Interim report for the period January 1 - March 31, 2000

Interim report for the period January 1 - March 31, 2000 * Consolidated net sales amounted to SEK 275 million (303), with a loss after net financial items of SEK -52 million (19). The loss per share was SEK -1.82 (0.84). * The separation of the consulting operations into eBusiness and Technical Systems has been completed and work is under way to list Technical Systems separately on the stock exchange. As an element in this effort, Frontec has sought the approval of the Swedish tax authorities to shorten its fiscal year. * Demand for our services in eBusiness and Technical Systems remains good. Selective recruitment efforts during the latter part of 1999, along with the expenses for the separation, are affecting sales and profit. * Frontec eBusiness' net sales amounted to SEK 170 million (168), with a profit after net financial items of SEK 3 million (7). * Frontec Technical Systems' net sales amounted to SEK 81 million (80), with a profit after net financial items of SEK 6 million (9). * During the period, Frontec's ownership interest in Viewlocity was reduced to 45%, and it is being reported as an associated company. Despite a volatile stock market, planning for a Nasdaq listing is proceeding according to schedule. Frontec Group Frontec's net sales in the first quarter of 2000 amounted to SEK 275 million (303). Due to the fact that Frontec's ownership interest in Viewlocity amounts to 45% as of January 1, 2000, only the share of Viewlocity's profit or loss is reported in the consolidated income statement, according to the equity accounting method. For comparable units, excluding Viewlocity, sales rose by 3% to SEK 275 million (268). Due to selective recruitment efforts by the consulting operations during the latter part of 1999, sales growth has been marginal. The consolidated loss after net financial items was SEK -52 million (19), which includes a charge of SEK 42 million for the share of the loss reported by Viewlocity. The operating loss after goodwill amortization amounted to SEK -2 million (-11). Separate reporting has been introduced for the eBusiness and Technical Systems consulting operations in order to underscore their separation and individual profiles. The efforts to prepare a separate listing of Frontec Technical Systems and a Nasdaq listing of Viewlocity have high priority. The Group's results were charged with expenses for the separation and organizational development at Frontec Technical Systems and eBusiness, as well as expenses in connection with the planned listings of Frontec Technical Systems and Viewlocity. SPP's announced refund of surplus insurance contributions of SEK 48 million has not been taken into account in the quarterly results. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/05/09/20000509BIT00420/bit0001.doc The full report http://www.bit.se/bitonline/2000/05/09/20000509BIT00420/bit0002.pdf The full report