Strong growth, improved margins and substantial focus on mobile services

Strong growth, improved margins and substantial focus on mobile services Adera's Report Six months ended June 30, 2000 * Consulting revenue increased by 117%, to SEK 116 M, in the second quarter, compared with revenue in the second quarter of 1999. Consulting revenue in the second quarter of 2000 was 55% higher than in the first quarter. * The EBITA margin in the second quarter improved by 6.5 percentage points, to minus 4.8%, compared with the first quarter this year. Adera incurred a loss of SEK 5.5 M before amortisation of goodwill and items affecting comparability (EBITA) in the second quarter. * Consulting revenue per consultant increased by 17% in the second quarter compared with first-quarter results. Consulting revenue per consultant in the second quarter amounted to SEK 1,277 thousand on an annual basis. * The number of employees as of June 30 was 547, an increase of 227 during the first six months of the year. Including announced acquisitions, the number of employees was more than 600. * Six new companies were acquired and letters of intent pertaining to additional acquisitions have been signed. * Intensified investments in the excellence centre Mobile Business Services have been made. "Many exciting developments have taken place in terms of our Client Portfolio" comments CEO Jörgen Ericsson. "We have worked closely with a large number of clients -- including Wallenius Wilhelmsen Lines, ESAB, Swedish Match and SCA -- to jointly define their eBusiness strategies. We have received very favourable evaluations and letters of recommendations from several customers. During the second quarter we have secured clients like Heineken, RTL (The Holland Media Group), Pharmaplaza and Papyrus. "Adera expanded substantially during the second quarter", Jörgen Ericsson says. "We have made six acquisitions and have signed a number of important letters of intent during the past half-year. We have established ourselves solidly in the Benelux countries through the acquisition of HCM. There have been two types of acquisitions: geographical expansion as well as strategic, customer-driven complementary acquisitions that have been made in order to be able to offer our customers the full suite of services." The activities involving mobile services were intensified during the second quarter. At the present time approximately 25 employees are working in Adera's excellence centre for mobile services and mobile technical systems (Mobile Business Services). Adera has created state of the art mobile services solutions for customers such as Scandic Hotels, IC Tech, Telia Investor Relations, MobiGolf and the Värmland County Council. Adera has been able to proceed with the many new acquisitions faster than expected. This has involved comprehensive integration programs that have had a negative impact on profitability in the second quarter. However, investments in the integration of skills and employees are necessary in order for the new units to become part of the Adera Group rapidly and in an efficient manner. The establishment of a strong unit in Mobile Business Services has resulted in costs for development and market activities. The investments in expansion and mobile services are, however, essential for an innovative and integrated consulting company, such as Adera, in order to offer competitive services to multinational companies. Adera AB (publ) generates business value for customers by combining areas of expertise critical for success based on the new business logic: strategy/business development, marketing/communications and IT/Internet. Adera currently consists fully 600 employees and has offices in Gothenburg, Stockholm, Malmö, Ljungby and Värnamo - in Sweden - as well as Copenhagen, Oslo, London, Antwerp, Amsterdam, and Munich. The Adera share is listed on the O-List of the OM Stockholm Exchange, Attract 40. For additional information, please visit our new Websites: For additional information pertaining to this release, please call: Jörgen Ericsson, CEO Adera AB, telephone: +46 31 701 67 00, mobile: +46 703 99 28 66, email: Janerik Dimming, Information Manager Adera, telephone: +46 31 701 67 66, mobile: +46 706 20 60 08, email: ------------------------------------------------------------ This information was brought to you by BIT The following files are available for download: