Anoto enters into a strategic alliance to expand product portfolio and new
pattern based applications into mobile devices including cross shareholding
transactions involving US$5 million share issue in Anoto
Lund, July 18, 2016 – On July 15, 2016 Anoto has entered into a strategic
cooperation with Digiwork, a specialist in pattern-based image encoding
technology using mobile phones and tablets for pattern recognition, in addition
to an investment agreement with its listed parent company SMark Co., Ltd.
(“SMark”) . This alliance includes a co-marketing of products which will
further enhance Anoto’s product offering and expand Anoto’s market into the
growing economies of additional Asian countries.

The combination of Digiwork and Anoto’s pattern technologies will result in
exciting mobile recognition solutions that expand Anoto’s addressable market
beyond digital pens. Digiwork is also a leader in pattern-based security &
authentication solutions using a proprietary technology to produce a
near-invisible pattern that may be verified using mobile devices. Digiwork's
current clients include the Indonesian government and various large
corporations in Asia.

Anoto and Digiwork also agreed to jointly develop a “Product DNA” Big
Data-mining solution using Anoto's proprietary unique patterns and Digiwork's
encoding capability. This will allow manufacturers to print invisible unique
patterns on their products that enable accurate tracking of consumption and
digital application use. Anoto and Digiwork have commenced discussions with
potential customers regarding this solution.

The strategic alliance will include a US$2 million investment by Anoto into
SMark, a Korean listed company on KOSDAQ Korea under ticker “SMARK” and the
parent company of Digiwork at a subscription price per share of KRW 3,435 to be
completed on or around 25 August 2016, as well as a US$5 million investment by
SMark into Anoto at a subscription price per share of US$0.09185 to be
completed on or around September 9, 2016, generating a net cash injection of
US$3 million into Anoto. Pursuant to the investment agreement, the Board of
Directors of Anoto resolved on July 15, 2016 to issue 171,320,884 new shares at
the subscription price per share of US$0.029185 (corresponding to SEK 0.25 at
the exchange rate for USD/SEK of 8.5661 as reported by Riksbanken (the Swedish
Bank) on 13 July 2016). An Extraordinary General Meeting is expected to be held
on or around August 18, 2016 with the purpose of appointing a new board member
nominated by SMark.


For further information, please contact:

Joonhee Won, CEO


For more information about Anoto, please visit www.anoto.comor email
[email protected]


Anoto Group AB (publ)Reg.No. 556532-3929,
Mobilvägen 10, SE- 223 62 Lund
Tel. +46 46 540 12 00


This information is information that Anoto Group AB is obliged to make public
pursuant to the EU Market Abuse Regulation. The information was submitted for
publication, through the agency of the contact person set out above, at 08:15
a.m. CET on 18 July 2016.



About Anoto
Anoto is a global leader in digital writing and drawing solutions. Its
technology enables high-precision pen input on nearly any surface. Anoto is
present around the world through a global network of strategic licensing
partners that deliver user-friendly writing and drawing solutions for effective
collection, transfer and storage of data. Anoto is traded on the Small Cap list
of Nasdaq Stockholm under ANOT.

Anoto enters into a strategic alliance _Eng_Monday_18July.pdf