INTERIM REPORT January - September 2004

INTERIM REPORT January - September 2004 · Net sales for the period July-September 2004 increased to MSEK 6.9 (same period 2003 pro forma* 2.7). For the period January-September 2004 net sales increased by 8 per cent to pro forma MSEK 18.8 (17.4). · Operating result for the third quarter improved to MSEK -1.5 (-4.4) and for the nine-month period to pro forma MSEK -6.5 (-9.0). The result after financial items for the third quarter was MSEK -1.4 (-2.0) and for the nine-month period pro forma MSEK -4.9 (-4.8) or SEK -0.04 per share. · The strong growth within Digital Broadcasting continued and during the third quarter the company received orders from the major broadcasting companies in Korea as well as from a radio broadcasting consortium formed by major Italian national radio networks. During the first nine months order intake for Digital Broadcasting increased by 37 per cent and net sales by 43 per cent. · For Header Compression sales were weaker than the previous year, although a recovery occurred during the third quarter. A test license for Effnet ROHC? was sold to the Kyocera Corporation, one of Japan's leading manufacturers of mobile terminals. · At the end of the period Effnet ROHC? version 2.1 and Effnet ROHC-LLA? version 1.0 (LLA: Link-Layer assisted profile) were released. The latter is a new implementation of an international standard and enables further compression of the data packets. The Effnet ROHC? product family thereby increases its competitiveness as regards future commercial integrations. · Liquid assets as per September 30 totalled MSEK 16.0 or SEK 0.15 per share. Shareholders' equity at the close of the period amounted to MSEK 19.4 or SEK 0.18 per share. Events after the end of the period · The recovery within Header Compression continued during October with an order for a test license for Effnet ROHC??from the Japanese company KDDI R&D Laboratories Inc. The KDDI Group is the second largest Japanese mobile operator. Thereby two very important reference orders concerning test licenses for Effnet ROHC? has been won in the last months. * For explanation of the pro forma accounts, se page 4. For further information, please contact: Hans Runesten, CEO, +46 (0)8 564 605 50 or +46 (0)702 80 26 26, Krister Moberger, CFO, +46 (0)8 564 605 50 or +46 (0)8 564 611 02 or visit the website: ------------------------------------------------------------ This information was brought to you by Waymaker The following files are available for download:

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