Year-End Report 1 January 2004 – 31 December 2004

Year 2004 • Net sales increased by 16% to SEK 220.8 million (190.7). • Operating income increased by 51% to SEK 24.9 million (16.5). Operating margin was 11.3% (8.6). • Profit before tax increased by 45% to SEK 29.3 million (20.2). • Net profit increased by 42% to SEK 20.2 million (14.2). • Cash flow from operating activities amounted to SEK 35.9 million (5.5). • In January 2004, Carmen Systems signed a long-term rental agreement with Delta Air Lines and its low-fare service, Song. Delta is the world’s second largest airline. • Several other key deals further strengthened Carmen Systems’ position in our target markets. Important events after Year-End • In February 2005, Rail Gourmet Spain signed a long-term rental agreement for Carmen Crew Pairing and Carmen Crew Rostering. • In February 2005, DSB, Denmark's largest provider of passenger rail services, signed an agreement with Carmen Systems for the development of a new passenger fleet solution for its national and international passenger services. A word from CEO, Per Norén 2004 saw Carmen Systems deliver strong financials and achieve true market breakthrough in North America. The year also brought new agreements with Virgin Atlantic Airways and Britannia Airways, increased demand for Carmen’s software products in the European airline market, and an interesting, new segment in mid-sized airlines. We see an increased need for advanced, and perhaps more importantly, effective, resource optimization in all markets. The Airline industry showed an 8% increase in traffic in 2004, sparked by an unexpectedly strong economy. Profitability, however, is still the key concern and at today's levels and load factors, carriers will have to seriously consider further reducing capacity. This poses continued opportunities for Carmen in the future. Carmen now leads the global airline crew planning segment, assisting 22 of the world’s 100 largest airlines. We see huge potential for further penetration, especially in the North American and Asian markets. This growth will be aided by the launch of our Integrated Crew Management System in 2005. The solution will provide optimization in all phases of the crew management process and spans the entire spectrum of crew resource management, from long-term planning to day of operation. The software products used are Carmen Manpower Planning, Carmen Crew Pairing, Carmen Crew Rostering, Carmen Crew Tracking and Carmen Crew Recovery. The Railway industry is also facing great changes and Carmen is committed to assisting railway operators as these changes take place. Different markets, however, pose different challenges and require different methodologies. Our strategy is simple, to continue to use our domain knowledge, work close to the client, and apply optimization in the most beneficial way. We now have a reference implementation at Europe’s largest railway, Deutsche Bahn, which is showing significant savings. This further strengthens our foothold in this sector. In 2005 we will continue to deepen our presence in the airline and railway markets and to enter new market segments and industries where we see clear business opportunities. For further information, please contact Per Norén, CEO, Phone: +46 31 7208101 Mobile: +46 703 368101 E-mail: per.noren@carmensystems.com or Jan-Olof Ohlsson, CFO, Phone: +46 31 7208191 Mobile: +46 739 788191 E-mail: jan-olof.ohlsson@carmensystems.com