Niscayah’s application of the Code of Corporate Governance

Niscayah Group AB is a Swedish public limited company with its registered office in Stockholm, Sweden. The Company’s shares are traded on NASDAQ OMX Stockholm. The Swedish Companies Act and NASDAQ OMX Stockholm’s rules for issuers including the Swedish Code of Corporate Governance (the ”Code”) form the basis for the governance of the Group’s operations. Niscayah has applied the Code as from the date of the listing on NASDAQ OMX Stockholm on September 29, 2006. The Code is based on the principle ”comply or explain”, which means that a company may deviate from the Code’s provisions provided that such deviations can be explained in a satisfactory manner. The Board of Directors of Niscayah has prepared this corporate governance and internal control report in accordance with the provisions of the Code. In those cases where Niscayah has elected to deviate from the provisions of the Code, a motivation is stated as well as the solution chosen by the company instead in the respective section of the report. This corporate governance report has not been reviewed by the Company’s auditor.

Other corporate governance instruments

Articles of Association

For Niscayah’s Articles of Association, see www.niscayah.com

Guidelines and policies

The basis of Niscayah’s policies is the aim to treat all stakeholders alike, to provide important information at the right time, to fulfil legal requirements in a correct manner and to adhere to prevailing rules and laws. The Group’s most important guidelines and policies relate to financial control, reporting, financial and operational risk management, communication matters and business ethics. The Group’s established communication policy ensures compliance with prevailing stock market rules.

Code of conduct and environment

Niscayah’s Code of Conduct applies to the entire Group and is based on a number of established international conventions. The Code of Conduct is an expression of the values and guidelines which shall apply within the Group with respect to business ethics as well as rights and liberties. Within Niscayah, the responsibility for environmental work rests with the organization in each country. Each country’s organization is consequently responsible for ensuring that the operations are conducted in accordance with the local environmental legislation and regulations.