Interim report January-September 2006

January-September 2006
• Net revenue amounted to SEK 1,600 m (1,628).
• Net loss amounted to SEK -72 m (582).
• Earnings per share, before dilution, amounted to SEK -0.87 (7.30).
• The IBS Board of Directors took decision in August on an action program that includes relocating portions of product development and programming to medium and low-cost countries. The action program will produce restructuring costs of SEK 120 m that have been charged against third-quarter earnings.
• The loss after financial items amounted to SEK -88 m (591).
• Excluding restructuring costs and capital gains from the sale of subsidiaries, earnings after financial items improved by SEK 12 m and amounted to SEK 31 m (19) and the profit margin after financial items on a rolling 12-month basis improved to 4.0% (3.4%).

July-September 2006
• Net revenue amounted to SEK 477 m (520).
• Net loss amounted to SEK -93 m (0).
• Earnings per share, before dilution, amounted to SEK -1.11 (0.00).
• The loss after financial items amounted to SEK -115 m (2). Excluding restructuring costs, profit after financial items amounted to SEK 5 m (2).

Forecast for the full-year 2006
• The forecast for the full-year 2006, excluding restructuring costs of SEK 120 m, remains unchanged, meaning an expected profit margin of about 5% after financial items. Fourth quarter net revenue is expected to continue to decrease at the same rate as in the third quarter, compared with the preceding year, due to the divestment of subsidiaries, lower hardware sales and lower sales in IBS Automotive.

• As a result of the activity program, IBS expects an operating margin of about 7% for the full-year 2007 and about 10% for the full-year 2008.

Questions regarding this report will be answered by
President, Erik Heilborn,
tel. +46 (0)70 242 52 30 erik.heilborn@ibs.net
or
Executive Vice President and CFO, Per-Arne Sendrén,
tel. +46 (0)70 627 23 60, per-arne.sendren@ibs.net
or
Senior Vice President Communication and IR, John Womack,
tel. +46 (0)70 678 24 99, john.womack@ibs.net

A telephone and web conference will be held in conjunction with the publication of IBS’ interim report for the third quarter 2006. The presentation is held on 24 October at 9 a.m. (CET).

If you wish to join the telephone conference, please dial:
SWE +46 (0)8 5352 6408
UK +44 20 7806 1966
The presentation can also be followed via www.ibs.net or www.financialhearings.com