As  agreed by SAF Tehnika A/S and Viking Microwave AB on April 6, 2004,

the  parties  completed the asset purchase transaction on Tuesday, June

1.   SAF  has incorporated a wholly-owned subsidiary SAF Tehnika Sweden

AB,  which  now  owns  and  operates  the  assets  acquired from Viking

Microwave.

As  already  was  reported before in press release on 7 April 2004, SAF

Tehnika  had  signed an agreement on acquisition of assets and business

from  Viking  Microwave  AB in Sweden. The main reason for the deal was

that  it will allow SAF Tehnika to significantly strengthen and improve

its  R&D capacity. While SAF Tehnika has been focusing on low-to-medium

capacity  PDH  radios,  Viking's  core  strengths lay in development of

spectrum   transfer   radios   used   in  spectrum  efficient  PDH  and

high-capacity SDH radiolinks.

Viking  Microwave  AB, founded in 1994, is a wholly owned subsidiary of

Viking  Telecom  AB  (publ), a public company quoted on Stockholm Stock

Exchange  O-list  under  ticker  symbol  VIKT.  The deal enables Viking

Telecom  to  focus  on  its  core  business,  products  and systems for

messaging  services  in  the  fixed  telecom network, as well as router

products & systems for voice telephony.

SAF  Tehnika  was established in 1999 and has since then grown into one

of  the  leading  high-tech  companies in the Baltics. The company is a

quoted  on  Riga  Stock Exchange official list under ticker symbol SAF.

SAF Tehnika recorded sales of EUR 7.5 million and net profit of EUR 1.3

in financial year 2002/2003.



For comments, please call.

Normunds Bergs, CEO, +371 704 6840

Aleksis Orlovs, CFO, +371 704 6825