Anoto Group January – September 2006 Interim Report

• Third quarter sales were SEK 25 million (23). January-September sales totalled SEK 79 million (81).

• The Group’s third quarter gross margin was 70% (75), or SEK 17 million (17). The gross margin for January-September was 76% (69), or SEK 60 million (56).

• Earnings before depreciation and amortization for the third quarter were SEK –28 million (–21). The new Content and Applications business unit (Anoto Inc. in the United States) accounted for SEK –10 million (0) of the loss. Earnings before depreciation and amortization for January-September were SEK –75 million (–37). Content and Applications accounted for SEK –31 million (0) of the January-September loss.

• Earnings after taxes were SEK –33 million (–27) for the third quarter and
SEK –93 million (–62) for January-September.

• Earnings per share totalled SEK –0.26 (–0.22) for the third quarter and
SEK –0.73 (–0.52) for January-September.

• Cash flow amounted to SEK –42 million (–5) for the third quarter and
SEK –7 million (30) for January-September.

Operations

• Anders Norling took over as CEO in the third quarter.

• The Forms Solutions application area continued to grow in the third quarter. Active Forms Solutions users numbered approximately 42,000, up 13% from the previous quarter and 133% from a year ago.

• Anoto signed a service provider agreement with Order-Made Souyaku, a new Japanese partner. The value of the contract is 3 MSEK.

• Anoto reorganised in order to better implement its new strategy.



For more information

You are welcome to take part in Anoto’s upcoming teleconference for financial analysts and the media.

Date Wednesday, 8 November 2006
Time 10.00
Phone +44 207 162 0025
Please specify Anoto

Or phone:
Maria Galvin
Corporate Communications Manager
+46 46 540 10 21

Anoto’s 2005 annual report may be downloaded from www.anotogroup.com/obj/docpart/444617e2803fa.pdf

Anoto Group AB (publ), company registration no. 556532-3929
Emdalavägen 18
SE-223 69 Lund
Sweden
Phone: +46 46 540 12 00
www.anoto.com

About Us

Anoto Group is the company behind and world leading in the unique technology for digital pen and paper, which enables fast and reliable transmission of handwritten text into a digital format. Anoto operates through a global partner network that focuses on user-friendly forms solutions for efficient capture, transmission and storage of data within different business segments, e.g. healthcare, bank and finance, transport and logistics and education. The Anoto Group has around 110 employees, offices in Lund (head office), Boston and Tokyo. .Among the major shareholders are Norden Technology A/S, Robur and SEB. The Anoto share is traded on the Small Cap list of the OMX Nordic Exchange in Stockholm under the ticker ANOT. For more information: www.anoto.com

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