Tilgin appeals new customs duty decision


Tilgin appeals new customs duty decision

As previously announced, the Swedish Customs imposed customs duties on Tilgin in
March 2007 and July 2008 and initiated an audit regarding additional imports. As
expected, Tilgin has now received imposed customs duties of approx SEK 10
million on the additional imports. Tilgin appealed the first two decisions to
the County Administrative Court and will appeal this claim as well. If Tilgin
were ultimately to incur any customs duties, the company intends to claim
compensation from the relevant customer.

The new claim applies to seventeen imports of Tilgin's IPTV set-top boxes during
2005 and 2006 and amounts to approximately SEK 10 million whereof approximately
SEK 70 thousand is VAT. With this claim, the Swedish customs has made claims for
customs duties for all imports of these products.

Tilgin's position is that the Swedish Customs has no basis for its claims and
that the customs duty imposed is incorrect. Therefore, Tilgin appealed the first
two claims to the County Administrative Court. Tilgin was granted postponement
of payment until the Court delivers its final judgment, which still has not
occurred. Tilgin will appeal also this new claim and require postponement of
payment until the Court delivers its final judgment in the matter.

”The Swedish Customs claims customs duties based on a different classification
of the products than Tilgin. We contest their claims and it is now up to the
County Administrative Court to try the matter. We feel confident that they will
share our view on the classification and we hope for a fast process,” says Ola
Berglund, CEO of Tilgin.

Tilgin estimates that the trial in the County Administrative Court will take
place this year.

Customs duties are excluded from the price in the customer agreement that
applies to the relevant imports. If Tilgin should ultimately incur any customs
duties, the company intends to claim compensation from relevant customer with
respect to the amounts that the company may have to pay.

The products in question are now being manufactured within the European Union
and deliveries from the relevant manufacturer to customers within the EU
originate within the duty free area of the European Union.

― End ―

Tilgin makes this information public in accordance with the Swedish Securities
Exchange Act and/or in accordance with the Swedish Financial Supervisory
Authority


For further information: 
Katrin Buhre, IR-Manager Tilgin
Telephone: +46 8-572 386 86
E-mail: katrin.buhre@tilgin.com

About Tilgin 
Tilgin designs and delivers premier IP customer premises equipment (CPE) for
advanced Triple Play and IMS-based services. Supporting the full convergence of
voice, video and data, Tilgin takes a network systems approach to CPE that
enables service providers to offer a broad range portfolio of innovative and
competitive broadband services. Tilgin's comprehensive product portfolio of IP
residential gateways, set-top boxes and related management applications, offers
service providers unprecedented return on investment - delivering new service
revenues and impressive cost savings over the lifetime of the product. Tilgin
was founded in 1997 under the name i3 micro technology and listed on the
Stockholm Stock Exchange on the Nordic List as of December 2006. It is
headquartered in Kista, Sweden, with European sales representation in France and
Germany. www.tilgin.com

Attachments

09172254.pdf