Interim Report for AudioDev AB January 1 – September 30 2006

(Figures in brackets relate to the period January - September 2005)

• Net sales totalled SEK 77.4 (174.8) million.

• Profit after financial items was SEK -33.4 (15.8) million.

• Profit after tax totalled SEK -22.8 (10.9) million.

• Profit per share amounted to SEK -1.36 (-0.65).

• The backlog of orders was SEK 13.2 (18.7) million at the end of the period.

• Sales of AudioDev blue laser format testers now account for almost half of the company's turnover.

• As of the third quarter, the full effect on expense levels of savings implemented in 2005 and 2006 is noticeable.


AudioDev in brief

AudioDev is a world-leading manufacturer of test equipment for quality control of optical media such as CDs and DVDs. The company also holds a leading position within the ongoing development of the blue laser based formats, BD and HD DVD. Net sales in 2005 were SEK 218 million with the largest markets being in the US, Asia and Europe. The head office is based in Malmö, Sweden. AudioDev has been listed on the Stockholm Stock Exchange since September 2000.

AudioDev's products are sold under the brands CATS and Go!. The products in the CATS series are high precision analyzers for quality testing of all formats on the market. Go! is a brand with products optimised for production control. AudioDev also offers an extensive service network, as well as customised training and independent test analyses via AudioDev's TestCenter. AudioDev's customers include Cinram, CMC, Microsoft, Moser Baer India, Panasonic, Pioneer, Ritek Corp. and Technicolor.

For more information, please contact:

Christer Sjöström, Chief Executive Officer, Tel: +46 40 690 49 00, +46 705 45 64 55
e-mail: christer.sjostrom@audiodev.com

Anna Thelander, Chief Financial Officer, Tel: +46 40 690 49 42, Mobile: +46 709 69 49 20,
e-mail: anna.thelander@audiodev.com