Interim report January 1 – September 30, 2006

Pointsec continues to take market share
– Strong sales in the US

THIRD QUARTER 2006
• Net sales increased by 166% to SEK 163.4 M (61.3)
• Sales of Pointsec solutions rose to SEK 149.0 M (51.4)
• Profit after financial items amounted to SEK 56.0 M (10.0)
• Profit after tax amounted to SEK 35.8 M (7.0)
• Earnings per share increased to SEK 1.56 (0.31)

NINE-MONTH PERIOD JANUARY – SEPTEMBER 2006
• Net sales increased by 92% to SEK 370.8 M (192.7)
• Profit after financial items amounted to SEK 88.0 M (34.5). A one-time reserve of SEK 9.2 M was charged against earnings during the period for doubtful receivables relating to partner sales reported in the second quarter.
• Profit after tax amounted to SEK 58.7 M (22.1)
• Earnings per share increased to SEK 2.59 (1.00)

CEO Peter Larsson’s comments:
“The strong demand in the US lifted Pointsec sales to a level that exceeded our expectations. Revenues of SEK 149.0 M were booked during the quarter, which was nearly three times as much as during the corresponding period last year (51.4).

“It is not only the number of contracts signed in the US that increased. Business prospects also remain strong.

“Demand for our solutions is supported by increased awareness of the damage that a lost computer can cause. Boards and company managements do not want to risk negative publicity in the press because they did not take adequate measures to protect sensitive information.

“A key success factor for Pointsec in an increasingly competitive market is that our solutions are easy to install and cost-effective. We have received several valuable customer references because we were able to install a large number of licenses in a short time. Further confirmation of Pointsec’s success in the market is that we are continuing to replace competitors’ installations. One of the UK’s largest banks recently decided to install Pointsec licenses after first trying to introduce a competing solution.

“Our assessment is that the market for Pointsec products continues to grow and that the company will further strengthen its market position. With the strong increase in sales in the third quarter, we updated the forecast for the full year 2006. The new forecast is that sales and profit during 2006 are expected to increase significantly, compared with 2005.”

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