Q-FREE – FOURTH QUARTER AND PRELIMINARY FULL YEAR RESULTS 2016

Q4 2016

* 241 MNOK in revenues, up 23% from 197 MNOK in Q4-15

* 7 MNOK in EBITDA. Performance negatively impacted by 12 MNOK in inventory write-down and work in progress principle adjustments in Q-Free UK

* 196 MNOK in order intake, 55 MNOK in announced and 141 MNOK in unannounced orders

* 1.4 bn NOK in order backlog, 615 MNOK scheduled for delivery in 2017

* Cost savings program initiated in Q3-16 finalized with 50 MNOK in annual gross OPEX savings as promised

* 134 MNOK in gross proceeds from private placement in October, cash flow further improved due to good cash management

FY 2016

* 877 MNOK in revenues, up 14% from 767 MNOK in 2015

* 11 MNOK in EBITDA vs 69 MNOK in 2015 before restructuring charges

* 1 575 MNOK in order intake due to signing of largest ever tolling contract in Slovenia (472 MNOK) and largest ever ATMS contract with Virginia Department of Transportation in USA (200 MNOK)

POST Q4 2016

* The Security Division divested for a net consideration of 10 MNOK

* Security business is reported as “Discontinued Operations” and excluded from 2015 and 2016 Profit and Loss, Balance sheet and Cash Flow statements.

-In the fourth quarter of 2016, Q-Free has taken a number of actions to pave the way for profitable growth in 2017. We have built a record-high order backlog, the financial structure has been significantly improved, operational expenses have been reduced, and the business scope has been narrowed. Q-Free is now well positioned to generate double digit revenue growth and deliver attractive margins in 2017, comments CEO of Q-Free ASA, Håkon Volldal.

Enclosures: Q4-16 report and presentation

For further information, please contact:

President & CEO, Håkon Volldal: +47 977 19 973

CFO, Roar Østbø: +47 932 45 175

About Q-Free

Q-Free is a leading global supplier of ITS (Intelligent Transportation Systems) products and solutions. The company has approximately 420 employees, offices in 20 countries, and presence on all continents. Headquartered in Trondheim, Norway, Q-Free is listed on the Oslo Stock Exchange under the ticker QFR.

www.q-free.com

Twitter: @Q-FreeASA