INTERIM REPORT JANUARY – SEPTEMBER 2010

(NGM:PAY)

(For full interim report, including tables, see attached file)

JANUARY – SEPTEMBER 2010 IN SUMMARY

• The transaction volume for the first nine months of 2010 was SEK 3,054,860 thousand (2,082,450), an increase of 47 per cent compared to the same period of 2009.

• Transaction-based revenue for the nine-month period was SEK 22,653 thousand (22,045), up by 3 per cent over the corresponding period of 2009.

• Compared to the same period of 2009, operating profit/loss before amortization/depreciation for the nine-month period improved by SEK 14 milli¬on to SEK 1,882 thousand (-12,485).

JULY – SEPTEMBER 2010 IN SUMMARY

• The transaction volume for the third quarter of 2010 was SEK 997,189 thousand (962,287), an increase of 4 per cent compared to the third quarter of 2009.

• Transaction-based revenue for the third quarter was SEK 7,385 thousand (8,733), down by 15 per cent compared to the same period of last year.

• Compared to the third quarter of 2009, opera¬ting profit/loss before amortization/depreciation improved by SEK 1.6 million to SEK 1,155 thou¬sand (-471).

SIGNIFICANT EVENTS AFTER THE END OF THE THIRD QUARTER

• The administrative court of appeal dismissed Paynova’s appeal and upheld the county adminis¬trative court’s decision regarding liability for value added tax. As earlier, Paynova’s assessment is that the decision will not have any effect on profit other than interest expenses, since Paynova has made continuous provisions for VAT costs according to the Swedish Tax Agency’s opinion. However, the decision will have a negative impact on liquidity. At the end of the third quarter of 2010, these provisions amounted to SEK 12.7 million. The Board’s assessment is that this is the amount, excluding interest, to be paid at the end of the first quarter of 2011.

• Paynova is in a strained capital situation. Despite a positive EBITDA, the company is still showing a loss. Shareholders’ equity is nearing a level at which a control balance sheet must be set up. The Board is closely monitoring events and has continuous preparedness to deal with the situation. The capital situation and VAT liability will be handled through a directed share issue for approximately SEK 25 million that the Board intends to propose to an extraordinary general meeting. The plan is to carry out the issue before the end of the first quarter of 2011.

• The investment in the associated company Chinova has been financed with a short-term loan of SEK 6.5 million. Paynova and the lender, Centum Select Fund Ltd, have agreed that the loan will be redeemed partly through a cash payment of SEK 1 million and partly through Centum Select Fund’s subscription for shares corresponding to SEK 5,500 thousand in the directed share issue for approximately SEK 25 million that the Board intends to propose to an extraordinary general meeting.

• Paynova’s associated company Chinova has signed a collaboration agreement with one of Europe’s leading PSPs, Atos Worldline. The agreement will enable Atos Worldline to offer China UnionPay payments to all of its customers that want to sell their goods or services in China. The agreement represents a breakthrough for Chinova and will generate transaction-based revenue for Paynova in 2011.

• Paynova has signed a strategic collaboration agreement with Payzone Nordic AB. Payzone is a leading consumer payments network in Europe and offers customized IT solutions that drive growth for retailers, including payment services, debit card handling, electronic gift cards and CRM services such as loyalty and club cards. Together with Payzone, Paynova can now provide customers that are active in both traditional and online retailing with options such as a uniform solution for reporting and reconciliation regardless of the sales channel.

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