Interim Report, nine months, May 1999 - January 2000

Interim Report, nine months, May 1999-January 2000 Connecta AB (publ) Continued strong growth and profitability * Net sales rose 76% during the period May 1999-January 2000 to SEK 271.6 M (corresponding period of the preceding year: SEK 154.1 M). 1 * Operating profit up 76% to SEK 32.6 M (18.5). * On a rolling 12-month basis, sales amounted to SEK 349.8 M (188.2) and operating profit 1 to SEK 47.9 M (22.6). The operating margin on a rolling 12-month basis was 13.7% (12.0%). * The number of employees increased by 177, totaling 493 (291) at the end of the period. * Letter of Intent signed regarding acquisition of the Danish Internet company, Albatros Network A/S. Connecta and Information Highway plan merger to form one of Europe's leading Internet consultancies The Boards of Directors of Connecta and Information Highway have decided to recommend that shareholders approve a merger of the companies on equal terms. This will create one of the leading consulting companies in Europe focusing primarily on strategic business-to-business Internet solutions. The new group will have an excellent platform for ongoing rapid international expansion. Combined, the two companies currently have about 1,200 employees and the goal is to have at least 2,000 employees by year- end. A more detailed presentation of the planned merger is presented on pages 4-7. Sales, earnings and financial position Connecta's net sales amounted to SEK 271.6 M for the period May 1999- January 2000 (corresponding period of the preceding year: SEK 154.1 M), up 76% compared with the year-earlier period. Operating profit before goodwill amortization rose 76% to SEK 32.6 M (18.5). The operating margin, before goodwill amortization, rose to 12% (12). Translated to 12-month figures - that is, the 12-month period ended January 31, 2000 - sales amounted to SEK 349.8 M (188.2) and operating profit, before goodwill amortization, to SEK 47.9 M (22.6), corresponding to an operating margin of 13.7% (12.0). Pre-tax profit amounted to SEK 28.3 M (12.6). After estimated taxes, consolidated net profit amounted to SEK 19.2 M (8.1). Issue costs of approximately SEK 16 M were not taken into account in calculating tax for the period. The Group's actual tax costs, after a deduction for issue costs, is estimated at SEK 4.6 M. The Group's net earnings after adjusted tax burden amounted to SEK 23.7 M (8.1). To ensure that comparability between different periods of the year is not distorted, this item will be adjusted in the final accounts. The cash flow from current operations amounted to SEK 27.5 M (14.5) during the period. For additional information, contact: Anders Swensson, Chief Financial Officer Tel: +46 8 412 30 00 e-mail: anders.swensson@connecta.se or Christer Jacobsson, President and CEO Tel: +46 8 412 30 00 e-mail: christer.jacobsson@connecta.se Connecta AB is an Internet consulting company in the field of business development via the Internet. The Company offers services in the areas of Strategy, the Internet and Human Resource Management. With its total- approach concept, Connecta can be a full-service supplier to large companies and organizations, offering consulting services that strengthen customers' ability to conduct business in the new digital economy. Connecta currently has about 580 employees. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/03/14/20000314BIT00290/bit0001.doc http://www.bit.se/bitonline/2000/03/14/20000314BIT00290/bit0002.pdf