INTERIM REPORT FOR THE PERIOD JANUARY-SEPTEMBER 2007 HiQ INTERNATIONAL AB

HiQ delivers continued strong results and increased growth

• Net sales increase by SEK 110.1 million to SEK 690.8 (580.7) million, an increase of 19 percent.

• Operating profit (EBIT) increases by SEK 18.5 million to SEK 127.2 (108.7) million, an operating margin of 18.4 (18.7) percent.

• Pre-tax profit increases by SEK 18.5 million to SEK 127.9 (109.4) million.

• Profit after tax increases to SEK 91.4 (77.8) million.

• Earnings per share increase to SEK 1.82 (1.57).

• Cash flow from operations amounted to SEK 35.4 (26.4) million.

• HiQ has signed a new three-year framework agreement with Ericsson. The agreement covers all HiQ subsidiaries.

• HiQ has signed a framework agreement with OMX. The agreement covers all HiQ subsidiaries. The agreement is effective for two years.

• HiQ is expanding its quality and test operations in Sweden for mobile phones as a result of strong demand and new agreements.

• Lise Jonasen appointed new MD of HiQ’s Danish subsidiary.

•After the end of the period HiQ signed a new agreement with GTECH worth SEK 43 million.

• After the end of the period HiQ started business in Linköping.

• In accordance with the decision of the Annual General Meeting, an election committee has been formed consisting of Thomas Ehlin (Nordea Funds), Mirza Baig (Foreign and Colonial Investment Trust), Stefan Roos (SEB Funds), Ken Gerhardsen and Anders Ljungh.

2007 in brief
HiQ continues to develop strongly in 2007. Net sales for the period increased by 19 percent and the operating margin was 18.4 percent.

HiQ holds a clear position in the Nordic region as a supplier of services within communications, software development and simulation. The demand for HiQ’s services continues to be strong. During the period, new agreements have been signed with for example OMX, Ericsson and Jeppesen Systems.

HiQ works in long-term customer relationships with internationally leading players in many industries, such as Ericsson, FMV, GTECH, Nokia, Saab, SEB, Tele2 and Volvo.

HiQ has nearly 1,000 employees and has a very strong brand in the labour market, as shown in various surveys and measurements. The brand is important if we are to
attract highly capable employees, since the employment market remains highly competitive.


During the period HiQ continued to work on recruiting more staff, with very good results. Among other things, a new recruitment site was launched: World of HiQ (www.worldofhiq.com). HiQ has had a falling rate of staff turnover in recent quarters and this trend continued in the third quarter.

HiQ is developing well both in its various geographical markets and in its various market sectors. Skåne, Karlskrona and Stockholm are markets that are characterised by strong development for HiQ.

The integration of MobilEyes, which has offices in Stockholm, Moscow and San Francisco, has gone very well. MobilEyes strengthens HiQ’s offering in respect of the development of mobile products, applications and services based on Symbian. This is an area that is currently enjoying very good demand and joint projects have already been started.

For further information, please contact:
Lars Stugemo, President and CEO,
tel. +46 (0)8-588 90 000

Anna Jennehov, Head of Corporate Communications HiQ International,
tel. +46 (0)8-588 90 000, +46 (0)704-200 049