Changed margin forecast for 2007

IBS will not reach its margin forecast for full-year 2007. The revision is based on an assessment made by the Board of Directors and management of the effects of increased costs combined with lower license revenue during the first five months of the year, compared with the year-earlier period.

During the first five months of the year, IBS’ costs were higher than planned. The cost deviations were mainly related to personnel. Planned restructuring measures, pertaining mainly to a consolidation of offices and off-shoring of parts of customer related programming and product development, have been implemented at a lower-than-expected pace, which means that the favorable effects on costs of such actions will not impact on earnings for 2007 to the extent required to achieve the previously announced earnings forecast of an operating margin of approximately 7% for the full-year 2007.

The Board of Directors and management will during the following weeks analyze and plan possible measures to accelerate the restructuring program further. The conclusions of this work will be presented in the interim report for the period January-June that will be published on July 19, 2007.

IBS’ long-term financial objective of an operating margin of at least 10% stands firm.



For further information, please contact:

Erik Heilborn, President and Chief Executive Officer, IBS AB
Mobile: +46 (0)70 242 52 30

John Womack, Senior Vice President Communications and IR, IBS AB
Tel: +46 (0)8 627 24 99
Mobile: +46 (0)70 678 24 99