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NFON AG receives EUR 26 million from a capital increase to finance its growth

- 1,505,555 new shares successfully placed with institutional investors

- Gross issue proceeds of EUR 26.3 million to finance growth

- Investments planned in the areas of product development, partner management and marketing, in particular

Munich, March 26, 2021 - NFON AG (together with its subsidiaries "NFON" or "the Company"), the only pan-European cloud PBX provider (telephone system from the cloud), has placed 1,505,555 shares with institutional investors via an accelerated bookbuilding process at a placement price of 17.50 EUR per share. This equates to gross issue proceeds of 26,347,212.50 EUR. The shares were made available to Berenberg as the transaction bank by an anchor shareholder by way of a securities loan for the purpose of efficient execution of the placement. This will be repaid after registration of an increase of the share capital of the Company by 1,505,555 new shares, which represents approximately 10% of the current share capital, by a partial use of its authorized capital. Shareholders' subscription rights were excluded in the process. The net proceeds from the issue of the new shares are to be invested in the further growth of the Company, in particular in the further development of the product portfolio through internal development projects or technology investments, the expansion of the pan-European partner network as well as in marketing activities.

The market for cloud communications is undergoing structural change. 2020 was a catalyst for this development. NFON is benefiting from the increasing digitalization of business communication with Cloudya, the telephone system from the cloud. The Company intends to take advantage of the opportunities this presents for NFON throughout Europe in order to grow much more strongly. Dr. Klaus von Rottkay, Chief Executive Officer of NFON AG: "The market for cloud telephone systems in Europe is growing at an average rate of around 12%. We want to exceed this target very clearly. That is why we will again invest significantly more in 2021 and set the course for further growth. In concrete terms, this means we will continue to optimize the partner management of our more than 2,700 partners in order to further expand our base of already more than 500,000 customer-installed extensions. In the future, we will increasingly sell premium solutions to this strong customer base. So we will not only continue to grow quantitatively, but also qualitatively."

Investor Relations Contact

NFON AG
Sabina Prüser
Head of Investor Relations
+49 89 45300 134
sabina.prueser@nfon.com

Media Contact

NFON AG
Thorsten Wehner
Vice President Public Relations
+49 89 45300 121
thorsten.wehner@nfon.com

About NFON AG

Headquartered in Munich, NFON AG is the only pan-European cloud PBX provider - counting more than 40,000 companies across 15 European countries as its customers. With Cloudya, NFON offers an easy-to-use, independent and reliable solution for advanced cloud business communications. Further premium and industry solutions complete the portfolio in the field of cloud communications. With our intuitive communications solutions, we enable European companies to improve their work a little every single day. NFON is the new freedom in business communication. https://corporate.nfon.com/de/

Disclaimer

This release and the information contained herein are not for distribution in or into the United States of America (including its territories and possessions, the states of the United States of America and the District of Columbia) (the "United States"), Canada, Australia and Japan. This release does not constitute an offer or part of an offer to sell or a solicitation of an offer to buy any securities (the "Shares") of NFON AG (the "Company") in the United States. The Shares of the Company have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act, or in a transaction not subject to the registration requirements of the Securities Act. Any sale of securities referred to in this release in the United States will be made only to "qualified institutional buyers" within the meaning of Rule 144A under the Securities Act.

This release is directed only at persons who reside or are located in a member state of the European Economic Area (other than Germany) and who are "qualified investors" within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (the "Prospectus Regulation"). In the United Kingdom this release is only directed at persons who are "qualified investors" within the meaning of Article 2(e) of Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 who are also "investment professionals" within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), (ii) high net worth companies, and other persons to whom it may otherwise lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order or (iii) persons to whom this release may otherwise be lawfully communicated (all such persons together, the "Relevant Persons"). No person other than Qualified Investors or Relevant Persons may refer to or rely on this release. Any investment or investment opportunity referred to in this release is available only to qualified investors or relevant persons and will be engaged in only with qualified investors or relevant persons.

This release may contain certain forward-looking statements, estimates, beliefs and projections regarding the Company's future business, results of operations and earnings ("forward-looking statements"). Forward-looking statements can be identified based on the use of words such as "believe," "estimate," "anticipate," "expect," "intend," "will," or "should" and their negation and similar variations or comparable terminology. Forward-looking statements include all matters that are not historical facts. Forward-looking statements are based on the current opinions, forecasts and assumptions of the Company's management and involve significant known and unknown risks and uncertainties, and therefore actual results, performance or events may differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements contained herein should not be taken as guarantees of future performance or results and are not necessarily reliable indicators of whether or not such results will be achieved. The forward-looking statements contained in this release are only valid as of the date of this release. We will not update the information, forward-looking statements or conclusions contained in this release to reflect subsequent events or circumstances, or to correct inaccuracies that may arise after the date of this release as a result of new information, future developments or otherwise, and do not undertake any obligation to do so. We assume no responsibility in any way for the occurrence of the forward-looking statements or assumptions contained herein.