Iceland ranks second in the Human Development Report 2003, commissioned by the United Nations Development Programme. The Report ranks 173 countries according to their level of human development by measuring achievements in terms of life expectancy, educational attainment and adjusted real income.

Kögun, an Icelandic IT company, and Microsoft Corporation have signed an agreement for the acquisition of all shares in Kögun’s subsidiary, Navision Ísland ehf. by the latter. The sold shares have a par value of ISK 500,000 (USD 6,519), which will be acquired at an acquisition value of ISK 176,220,000 (USD 2,297,523). However, the final acquisition price is not determined at the signing of the agreement as the agreement stipulates that the acquisition price will be adjusted by an amount equal to the difference between current assets less short-term liabilities and the amount of ISK 14,690,000 (USD 191,525) when an audited balance sheet dated June 30, is available. The final settlement is expected to be completed within 45 days from the signing. Kögun hf. will gain a significant profit from the sales, which will be stated in company’s accounts in the third quarter of this year. Further to the acquisition agreement, Kögun hf. signed a contract to supply Navision Ísland ehf. with various operating services for a non-specified amount of time. Microsoft initiated the agreement by makin Kögun hf. an offer to purchase the aforementioned shares following discussions between the parties. The offer was followed by negotiations, which resulted in an increase of the proposed offer. Kögun’s board of directors is satisfied with the price that was paid for Navision Ísland ehf.