Interim report, January-June 2005

Framfab Boosts Revenue and Doubles Profit

- prepared in accordance with IFRS # Net revenue for January-June was SEK 205.7 million (169.9), an increase of 21% from the same period of 2004. Net revenue for the second quarter of SEK 118.1 million (82.4) was 43% higher than the corresponding period of 2004. Net revenue per employee on an annual basis for January-June was SEK 1,091 thousand (966), up 13% from January-June 2004. Organic revenue growth based on net revenue for comparable units was 6.5% for the first half of the year. # The profit after tax increased from January-June 2004 by 124% to SEK 13.0 million (5.8). The profit after tax rose from the second quarter of 2004 by 111% to SEK 7.4 million (3.5). The January-June operating profit (EBIT) was up by 136% from 2004 to SEK 13.9 million (5.9), while the second quarter operating profit was up by 226% from 2004 to SEK 8.8 million (2.7). Operating margins were 7% in the period from January-June 2005 compared to 3% for the same period last year. Framfab has posted an operating profit for the sixth quarter in succession. # Earnings per share came to SEK 0.01 (0.01) for January-June and SEK 0.01 (0.00) for the second quarter. # Framfab acquired Oyster Partners Ltd in London and consolidated the company with effect 1st of May. The integration of Oyster’s operations with Framfab UK has created the biggest integrated interactive marketing and web consulting business in the UK, employing a total of 185 people. # Cash flow from operating activities was SEK 8.6 million (-19.4) for the first half of the year and SEK 2.4 million (10.1) for the second quarter. Including partial payment for Oyster of SEK 121.7 million, cash flow was SEK -115.3 million (124.6) for January-June and SEK -121.1 million (158.2) for the second quarter. Liquid funds were SEK 46.2 million as of June 30. # Jesper Andersen, MD of Framfab Denmark and Sweden, is appointed Executive Vice President of Framfab AB. # The June 21 general shareholder meeting approved Katarina Bonde and Steve Callaghan as newly appointed board members in Framfab AB.