Quarterly Report January - June 2003

• Invoicing for the period amounted to SEK 38.3 Billion (SEK 41.0 Billion) • Profits before tax for the period amounted to SEK -4.9 Billion (SEK -10.1 Billion) • Profits per share amounted to SEK -0.21 (SEK -0.46) • Continued positive cash flow • Entered into agreements worth USD 9.5 - 10.5 million • Cost reductions according to plan Second quarter 2003 Invoicing for the first six months of 2003 reached SEK 38.3 Billion (41.0). The weakened dollar has affected the company´s sales negatively by approx. SEK 3.6 Billion compared with the same period for the preceding year. Operating profit for the six months amounted to SEK -4.5 Billion (SEK-10.9 Billion). The restructuring that has been implemented during the last twelve months has now had an effect. The inflow of orders is stronger than ever and the cost mass is now at the correct level. All in all this means that the company is looking towards a bright future. During the period, the MD of MultiQ acquired 500,000 shares of principal owner Spyder Technology Holdings B.V. Greatest agreement in the company´s history During the latter part of the period an agreement was signed with EssNet AB regarding the supply of lottery terminal displays to a total value of approx. USD 9.5 - 10.5 million. The supply of the specially designed screens will begin at the end of 2003, while the greater part will be supplied during 2004. The screens are part of a major lottery system. The agreement comprises four different projects in which companies including Norsk Tipping (Norway) and Tattersall (Australia) are end customers of EssNet. The long awaited breakthrough in England also occurred during the period. Inflow of orders and invoicing increased many fold during the period and continued good demand is expected for the remainder of the year. Deliveries have been made to ELC, one of the major toy retailers in England and to Waitrose, which is a major supermarket chain. The inflow of orders relates to supplies during the coming quarter to companies such as Vodafone, Virgin and a number of smaller clients. The company has also had successes in Germany. MultiQ was chosen by Metro, which is the largest everyday commodity retail group in Europe, as its collaborative partner for displays in checkout situations. Similarly, Ford´s European car retailer organisation, with its headquarters in Germany, has chosen MultiQ as its sole supplier of client-adapted flat displays. MultiQ´s potential is therefore in the 12,000 car showrooms that Ford has in Europe. During the period the company has strengthened the sales organisation in Germany through three new partners who will principally influence the industrial market sector. Other markets, i.e. Scandinavia and BeNeLux, have indicated stable inflow of orders and invoicing. Continued positive cash flow and cost reductions according to plan The cash flow from current activities amounted to SEK 7.8 Billion and the Group´s total cash flow SEK 2.6 Billion. The rationalisation and economy measures implemented during Autumn 2002 have now achieved full success. The Group´s fixed costs compared to those of the same period for the preceding year have been reduced by SEK 6.0 Billion to SEK 14.9 Billion, approx. 29% lower for the same period of the preceding year. Market development There is absolutely no doubt that the market for flat displays will continue to increase and will surpass that of traditional CRT screens. The sector that MultiQ will primarily influence, i.e. clients who require robust flat displays adapted to their specific needs, will also indicate good growth. The use of screens as information carriers in shops, car showrooms or other public places, so-called info points, is currently in its infancy. The company expects strong future growth in this area. In addition, other more traditional client sectors that MultiQ works in indicate increased willingness to invest. Financial position The group´s liquid funds and unused credits amounted, in total, to SEK 8,6 million. The group´s liquid funds amounted to SEK 8,3 million (SEK 13,3 million). Solvency amounted to 42,0% (52,8%). Investments in fixed assets amounted during the period to SEK 0.2 million (SEK 0,4 Million). The parent company The parent company´s operating profit/loss amounted to SEK -1,8 million (SEK -2,3 million). The outcome after financial items amounted to SEK -2,3 million (SEK -2,1 million). Investments in fixed assets in the parent company amounted to SEK 0 million (SEK 0 million). Liquid funds as at 30 June 2003 amounted to SEK 0.1 million. Accounting principles This present interim report has been drawn up in accordance with the Accountancy Council´s recommendation pertaining to Interim Reports (RR:20). The same accounting principles and methods of calculation have been employed in the quarterly report as in the latest annual accounts. An application of the Accountancy Council´s recommendation RR:9 affords the company the opportunity to post a deferred tax receivable that is attributable to the deficit deductible of SEK 149,5 million. This tax receivable has not been included in these present final accounts either. Quotation The MultiQ share has been quoted on the Stockholm Stock Exchange´s O-list since 7 December 1999. Dates for future reports Report quarter 3 - 30 October 2003 Final accounts communiqué - 3 February 2004 Malmö 2003-07-31 MultiQ International AB (publ) Jonas Wästberg, VD ...............................................................