Interim report 1 January – 30 September 2006

Tilgin AB (publ), Corp. ID no. 556537-5812

Third quarter 2006
• Sales SEK 87.6 million (87.0), a 1 % increase compared with the third quarter 2005.
• Net result SEK –7.2 million (-14.5).
• Loss per share SEK –0.50 (-4.47).
• New customers include Star (IP-TV, USA), supply and support agreement with EITC in
Dubai.
• Delays in planned Q3 deliveries that will be recovered in the fourth quarter, together with
continued high new order volumes, provide the basis for a strong finish of 2006, both saleswise
and profit-wise.
• Gross margin 18 % (12 %), an improvement compared with the third quarter 2005, and also
compared with the previous quarter.
• Operating result SEK –5,8 million (-13.4).
• Cash flow from operating activities SEK –34.8 million (-61.9).
• Cash and bank SEK 17.1 million (1.7) as of 30 September 2006.
First nine months of 2006
• Sales SEK 282.8 million (135.0), a 109 % increase compared with the first nine months of
2005.
• Net result SEK –40.8 million (-57.2).
• Loss per share SEK –3.18 (-26.74).
• Gross margin 19 % (12 %).
• Operating result SEK –38.3 million (-53.2).

Other issues
• The preferential rights share issue totaling SEK 46.3 million before underwriting expenses
was completed in August 2006.
• Agreement signed with Nortel, making the company’s products available to purchasers of
Nortel’s IP-TV systems solution. The agreement may also facilitate joint customer and
market activities on the operator market within both IP Residential Gateway and IP-TV.
• The Board continues to evaluate the possibility of listing the company at the stock exchange.

For further information, please contact:

Jan Werne, CEO, Tilgin AB (publ)
Phone : +46 708 48 25 40
E-mail: jan.werne@tilgin.com

Mikael Sköld, CFO, Tilgin AB (publ)
Phone : +46 708 48 30 11
E-mail: mikael.skold@tilgin.com