Item 7

The Board of Directors’ of IBS AB proposal regarding rights issue

The Board of Directors of IBS AB proposes unanimously that the shareholders’ meeting resolve to increase the company’s share capital by not more than SEK 8,360,803 through an issue of not more than 1,575,000 class A shares and 40,229,015 class B shares.

The following terms shall apply.

1.  The record day for participation in the issue shall be 5 June 2008.

2.  The shareholders shall be entitled to subscribe for new shares with preferential rights, whereby two class A shares shall entitle to subscription for one new class A share and two class B shares shall entitle to subscription for one new class B share (primary preferential rights). Shares not subscribed for with primary preferential rights shall be offered to all shareholders for subscription (secondary preferential rights). If the shares thus offered are not sufficient for subscription with secondary preferential rights, the shares shall be allocated between the subscribers pro rata to the number of shares previously held and, to the extent such allocation cannot be effected, by the drawing of lots. Any remaining shares shall be allocated to the underwriters of the issue, Deccan Value Advisors Fund L.P., A/D Value Fund L.P., Y/D Value Fund L.P. and Deccan Value Advisors Fund Ltd (“Deccan”) (or any other entity controlled by Deccan).

3.  The new shares shall entitle to dividends on record days for dividends occurring subsequent to the entry of the shares in the company’s share register, however in no event later than for the financial year 2008.

4.  The subscription for shares shall be made during the period 10 – 27 June 2008 or, as regards subscription by the underwriters pursuant to section 2, last sentence, above, no later than three banking days thereafter. However, the Board shall be entitled to extend the subscription period.

5.  The subscription price shall be SEK 9.50 per share.

6.  Subscription with primary preferential rights shall be made by payment in cash.

7.  Subscription without primary preferential rights shall be made on a special subscription form within the time period set out in section 4 above. Thereafter, payment in cash shall be made in accordance with the instructions on the relevant transaction note, however not later than three banking days from receipt of such transaction note.

8.  The Board, or person/s nominated by the Board, shall be authorised to make such minor adjustments to this resolution that may be necessary in connection with the registration thereof.

It is noted that documents according to Chapter 13 Section 6 of the Swedish Companies Act have been prepared and presented. Class A shares are subject to a conversion clause in accordance with Chapter 4 Section 6 of the Swedish Companies Act. This means that intermediate conversion may cause the above-mentioned maximum number of new class A shares and class B shares, respectively, to change accordingly.