INTERIM REPORT FOR THE PERIOD JANUARY-SEPTEMBER 2004 HiQ INTERNATIONAL AB

INTERIM REPORT FOR THE PERIOD JANUARY-SEPTEMBER 2004 HiQ INTERNATIONAL AB HiQ - good demand and strong development in 2004 ·Net sales increase by 21 percent to SEK 354.9 (292.4) million ·Profit before goodwill (EBITA) increases by 81 percent to SEK 40.0 (22.1) million, equivalent to an EBITA margin of 11.3 (7.6) percent ·Pre-tax profit increases by SEK 17.9 million to SEK 25.6 (7.7) million ·Profit after tax increases by SEK 12.9 million to SEK 13.7 (0.8) million ·Earnings per share increase by SEK 0.27 to SEK 0.29 (0.02) ·Cash flow from operations during the period amounts to SEK 16.3 million ·HiQ has once again been selected as a preferred supplier by Ericsson and has signed a 3-year framework agreement covering research & development ·In August HiQ acquired the IT consultancy Cats, which has around 50 employees - thereby strengthening its position in the finance and industry sectors ·HiQ has been selected as A-level supplier to the Swedish Defence Materiel Administration (FMV) and the Swedish Agency for Public Management in the procurement by of IT services for 51 authorities ·A reduction in the share premium reserve has been completed, increasing the unrestricted distributable equity by SEK 180 million ·A nominating committee has, according to the decision made by the AGM, been formed including Peter Rönström, Caroline af Ugglas, Anders Ljungh and Ken Gerhardsen 2004 in brief HiQ are specialised in advanced, high-tech solutions and has seen a marked increase in demand for its services over the year. In a competitive market, HiQ has continued to gain market shares, increase net sales and strengthen profits. Throughout 2004 HiQ has exploited the opportunities to grow. The work on specialising the service range and broadening the operations to several business sectors pays off. Today HiQ is able to focus entirely on winning new orders and further strengthening and advancing its position. Following the downturn, there is once again a great need for investment in new customised products and systems. HiQ is well equipped to meet the growing demand. During the period HiQ recruited 101 employees. In August HiQ announced the acquisition of the IT consultancy Cats, with around 50 employees. HiQ Cats strengthens HiQ in Stockholm as well as in the important finance and industry sectors. After the end of the period HiQ has established a new office in Karlskrona in order to better be able to meet the needs from existing and new clients in the region. HiQ employs approximately 10 people in Karlskrona at present. The telecoms sector continues to drive technological development and during the year the propensity to invest has strengthened substantially. This is true for both suppliers and operators. Operators are increasingly focusing on developing services and increasing the content available on mobile terminals. Telecoms suppliers are continuing to invest in developing both mobile terminals and infrastructure. The development in the telecom sector favours HiQ since the company has over ten years' experience of working on high-tech development in the telecoms industry. HiQ works with suppliers, operators and end-users as well as with regulatory issues. For further information, please contact: Lars Stugemo, President and CEO, tel.: +46 (0)8-588 90 000 Annika Larsson, 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 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/2004/10/26/20041026BIT20040/wkr0001.pdf The full report