Interim report for the period July 1, 2000 - March 31, 2001

Interim report for the period July 1, 2000 - March 31, 2001 - and the third quarter of the split fiscal year Positive quarterly result * For the quarter, Frontec's net sales amounted to SEK 279 million (275, for comparable units 263). * Profit after net financial items amounted to SEK 3 million (-52, for comparable units -8). * Consolidated net sales for the first nine months of the fiscal year amounted to SEK 760 million (867, for comparable units 781). * The consolidated loss after net financial items for the period was SEK -109 million (-18, for comparable units -16). * Frontec eBusiness (in its new form) reported net sales of SEK 415 million (429), with a profit after net financial items of SEK 3 million (14). * BlueLabs' net sales for the period amounted to SEK 228 million (227), with a profit after net financial items of SEK 16 million (25). * Frontec's share of Viewlocity's result is no longer consolidated, since the book value of the Group's holding in Viewlocity is nil as of the start of the year. * The loss per share was SEK -3.87 (0.71). Outlook The Group's profitability improved during the period despite a jittery market. Efforts are under way to streamline operations and create a strong group based on integrated eBusiness solutions for large, established companies and organizations. Administrative efficiencies, marketing activities and the focus on the core business will continue to have an impact during the next half-year. In the last quarter Frontec eBusiness has changed its business model from a regional perspective to a national focus on business areas. Efforts have been made to improve profitability through cost reductions and offensive measures to raise revenues. In February Venture Zone, which helps operations that are not part of eBusiness to find a new ownership structure, sold Frontec Research and Technology, FRT, in line with Frontec's focus on eBusiness The sale resulted in a small capital loss and a positive cash flow of approximately SEK 20 million. BlueLabs is continuing its process of becoming independent. A new president, Ulf Pettersson, has been recruited. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/15/20010515BIT00480/bit0001.doc Full Report http://www.bit.se/bitonline/2001/05/15/20010515BIT00480/bit0001.pdf Full Report