FME EUROPE AB

FME EUROPE AB

Previous company name
FLY ME EUROPE AB
Name change date
7/23/2007
Company Overview
Fly Me Europe AB, with registered head office located in Gцteborg, Sweden, is a public quoted company that is principally engaged in the operation of low-cost airline. The company was previously known as Array AB.
The company operates a fleet of four Boeing 737-300s that provide scheduled flights within the domestic market of Sweden and Finland from five airports. Fly Me operates the routes in Sweden, from Arlanda Airport in Stockholm to Gothenburg, Malmo, Ostersund, and Helsinki. The company also provides a facility that offers booking services on hotel accommodations and hire private cars online.
In March of 2005, Fly Me started direct flights from Landvetter Airport in Gothenburg, Sweden to 11 destinations in Europe.
Business Summary
FME Europe Aktiebolag is a sweden-based low-cost airline.
Description and history
FME Europe Aktiebolag ( formerly Fly Me Europe AB ) is a sweden-based low-cost airline. The Company operates a fleet of four Boeing 737-300s to provide scheduled flights within the domestic market and Finland from five airports. Fly Me operates the routes in Sweden, from Arlanda Airport in Stockholm to Gothenburg, Malmo, Ostersund, and Helsinki. On March 30, 2005, Fly Me started direct flights from Landvetter Airport in Gothenburg, Sweden to 11 destinations in Europe. The Company provides a facility, where you can book your hotel and hire cars online. Fly Me Europe changed its name from Array AB on February 25, 2004, and wholly owns the subsidiary Fly Me Sweden AB. Its head office is located in Gothenburg, Sweden.

It changed its name from Array AB on February 25, 2004, and wholly owns the subsidiary Fly Me Sweden AB. Its head office is located in Gothenburg, Sweden. Fly me Europe AB ser. B (Ticker: FLY B) listed on First North Market with effective August 29, 2006.

Change name
The company change name to FME Europe Aktiebolag with effective from July 30, 2007.

Delisting
The company delisted on the First North with effective from November 12, 2007.

HISTORY
The company is focused on the Array Controllers business area, which exploits its exclusive sales rights to printer applications for NISC processors.
The operations of the Printing Technology business area, which exploits its TonerJet printer technology, are now limited to management of the patent portfolio.
The company also owns over 40% of the share capital in Imsys AB, which holds the copyright to NISC processors and markets them for applications other than printers. The purpose of this company’s ownership is to ensure long-term access to the NISC processor and influence its development.
It’s revenues in the Array Controllers business area will be generated from marginal contributions from processor sales, licensing royalties on software it has developed and compensation for development projects. In the TonerJet business area, any future revenues will be derived from license sales.

Array Controllers business area
This company develops printer controllers based on the NISC processor, which was developed by the associated company Imsys. The current processor generation is marketed by Imsys under the name ‘the Cjip.’
This company offers customers the ability to develop complete prototypes and manufacturing schedules for NISC-based printer controllers. Its core competence is its knowledge of image processing and printer controls, and how the advantages of the NISC processor can be optimized in this area. The focus of its work is the optimal integration of various hardware and software components. Less strategic development is done in large part with the help of consultants. The advantage of this type of organization is that fixed costs are low, at the same time that expertise in the use of NISC processors can be maintained internally within the company.
To offer customers complete solutions, Its establishes alliances with other companies.
During the first half of 2001, activities were concentrated, in cooperation with a supplier of a multipass laser printer, on the development and evaluation of a NISC-based printer controller’s performance, functionality and cost in comparison with a RISC-based controller. The project resulted in a documented competitive design that served as the basis of the ‘ArrayBIG’ reference product launched during the autumn.
Business concept
The business concept is to offer manufacturers of printer products technologies that facilitate products with a better price/performance ratio than those based on competing technologies.
The company’s customers can then offer end-customers products that are more attractive than the competition’s and thereby gain market share.
Objective
The objective of the Array Controllers business area is to build a business that is profitable in the long term by establishing this company as a leading supplier of competitive, innovative printer controllers for the printer industry. In the short term, the objective is to secure at least one revenue-generating contract with a printer supplier for the development of a NISC-based printer controller and that the first printer product with a NISC-based controller enters mass production in 2002.
The objective in 2002 is to further develop alliances with other companies, in part to broaden the product range and in part to increase market presence.
Strategy
The business strategy is to offer complete solutions and manufacturing schedules for printer controllers. In the short-term, the main focus is on securing a reference customer. The relatively fast-growing GDI/Windows segment for color laser printers has been identified as offering the best opportunity for quickly finding that customer and getting a NISC-based printer controller in production. A new product for this segment, ArrayBIG, was launched in the autumn of 2001.
Additionally, the strategy is to utilize alliances to offer customers more complete solutions. These alliances with established suppliers also bolster the company’s legitimacy in the market. With ArrayBIG, the company is cooperating in part with the British company Software 2000, the world-leading developer of driver device technology, and in part with the French company TakAsic, which offers solutions for JBIG image compression. This company plans to further expand its circle of partners.
As an element in discussions with partners, and to finance an expansion of its operations, the company may offer them the opportunity to invest in Array Controllers. Moreover, The company’s holding in Imsys is considered a financial asset that may, as part of the effort to finance future operations, be divested wholly or in part.
The product strategy in the short term is to develop an even more unique and attractive GDI product by better utilizing NIS’s image processing capacity. By letting a NISC-based printer controller handle most of the image processing work, the host PC’s CPU is relieved of the added load. There are several benefits for the customer, including better PC availability, faster print speeds and improved print quality.
In the longer term, its product range will be broadened through the development of new generations of NISC processors with improved performance and expanded functionality. The strategy is to take the lead in the development of a ‘controller-on-a-chip,’ whereby more of the functions currently handled by separate components are instead integrated with the NISC core on a new chip. As a result, the cost of future printer controllers can be dramatically reduced, at the same time that performance is improved. This, in turn, means that a larger segment of the market can be covered. One example of possible target markets for Array is the segment for network inkjet printers.
Technical comparison
The unique feature of Imsys processors is that they are reconfigurable, meaning that they have no fixed set of instructions. Because they can be loaded with any set of instructions, the processors need little development time to be optimized for various types of equipment. They offer a more compact solution than a standard processor, where much of the instruction set is fixed in the hardware and cannot be altered.
Standard processors include CISC (Common Instruction Set Computer), such as Intel’s PC processors, and RISC (Reduced Instruction Set Computer), such as PowerPC, ARM and MIPS processors. There is also DSP (Digital Signal Processor), which is used for sound and image processing, Java processors, etc. None of these processors can be termed reconfigurable.
The most common controllers in the printer market today are equipped with RISC-based processors, in combination with specially designed ASIC circuits. The advantage with RISC is that it is a proven technology. The disadvantage is that it is not an optimal printer controller and therefore needs the help of ASIC circuits to be acceptably cost-effective. The development of new, specially designed ASIC circuits is expensive and time consuming. Moreover, it entails complex solutions, which require many peripheral components.
The principal difference between a NISC processor and RISC processor is that the microcode (software) in the latter can be reconfigured.
NISC in printer controllers
There are several important advantages with NISC-based printer controllers:
Fewer components and lower production cost. More functions can be integrated in the processor software instead of on separate circuits. For the customer, this means less components and lower cost.
Shorter development time. It takes less time to develop a new printer controller when you don’t have to develop new hardware and instead can change functionality in the microcode.
Greater functionality. It is simpler and faster to add new functionality to a printer if it can be done in the software in a NISC processor rather than by specially designing ASIC hardware. This makes it easier for a printer manufacturer to offer new options or accommodate special applications.
Better relationship between price and print quality. In image processing, i.e. converting the image on a PC monitor to the information a printer needs to reproduce it on paper, the processor must perform a large number of calculations that in and of themselves are not complicated. The higher the resolution, the greater the amount of information. Thanks to its reconfigurability, NISC can be optimized to perform these calculations efficiently and can produce better print quality than more expensive RISC-based solutions.
TonerJet business area
Since the company was unable to secure customer financing for further research and Epson decided in March 2002 to discontinue its TonerJet project, it has terminated its own TonerJet research, and the operations of the business area are now limited to management of the patent portfolio.
TonerJet is a technique for dosing a small, predetermined amount of toner and transporting it through the air to a fixed location on the paper.
TonerJet’s attraction has been the possibility to manufacture color printers whose performance is comparable to that of laser printers, but which are smaller, lighter and have a lower cost structure.
The biggest obstacle to achieving this objective is that neither the company nor its licensees has been able to demonstrate that the technology can produce sufficient and predictable precision in dosing and positioning the toner, due to which the print quality has not been high or stable enough. The long-term objective has been to establish TonerJet as printing technology in the office market, but the likelihood that this will occur has diminished.
Strategy
The strategy is to manage the patents in a way that justifies their cost in relation to the likelihood that TonerJet can be commercialized in the foreseeable future. Given the Board of Directors current assessment, this essentially means that Array will retain only a small number of strategically important, prohibitive patents and allow the rest to expire.
Success factors, risks
For Array Controllers, the most decisive success factor is to ensure mass production of a competitive reference product. The first step to achieving this is to secure a reference in the form of a ‘design win,’ i.e. a customer that decides to develop a printer containing a NISC-based controller. Such decisions are usually made 6-12 months before production begins. Such a reference order would affirm Array Controllers business and Imsys processor technology, as well as improve opportunities for an expansion of the business.
There is a risk that a reference order could take time or that such an order in and of itself would not generate enough revenue. If so, bridge financing or other cost cuts would be necessary. The results of the business area’s marketing activities are continuously evaluated and on that basis it is decided to what extent the business will be continued and how it will be financed.
Establishing strong alliances is a key to the strategy. They help to strengthen the product range as well as its presence in the market. The objective is that these partners will also directly or indirectly participate in the financing of the operations.
Another success factor is that Imsys has the financial strength to develop new generations of NISC processors. One risk is that Imsys financing needs cannot be resolved. This would eliminate any prospects to pursue the operations of the Array Controllers business area in the long term.
For TonerJet to find a commercial application, and thereby generate licensing revenue for the company, some company will have to find a way to improve TonerJet’s print quality to an acceptable level, or that an alternative application area can be identified where the process’s current print quality is considered sufficient. There is a significant risk that this will not happen and that TonerJet thus will not be commercialized.

Delisting Annoucement by Stockholm
De-listing of paid subscription shares.
The paid subscription shares in Fly me Europe AB ser. B will be de-listed.
Tickercode: FLY BTB
ISIN code: SE0001294208
Order book ID: 25227
Last trading day is on January 27, 2005.

9/21/2006
First North: Trading in FlyMe Europe AB excluding rights and new round lot. (95/06)
As from September 27, 2006, FLY B shares will be traded excluding the right to participate in rights issue. The round lot for trading Fly Me Europe AB shares will also change as from September 27, 2006.

Terms:New share issue 3:1 rate SEK 0,65 per share
New round lot:5000
Short name:FLY B
ISIN code:SE0000237398
Orderbook ID:20554

Previously known as Array AB

Business Line
Engaged in the operation of low-cost airline
Subsidiary
FLY ME SWEDEN AB
Advisor
OHRLINGS PRICEWATERHOUSECOOPERS AB
IPO date
9/8/1999
US SIC Code
3579
Company Address
5tr.
Mцlndalsvдgen 24
City province or state postal code
412 63, GЦTEBORG
Phone: +46 31 301 10 00
Fax: +46 31 301 10 99
Country address: SWEDEN
Website url: www.flymeeurope.se