Year-end Report January–December 2005

Organic growth, investments in Products, results in line with previous year

2005 2004 Jan-Dec Jan-Dec Change 2005 2004 Key figures Oct-Dec Oct-Dec Change Net sales, 3,035 2,728 11% 832 783 6% SEK M Operating earnings 102 109 -7% 41 49 -16% (EBIT), SEK M Earnings for the 47 42 13% 2 6 -72% period, SEK M Earnings per share, 0.75 0.67 12% 0.03 0.10 -72% SEK · Net sales increased 11% to SEK 3,035 million (2,728). Organic growth for the full year 2005 was 11% · Operating margin of consulting activities was 7% (5) for the period January–December and 7% (6) for the forth quarter; operating earnings (EBIT) were SEK 205 million (130) for the period January–December and SEK 56 million (48) for the forth quarter · Continued investment in Products as well as delayed sales and the financial difficulties of an Obigo customer adversely affected earnings, resulting in operating earnings (EBIT) of –SEK 75 million (14) for the period January–December and –SEK 10 million (15) for the forth quarter · In October Obigo launched a new version of its world-leading software suite for mobile phones. The new software is expected to strengthen Obigo’s position during 2006 · Cash flow from current operations was SEK 203 million (75) The board of directors’ forecast for 2006 Obigo’s new product release has been positively received and is expected to lead to an increased order intake in the next quarters, later followed by a positive effect on profits. The product development investments are expected to decrease. The continuing efficiency drive in the consulting business is also expected have a positive effect. Forecast for the Teleca group: increased net sales and operating profits. For more information please contact: · Dag Sundström, President and CEO, Teleca AB, +46-857911601, mobile +46-705116458 · Christian Luiga, CFO, Teleca AB, +46-857911604, mobile +46-703751604 · Johannes Rudbeck, Investor Relations Manager, Teleca AB, +46-857911616,mobile +46-705825656

About Us

Teleca is a world-leading expert and supplier of software services for all industries where mobile and wireless solutions are used. We offer world class operations and execution capability, both on-site and offshore. Teleca’s technology experts help the leaders and innovators of the connected devices industries deliver products and services that add new dimensions to the networked community. Our unmatched mobile software solutions, global reach and engineering experience enable you to realize your products and visions. In essence, we help the industry offer users great mobile experiences using turnkey, cost effective solutions with faster time to market. We are increasingly using Open Source Software components and software created by our strategic partner network to make our offerings even more comprehensive – and our customers ever more successful. Due to our unique position in the market place we are able to rapidly understand emerging market trends and needs and to proactively propose solutions to our customers. Telecas scale and global reach are unique. We support our customers wherever they are. Teleca has approximately 2,000 employees in 12 countries in Asia, Europe and North America. Teleca. Engineering mobile solutions.


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