INTERIM REPORT FOR THE PERIOD JANUARY-JUNE 2004 HiQ INTERNATIONAL AB (publ), company registration number 556529-3205

INTERIM REPORT FOR THE PERIOD JANUARY-JUNE 2004 HiQ INTERNATIONAL AB (publ), company registration number 556529-3205 HiQ - strong growth and good profitability - Net sales increase by SEK 30.0 million to SEK 233.4 (203.4) million, an increase of 15 percent - Profit before goodwill (EBITA) increases by SEK 9.2 million to SEK 23.6 (14.4) million, equivalent to an EBITA margin of 10.1 (7,1) percent - Pre-tax profit increases by SEK 9.5 million to SEK 14.4 (4.9) million - Profit after tax increases by SEK 6.8 million to SEK 7.4 (0.5) million - Earnings per share increase by SEK 0.15 to SEK 0.16 (0.01) - On 29 April the Annual General Meeting elected Christina Ragsten Pettersson and Jukka Norokorpi to the Board - The AGM also approved a dividend of SEK 0.45 per share, totalling SEK 21.1 million, which was paid out on 7 May 2004 - HiQ has been selected as a preferred supplier by Ericsson and has signed a 3-year framework agreement covering research & development as well as technical documentation First half 2004 in brief The positive development in the first quarter this year continued in the second. Demand in HiQ's markets has continued to increase as clients review their investment needs and dare to invest in new development. Clients are demanding advanced, customised solutions and HiQ has continued to win market share in a competitive market. This has resulted in substantially increased net sales and a greatly improved result. Within the telecoms segment, which is so important for HiQ, there has been an increased propensity to invest on the part of both suppliers and operators. During the period we have seen increased activity among operators who are focusing on developing services and increasing the content available on mobile phones. HiQ signed framework agreements during the period with Vodafone Sweden and Telenor AB. Demand from telecoms suppliers has increased in respect of both mobile terminals and infrastructure. In June HiQ was selected as a preferred supplier to Ericsson and signed a 3-year framework agreement covering research & development as well as technical documentation The defence sector continue to be important to HiQ, and in the last quarter we have seen a stabilised market within this segment. A number of new orders were signed in the first half, including two relating to development of training simulators for the JAS 39 Gripen fighter aircraft. HiQ's position in the market has strengthened in all its segments and regions. We are continuing to win important orders and during the period we recruited 66 new employees. For further information, please contact: Lars Stugemo, President and CEO, tel.: +46 (0)8-588 90 000 Annika Larsson, CIO and Investor Relations Manager, tel.: +46 (0)8-588 90 015, +46 (0)704-200 103 Parent company address HiQ International AB (556529-3205) Mäster Samuelsgatan 17, 9 tr Box 7421 103 91 STOCKHOLM Sweden tel.: +46 (0)8-588 90 000 fax: +46 (0)8-588 90 001 www.hiq.se ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/08/17/20040817BIT20040/wkr0010.pdf The full report