Observer AB (publ) Interim report January – September 2003

Positive growth in North America during the third quarter. Organic growth improved slightly in the Nordic region and Germany.

• The group’s operating revenue amounted to SEK 1,144.2 million (1,272.3). Exchange rate effects from the translation to Swedish kronor negatively affected revenue by SEK 83.3 million compared with the corresponding period of 2002. Organic growth in local currency was –4 percent. Organic growth has gradually improved and during the third quarter was –3 percent.

• Operating profit before goodwill amortization and items affecting comparability amounted to SEK 166.6 million (234.3). Exchange rate effects negatively affected profit by SEK 16.1 million compared with the corresponding period of 2002. The operating margin was 14.6 percent (18.4). The operating margin during the third quarter was 15 percent.

• The loss after tax for the period amounted to SEK –31.2 million (19.4). Profit per share after dilution, excluding goodwill amortization and items affecting comparability, was SEK 1.53 (2.21).

• Cash flow remains strong. Operating cash flow amounted to SEK 176.5 million (234.8).

• North America operations reported positive growth during the third quarter. Growth in the Nordic region improved slightly but remains negative. Growth improved in Germany as well, while the changeover to digital media monitoring has temporarily disrupted production in the UK.