Production of Danish license plates

At SP Medical in Karise (subsidiary in SP Group) license plates have been manufactured without problems to the Danish government for more than 30 years.

After a tender in 2007 the Danish tax authorities, who have taken over the administration of license plates from the National Commission of the Danish Police, decided to place the order to produce Danish license plates with a German producer.

SP Medical was of the opinion that the Danish tax authorities had made mistakes during the tender and therefore brought the case before the Public Contracts Appeals Board. The Public Contracts Appeals Board agreed with SP Medical that the contract with the German producer was made on an illegal basis and ordered the tax authorities to annul the contract. The tax authorities, however, refused to comply with the decision and brought the case to the city court.

The city court let the decision of the Public Contracts Appeals Board stand and orders the tax authorities to annul the contract with the Germans as well. The city court finds that the tax authorities have set aside the procurement directives’ article 2 dealing with equal treatment and transparency. Further the city court proved that SP Medical is entitled to a compensation for expenses connected with the unsatisfied quotation for the future production of license plates (reliance damages).

Last week the time for appeal expired without any appeal from the tax authorities and SP Group is now looking forward to a new tender round, initiated by the tax authorities as the responsible authority. The tax authorities has paid SP Group a compensation of DKK 600,000.- and costs.

The decision will not change SP Group’s expectations of the accounting year 2009.

For further information please contact Chief Executive Officer Frank Gad.

Med venlig hilsen

Niels K. Agner Bestyrelsesformand	Frank Gad Adm. direktør

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Incase of any discrepancies, the Danish version shall prevail.