Exercise of warrants and share capital increase

Uppsala, June 29, 2012

Employees have exercised warrants TO4B 2011/2014. The Annual General Meeting May 3, 2011 decided to issue a maximum number of 1,168,856 warrants, each entitling the holder to subscribe for one Class B share of IAR Systems Group AB (publ).

Warrants from this series, TO4B 2011/2014, has now been used to subscribe for 1,000 new class B shares of IAR Systems Group AB (publ). There are 1,016,000 remaining warrants issued to employees. The warrants are exercisable up to and including June 18, 2014. The subscription price for the warrant is determined to 34.30 Swedish kronor.

The share capital of IAR Systems Group AB (publ) is after the registration of shares for the exercised warrants  SEK 116,895,614 divided among 11,689,561 shares, of which 100 000 A shares and 11,589,561 B shares.

IAR Systems is the world’s leading supplier of software tools for developing embedded systems

applications. The software enables over 14 000 large and small companies to develop premium

products based on 8-, 16-, and 32-bit microcontrollers, mainly in the areas of industrial automation,

medical devices, consumer electronics, telecommunication, and automotive products. IAR Systems has

an extensive network of partners and cooperates with the world’s leading semiconductor vendors. IAR

Systems Group AB is listed on NASDAQ OMX Stockholm. For more information, please visit

www.iar.com

Stefan Skarin     CEO, IAR Systems Group AB

phone:                +46 708 65 10 05

e-mail:                stefan.skarin@iar.com

Peter Larsson     Chairman of the board, IAR Systems Group AB

phone:                +46 708 32 72 68

email:                 peter.larsson@episerver.com

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