YEAR-END RELEASE JANUARY – DECEMBER 2008

Strong development with quality, profitability and growth

January – December 2008
• Net sales increase by SEK 207.8 million to SEK 1 181.5 (973.7) million, an increase of SEK 21 percent
• Operating profit (EBIT) amounts to SEK 193.9 (182.3) million, an operating margin of 16.4 (18.7) percent
• Pre-tax profit amounts to SEK 197.8 (183.8) million
• Profit after tax amounts to SEK 142.9 (131.7) million
• Earnings per share amount to SEK 2.80 (2.62)
• Cash flow from operations amounted to SEK 172.0 (81.0) million
• The Board proposes that SEK 1.40 per share, a total of around SEK 72 million, is distributed to the share holders through a split and compulsory redemption procedure.

October – December 2008
• Net sales increase by SEK 36.6 million to SEK 319.4 (282.8) million, an increase of 13 percent
• Operating profit (EBIT) amounts to SEK 50.5 (55.1) million, an operating margin of 15.8 (19.5) percent
• The operating profit is negatively affected with SEK 6.7 million, by the wound up of a business area in Gothenurg. The operating EBIT-margin is 17.9%.
• Pre-tax profit amounts to SEK 52.0 (55.9) million
• Profit after tax amounts to SEK 38.5 (40.2) million
• Earnings per share amount to SEK 0.75 (0.80)

Significant events in 2008
• HiQ acquired Ace Simulation of Linköping, Sweden
• HiQ acquired TSG Test Solutions (HiQ Quality Services) of Espoo, Finland
• HiQ is top ranked in Veckans Affärer’s list of Sweden's best IT consultancies in 2008
• HiQ is top ranked in Universum’s list of Sweden’s best employers in 2008
• HiQ received a new order worth SEK 34 million from the Swedish Defence Material Administration (FMV)
• HiQ signed new framework agreements with the Swedish National Post and Telecoms Agency (PTS), BAE Systems Bofors, Ascom Sweden AB, Veikkaus, TDC Sweden and Saab AB among others.

2008 in brief
2008 was a very strong year for HiQ. Sales increased by 21 percent to SEK 1 181.5 million and the operating profit amounted to SEK 193.9 million, a margin of 16.4 percent. Cash flow improved significantly, amounting to SEK 172.0 million.

In 2008, HiQ expanded its operations geographically and advanced its proficiency. We work with more customers and in more industries than ever before. HiQ is growing organically, supplemented with acquisitions, and two new companies were acquired during the year – in Linköping and Espoo, Finland.

The economic situation has led to restructuring in many industries, creating opportunities for HiQ to win new assignments and further strengthen its market position. A weaker market is advantageous for companies like HiQ that have a strong balance sheet, a strong brand, good customer relations and very strong cash-flows.

In a more uncertain market, the importance of fine-tuning and adapting operations to ensure continued high efficiency increases. This type of work has been ongoing all year. In the fourth quarter, a business area in Gothenburg (HiQ Interactive) was wound up and the offering integrated with other operations in Gothenburg. The winding up will affect earnings with a cost of SEK 6.7 million.

In February we acquired Ace Simulation AB (now HiQ Ace), based in Linköping, which employs about 30 people. HiQ Ace’s clients are internationally leading players in the defence, automotive and telecoms sectors. HiQ Ace was consolidated 15 February 2008.

In June, we announced the acquisition of TSG Test Solutions, a specialist IT consultancy with offices in Espoo, Finland. TSG, now known as HiQ Quality Services, specialises in quality assurance and project management. Its clients include leading companies in manufacturing, telecoms and banking and finance. HiQ Quality Services was consolidated 2 July 2008.

With its nearly 200 employees, HiQ Finland has now reached a critical mass that opens up new business opportunities. HiQ Quality Services further strengthens HiQ’s quality assurance offering. HiQ is now a strong partner for companies needing help assuring quality in large, complex IT projects.

HiQ has a strong position as a specialist service provider with broad geographic and market coverage, as well as very strong customer relationships with leading international companies and established authorities in the Nordic region. HiQ has a flexible delivery model and implements projects on site with customers, in its own facilities or via a development centre in Russia.

HiQ works with customers in many industries, including Veikkaus, the Swedish Emergency Management Agency, Nokia, Ericsson, the Swedish National Tax Board, SEB, Tekes, Tele2 and Volvo.

HiQ works with technology that makes communication possible in our daily lives – at home, at work, in our cars, etc. And the need for communication is increasing – a development that creates both high demand and many opportunities. Technology that enables communication is constantly developing, regardless of the economic situation.

For additional information, please contact:

Lars Stugemo, President and CEO, HiQ
Tel. +46 (0)8-588 90 000

Annika Billberg, Head of Corporate Communications and Investor Relations, HiQ
Tel. +46 (0)8-588 90 015, +46 (0)704-200 103


HiQ International AB (publ) company registration no. 556529-3205
Mäster Samuelsgatan 17, 9th Floor
Box 7421
SE-103 91 Stockholm
Sweden
Tel. +46 (0)8-588 90 000
Fax +46 (0)8-588 90 001
www.hiq.se