1999 Twelve Months Report

Europolitan reports strong 12 months result with pre-tax income up 53% to SEK 1,505 million * 222,000 net customer additions * Revenue of SEK 4,390 million * Operating cash flow up 41% * Hantera service management web site introduced * WAP portal launched 1999 Twelve Months Report At the extraordinary meeting on October 22, 1999, shareholders voted to change the company's fiscal year to April 1 to March 31 and as a result the present reporting period for the company is extended. A twelve months report is issued today and a 15 months report to March 31, 2000 will be issued on April 28, 2000. Customer Growth Europolitan's customer base increased to 846,000 as of December 31, 1999, including 151,000 active Europolitan EASY prepaid cards. A total of 222,000 (200,000) new customers were added in the twelve months, including 165,000 contract customers (112,000). During the fourth quarter 56,000 (50,000) customers were added, including 41,000 contract customers (28,000). Revenue Europolitan's consolidated twelve months net sales and other operating income increased 34% to SEK 4,390 million (SEK 3,281 million). Average monthly revenue per customer, excluding prepaid cards, increased 4% to SEK 571 (SEK 548), due to continued higher usage per customer and growth in value added services. Average monthly revenue per customer, including prepaid EASY customers, declined 4% to SEK 487 (SEK 507), reflecting the larger proportionate share of prepaid users in the customer base and their lower average usage compared with contract customers. Operating Expenses and Profit Operating expenses increased 28% to SEK 2,866 million (SEK 2,241 million) in the first twelve months, excluding capitalised expenses for own use. The increase is due to the higher number of customers, the high level of contract customer growth and higher depreciation cost resulting from enhanced network coverage and capacity. After net financial expense of SEK 19 million (SEK 57 million), profit after financial items increased 53% to SEK 1,505 million (SEK 983 million). After tax expense of SEK 422 million (SEK 228 million), net profit was SEK 1,083 million (SEK 755 million). Capital Expenditures ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/01/21/20000121BIT00070/bit0001.doc The full report http://www.bit.se/bitonline/2000/01/21/20000121BIT00070/bit0002.pdf The full report