Anoto Group, January – March 2006 Interim Report

• First quarter sales were up 40 % to SEK 40 million (29). • The Group’s first quarter gross margin rose to 79% (65), or up 68 % to SEK 32 million (19), the highest gross profit in Anoto’s history. • The earnings before depreciation and amortisation for the first quarter was SEK –11 million (–8). The new US based Content and Applications business unit accounted for SEK –8 million (0). • The earnings after tax for the first quarter was SEK –14 million (–15). • Earnings per share for the first quarter were SEK –0.11 (–0.13). • First quarter cash flow was SEK 65 million (–1). Operations • Active forms users totalled approximately 30,000, up 33% from the previous quarter and 128% from a year ago. • The Japanese subsidiary of Anoto Group obtained a breakthrough order in the country’s public sector. The order initially covers licences for 4,300 forms pen users. • Unimicron Group and Anoto are starting Anoto Taiwan, which will supply Anoto products and solutions to the Taiwanese market. Anoto is receiving initial licence revenue of JPY 300 million (SEK 20 million). • The company is continuing to build the organisation for the new Content and Applications business unit.