Dear customer!

We are pleased to inform you that EPiServer AB has acquired Netstar AB. This letter serves to provide you with some more background and information about the acquisition.

The Swedish company EPiServer is the world’s fastest growing provider of Web Content Management (WCM) platforms. During 2007, EPiServer revenues increased by 37 % compared to the previous year. The acquisition is a strategic investment, part of a planned expansion and enables EPiServer to set new standards in Web Content Management area. As our client, you will have access to a unique solution which integrates Web Content Management and an on-line social community.

The acquisition is a response to a growing trend on the market, where customers clearly see the business value of social websites, for both public websites and intranets, as well as the advantages of connecting the community to the organization’s Web sites. Companies with strong brands, product or services which engage the customers, media companies and global companies with employees in many locations that are looking to create Web 2.0 intranets are examples of segments that we see will derive great benefits of this combination of web content management and community functionality.

Netstar and EPiServer have been close partners for several years and our products are already developed so that they can easily be used together. The Netstar products will be very central in the product packages EPiServer are planning. In the near future, StarCommunity will change its name to EPiServer Community. Our vision is still to provide the markets leading solution for on-line social communities and you will be able to buy EPiServer Community as a stand-alone solution.

Netstar’s 13 employees will work for EPiServer and Netstar CEO Gustav Lagercrantz will hold a position focused on business development for EPiServer. In this position, he will lead EPiServer’s community area going forward and be part of the EPiServer Management Team. We value the high level of competence that exists within Netstar and it is extremely important for us to maintain.

This transaction in no way affects past or current installations of Netstars products. We hope that you see the benefits of being partner with a larger international organization with more resources. As an example, EPiServer increased the investments in R & D with 127 % in 2007 and that is a path we will continue. Our overall goal is to provide you with excellent service and develop solutions which help your organization achieve your business goals.

An executive from EPiServer will be calling your organization to address any questions you may have regarding this transaction. We are very pleased about this acquisition and look forward to working directly with you to continue to build a long lasting, beneficial partnership. Please do not hesitate to contact us with questions at any time.

Yours Sincerely

Peter Larsson    
CEO, EPiServer AB    

Gustav Lagercrantz
CEO Netstar