YEAR-END RELEASE JANUARY - DECEMBER 2007 HiQ INTERNATIONAL AB

2007 – a record year for HiQ, with accelerating growth and substantially increased profits

• Net sales increase by SEK 172.3 million to SEK 973.7 (801.4) million, an increase of 21 percent
• Operating profit (EBIT) increases by SEK 27.4 million to SEK 182.3 (154.9) million, an operating margin of 18.7 (19.3) percent
• Pre-tax profit increases by SEK 27.6 million to SEK 183.8 (156.2) million

• Profit after tax increases to SEK 131.7 (111.5) million

• Earnings per share increase to SEK 2.62 (2.25)

• Cash flow from operations amounted to SEK 81.0 (64.6) million

• The Board’s dividend proposal to the AGM is SEK 1.30 per share corresponding to SEK 66 million, which is in line with HiQ’s dividend policy.

• HiQ acquired MobilEyes, a pioneering company in the field of Symbian

• During the year HiQ signed around 40 larger agreements with clients such as FMV, OMX, Ericsson and others

Events in the fourth quarter:
• Net sales in the fourth quarter increase by SEK 62.1 million to SEK 282.8 (220.7) million, an increase of 28 percent

• Profit after tax in the fourth quarter increases to SEK 40.2 (33.8) million

• Earnings per share increase to SEK 0.80 (0.68)

• HiQ signed a new three-year agreement with GTECH Corporation worth SEK 43 million.

• HiQ signed a three-year framework agreement with a global vehicle manufacturer

• HiQ started up operations in Linköping, the subsidiary HiQ Linköping

• After the end of the period HiQ signed a new framework agreement with the Swedish National Post and Telecom Agency


2007 in brief – HiQ’s strongest year to date

HiQ is reporting a very strong 2007 – increased profits, increased growth, increased geographical spread and a large number of new employees and clients. Sales for the period increased by 21 percent and the operating margin was 18.7 percent. The number of employees has risen above 1,000 for the first time.

HiQ today holds a clear position as a specialist IT consultancy. Centred on the Nordic region, HiQ provides services within the areas of communications, software development and simulation to clients with global operations.

Demand for HiQ’s services was strong during 2007. A number of important contracts and framework agreements with leading players such as GTECH, FMV, OMX, Ericsson,

Ascom, GVA Finland and Heidelberger Druckmaschinen. In addition, HiQ works in long-term customer relationships with internationally leading players such as Nokia, Saab, SEB, Tele2 and Volvo.

HiQ has a strong brand both in the labour market and among clients, as is shown time and time again in various surveys and measurements. The brand is of great importance if we are to attract highly capable employees, since the employment market remains competitive.

HiQ has been very successful at recruiting new employees and in 2007 the number of employees increased by more than 250 people. The total number of staff is above 1000.

In 2007 HiQ acquired MobilEyes, a pioneering company in the area of Symbian development. The company has been successfully integrated into HiQ and is engaged in the development and testing of mobile applications.

HiQ is developing well in all its various geographical markets and in all its various market sectors. HiQ’s operations in Skåne and Stockholm have been characterised by particularly strong development.

HiQ started up a new business venture in Linköping during the fourth quarter, based on existing client relationships as well as increased demand in the region. HiQ Linköping is expected to employ around 30 people within a year.