Aspiro AB (publ): Interim Report January-March 2007

Strong Market Position Retained in Norway and Sweden. Challenges in Finland and Denmark, Plus Forward-looking Initiatives Reduce Profitability

- First-quarter EBITDA was SEK 4.8 m (SEK 15.0 m). Earnings were subject to restructuring costs of some SEK 2.9 m, and costs of some SEK 2 m relating to initiatives in new services segments. Deteriorated market conditions in Finland and Denmark reduced earnings by some SEK 7 m.

- Earnings after tax were SEK 1.9 m (SEK 8.7 m) for the three-month period and basic and diluted earnings per share were SEK 0.01 (SEK 0.05).

- Net sales were SEK 97.1 m (SEK 119.3 m) for the first quarter 2007, with discontinued operations in the UK and Spain reducing sales by SEK 5.3 m and deteriorated market conditions in Finland and Denmark contributed to sales reducing by some SEK 15 m year on year.

- Subscription and text-based directory enquiries services performed robustly in the period.

- In January, Aspiro’s subsidiary Rubberduck signed a contract with operator 3 regarding the delivery of its technology solution for 3’s mobile TV initiative in Sweden and Denmark.

- Aspiro acquired 51% of the shares of the Voolife community (DemoRadio Nordic AB) in February. Voolife is an early-stage Swedish music community with high membership growth.

- Aspiro was appointed to conduct mobile marketing campaigns by customers including Norwegian food producer Stabburet (Grandiosa pizzas), EA, ice cream product distributor Diplom Is, Viking Footwear and for the Mercedes-Benz C class. Late in the period, Aspiro started up and launched the first pan-Nordic mobile advertising network.

- Gunnar Sellæg became Aspiro’s CEO on 1 March. Ole Jørgen Torvmark was hired as Vice President of Community in the period.

- The Board of Directors considers that the company will maintain its secure market position in its current business. Challenges in Finland and Denmark will mean lower profitability than in the previous year.

- To enable strong future growth, in 2006, the Board took the decision to concentrate on the mobile TV, music, mobile marketing, search services and community segments. In the next three years, Aspiro expects brisk growth in these segments. These initiatives are expected to reduce year-2007 EBITDA by SEK 15-25 m. The Board expects these initiatives to generate positive earnings in the financial year 2009.

KEY FIGURES Jan-mar 2007 (2006):

Net sales, SEK m 97.1 (119.3)
EBITDA, MSEK 4.8 (15.0)
Earnings after tax, SEK m 1.9 (8.7)
Earnings per share, SEK 0.01 (0.05)
Liquid funds, closing balance, SEK m 89.0 (61.3)
Cash flow from operating activities before changes in working capital, SEK m 8.2 (11.2)

Figures in brackets are for the corresponding period of the previous year.