LBI continues to experience strong development

Framfab AB changed name to LBI International AB at 1 August. This interim report for January-June 2006 refers to the former Framfab business with an appendix at the end of the report that includes Framfab and LB Icon summary financial data for the first half year. Financial consolidation began July 31, 2006, and will be reported for the first time in the LBI January-September interim report

# Net sales for January-June were EUR 31.0 million (22.5), an increase of 41% from the same period of 2005. Net sales for the second quarter of EUR 15.3 million (12.8) were 21% higher than the corresponding period of 2005. At EUR 137 thousand (120), net sales per employee on an annual basis for January-June were up by 17% from the first half of 2005. # The profit after tax increased from January-June 2005 by 15% to EUR 1.6 million (1.4). The profit after tax for the second quarter of EUR 0.3 million (0.8) represented a decrease of EUR 0.5 million after EUR 0.7 million in restructuring costs. The January-June operating profit rose by 87% from 2005 to EUR 2.7 million (1.5), while the second quarter operating profit increased by 19% from 2005 to EUR 1.0 million (0.9). The operating margin was 9.0% (6.7) for January-June and 7.3% (7.4) for the second quarter. The operating margin was 12% after reversal of restructuring costs. # Following the 50:1 reverse split in the second quarter, earnings per share came to EUR 0.07 (0.06) for January-June and EUR 0.01 (0.03) for the second quarter. # Cash flow from operating activities was EUR 2.5 million (1.0) for January-June and EUR 1.6 million (0.3) for the second quarter. Liquid assets were EUR 7.5 million as of 30 June. . # The registration of the merger of Framfab AB and LB Icon AB with the Swedish Companies Registration Office on 31 July represented the formation of Europe’s leading digital and interactive agency. The new Group has been operating since 1 August under the name of LBI International AB. # In addition to its current listing on the Stockholm Stock Exchange, LBI International AB has been listed on Eurolist by Euronext in Amsterdam since 1 August. # In connection with the registration of the merger on 31 July, a new Board was appointed, consisting of Katarina G. Bonde, Michiel Mol, Fred Mulder, Robert Pickering and Sven Skarendahl (Chairman). Mr Pickering was appointed new CEO on 1 August. # LBI’s Framfab Denmark subsidiary reinforced its leading role during the second quarter by winning two Gold Lions and one Silver Lion in Cannes, as well as one Gold and one Bronze at The One Show. # LBI’s Dutch subsidiary Lost Boys won three prestigious awards. They included a golden and silver spin award for best interactive communications and a golden Esprit for the best directmarketing/promotional campaign. # LB Icon was dissolved 31 July and does not submit an interim report for the period January-June. In the appendix at the end of this interim report pro forma regarding LBI for 2005 and the first half year of 2006 are presented.