Anoto Group AB: Interim Report January – March 2007

• First quarter sales rose by 27% to SEK 56 million (40).

• The Group's first-quarter gross margin amounted to 78% (79), while the gross profit was up by 38% to SEK 44 million (32).

• Earnings before depreciation and amortisation for the first quarter were SEK 15 million (–11).

• Earnings after taxes for the first quarter were SEK 9 million (–14).

• Earnings per share for the first quarter were SEK 0.07 (–0.11).

• First quarter cash flow was SEK –10 million (65).


Business developments

• Active forms users numbered approximately 60,000, up 14% from the previous quarter and 104% from a year ago.

• One of Anoto’s German partners, Diagramm Halbach, has won a European public tender for delivering an e-voting system solution based on Anoto digital pen and paper technology to the City of Hamburg for the elections in 2008.
The project has a potential of 12,000 pens.

• Anoto's subsidiary for video technology and proprietary ASICs signed a new video technology agreement with a global manufacturer of mobile phone platforms. The agreement is expected to generate non-recurring engineering (NRE) income of SEK 8 million, most of which will be recognized as revenue in 2007. Anoto will also receive royalty on future sales. Anoto have previously entered into a number of similar agreements with the manufacturer.

• Anoto signed an agreement with a new U.S. pen partner headed up by Jim Marggraff, former president of Anoto Inc. in Oakland, California. The agreement covers development and marketing of the next-generation digital pen and paper solution for the consumer market. Anoto is receiving USD 3.5 million plus sales-based royalties.

• Anoto and Dai Nippon Printing (DNP) completed the previously announced license agreement for next-generation interactive solutions in Japan. At the beginning of the second quarter Anoto received EUR 2 million and the remaining EUR 1.5 million will be paid in two instalments based on achieved deliverables. Anoto will also receive royalty on future net sales.


For more information

You are cordially invited to take part in Anoto’s teleconference for media and financial analysts at 10.00 on 8 May.

Date: Tuesday, 8 May 2007
Time: 10.00
Phone: +44 (0) 207 162 0125
Specify: Anoto

Or phone:
Maria Galvin
Corporate Communications Manager
+46 46 540 10 21

The 2006 annual report is available at www.anoto.com. Although the report will not be printed, a printout of the digital version may be ordered from the company.

Anoto Group AB (publ), company registration no. 556532-3929
Emdalavägen 18
SE-223 69 Lund, Sweden
Phone: +46 46 540 12 00
www.anoto.com