Half Yearly Report 1 January - 30 June 2001

Half Yearly Report 1 January - 30 June 2001 Strong and profitable growth * CityMail International (the core operation) increased turnover during the first half of 2001 to SEK 80.2 million (23.3). The increase was 244% compared with the first half of 2000. * CityMail International's profit before financial items for the first half of 2001 amounted to SEK 6.7 million (1.3). * CityMail Group's profit for the first half of 2001, after financial items but before items affecting comparability, amounted to SEK 5.5 million (-5.6*). * The results after items affecting comparability (write down of Real Logistics and flytta.nu) amounted to SEK -9,5 million (53,8). Strengthened cash reserves * After the sale of promissory notes, which were received as part payment in conjunction with the sale of the CityMail Sweden business area in July 2000, the cash reserves will be strengthened with approx. SEK 42 million. Contribution of financial funds to Real Logistics is stopped * Volume forecasts for Real Logistics have not been met. * The entire investment in Real Logistics, SEK 11.0 million, has been written down. * The Board of Directors resolved today not to contribute any additional financial funds. * A pro forma profit and loss account for 2000 has been prepared as if the sale of the Swedish distribution operations was carried out on 1 January 2000. CityMail Group AB´s Structure CityMail Group consists of the wholly owned business, CityMail International, as well as a number of part-owned companies and projects. CityMail International, which was started in 1998, constitutes CityMail Group's core business. The business of the jointly owned operations, within interactive address services and logistics, constitutes a supplement to the core operation. CityMail International focuses its operation on coordinating, integrating, and optimising international postal flows, primarily within the customers´ administrative customer communications (invoices, account statements, etc). During 2000, CityMail Group underwent a fundamental restructuring. The former core operation, the Swedish distribution operations, were sold to a new company, CityMail Sweden AB. Consignia (formerly Post Office) owns 67 percent of this company and CityMail Group owns 33 percent. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/08/21/20010821BIT01290/bit0002.doc The full report http://www.waymaker.net/bitonline/2001/08/21/20010821BIT01290/bit0002.pdf The full report