The revised Swedish Code of Corporate Governance which was implemented on 1 February 2010 (the “Code”) covers from that date all companies which are admitted to trading on a Swedish regulated market, including HCN Group AB, partner companies. Code’s rules represent an addition mainly to the provisions of the Companies Act regarding the company’s organization, but also to the relatively extensive self-regulation that exists for corporate governance. The code is based on the principle of “follow or explain”. According to this principle a company may deviate from individual rules, in which case the company must explain the reasons for each reported deviation. The revised Code, companies also report the solution chosen associated with a deviation statement. This corporate governance report has been prepared in accordance with the rules of Chapter 10 of the Code.