21% sales growth in 2007. The company is also expecting further healthy growth this year.

Transmode reports "world-class" Customer Satisfaction

The Leading Lights Award recognition coincided with Transmode receiving a resoundingly positive endorsement from its customers in the customer satisfaction survey, recently performed by renowned CFI - Claes Fornell International - Group. Transmode was assessed to be a "world class" business following a survey of its customers and value added resellers (VARs).

The survey was conducted by CFI Group in the summer of 2008.

One of the key aims of such surveys is to gain a greater understanding of the perception of the company's products and performance - according to the views of customers and business partners. CFI Group has a well-documented library of results from large international companies. The index used is the same as Swedish SKI (Svenskt Kvalitets Index) and ACSI (American Customer Satisfaction Index), established by Claes Fornell, professor of Business Administration at the University of Michigan, USA.

"Transmode's score of 81 out of 100 is clearly world-class for a B2B company", says Mats Frid, Managing Director of CFI Group and continues ; "The main drivers of Transmode customer satisfaction were found to be the competence and commitment of the staff in front line functions such as technical support and sales, the reliability and performance of the products and the progressive image of the company."

About the Leading Lights Awards Light Reading's Leading Lights Awards, established in 2004, are the most respected industry awards program, through which the top companies and their executives are recognized for their outstanding achievements in the communications industry.

The Leading Lights Awards were announced at a special gala dinner on Monday, October 20, 2008, following the first day of Light Reading's Ethernet Expo in New York City.

Why do the Leading Lights Awards matter? Because Light Reading's reputation for fiercely independent analysis instantly makes this the most credible and authoritative awards program in the industry.

About CFI - Claes Fornell International - Group CFI Group uses the science of customer satisfaction to turn "voice of the customer" data into strategies for measurable results. Claes Fornell is the world's leading authority on customer satisfaction measurement and Customer Asset Management. He is the mind behind the ACSI - American Customer Satisfaction Index and many similar indices worldwide, the founder and chairman of CFI Group and Foresee Results and the Donald C. Cook Professor of Business at the Stephen M. Ross School of Business, University of Michigan.

About Transmode Transmode is a leading provider of optical networking solutions for transport of data, voice and video traffic, based on WDM-technology (Wavelength Division Multiplexing). Our customer base consists of more than 200 network operators, service providers, large enterprises and public institutions across Europe, the Americas and Asia.

Transmode's comprehensive product portfolio and strong global organization enable our customers to cost efficiently grow the capacity and to improve service level of their regional, metro and metro access networks, without compromising on functionality.

For additional information about Transmode, please visit www.transmode.com

For more information please contact: Ola Elmeland, Vice President Marketing & Communications Transmode Systems AB Telephone: +46 8 506 882 71 Email: ola.elmeland@transmode.com

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

Transmode

http://www.transmode.com

Stock Identifier: SSE.TRANS