LBI International AB - Interim report for January-September:

Integration completed - and on course for strong revenue and earnings growth

This interim report presents the results for LBI in two sections which follow the statutory and pro forma higlights below. The pro forma section, provides the financial information on a fully consolidated basis for the year-to-date and for comparison to 2005. The second section provides the statutory information which is based on nine months, January-September 2006, of the former LB Icon combined with two months, August-September 2006, of the former Framfab, in accordance with the reverse merger accounting principles. The merger was registered on 31 July 2006.

Statutory financial highlights

· Net sales were EUR 92.3 million (68.7) for January-September and EUR 36.4 million (24.1) for the third quarter. Net sales per employee on an annual basis were EUR 134 thousand (124) for January-September

· The January-September profit after tax was affected by restructuring charges of EUR 1.8 million. The operating profit was EUR 5.2 million (6.9) for January-September and EUR 3.1 million (3.6) for the third quarter. The operating margin was 7.6% after reversal of restructuring charges and 5.6% (10.1) before for January-September. For the third quarter the operating margin was 8.4% (14.9)

· Earnings per share came to EUR 0.15 (0.15) for January-September and EUR 0.07 (0.11) for the third quarter

· Cash flow from operating activities was EUR 5.9 million (0.1) for January-September and EUR 2.2 million (-0.6) for the third quarter. Liquid assets were EUR 17.9 million as of 30 September

Pro forma financial highlights

January-September

· Net revenue up 23% mainly due to strong demand in key countries

· Higher productivity and improved rates lead to a sharp improvement in EBIT margin from 4.3% in the same period of 2005 to 7.3% after and 5.2% before reversal of restructuring charges. EBIT excluding restructuring improved by 107 %

· Net result improves 68% to EUR 5.4 million

July-September

· Net revenue up 6% compared to Q3 2005

· EBIT improved 91% mainly due to higher productivity

· Sharp improvement of net result to EUR 3.0 million from EUR 0.9 million


EUR million 2006 2005 Growth 2006 2005 Growth

Net revenue 127.6 104.9 23% 40.7 37.9 6%
Restructuring
costs -2.6
EBITDA 11.2 8.5 32% 4.4 3.1 41%
EBITDA margin 8.8% 8.1% 10.8% 8.1%
EBIT 6.7 4.5 49% 2.8 1.5 91%
EBIT margin 5.2% 4.3% 7.0% 3.9%
EBIT, excl.
restruct. 9.3 4.5 107% 2.8 1.5 91%
EBIT margin,
excl.
restruct. 7.3% 4.3% 7.0% 3.9%
Net result 5.4 3.2 68% 3.0 0.9 239%
Net result
margin 4.2% 3.1% 7.4% 2.3%
Net revenue/
empl.
(annualized),
thousands 138 125 11% 129 127 2%

Note: Escador GmbH divested as of July 31 2006

Executive summary

· Demand for digital marketing communications services continues to be robust and growing

· Organic growth of 15 % in net revenue, higher than any past recent year

· Focus on large multinational clients pays off - 30 large national and international clients added in Q3 and increased retainer/contracted client relationship

· Integration of all country operations finalized, with encouraging revenue synergies and overhead savings on track

· Expect full-year 2006 to be strong and outlook for 2007 expected to achieve significant revenue growth and considerable improvement in operating margins

Meeting for analysts and press
The interim report, along with market prospects, will be presented by CEO Robert Pickering and CFO Jan Norman at 10.30 CET at the Rosarium, Amstelpark 1, in Amsterdam. The presentation will also be broadcasted on the Internet at www.lbi.com and www.companywebcast.nl/webcast/default.asp?id=716, as well as teleconferenced on +31 20 713 27 61. The teleconference will also provide an opportunity to ask questions.

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