Quarterly Report January - March 2003

• Invoicing for the first quarter amounted to SEK 18.2 million (SEK 23.7 million) • Profit/loss before tax for the quarter amounted to SEK -3.0 million (SEK -4.6 million) • Breakthrough in the English ,market, deliveries during Q2-Q3 • Cooperation agreements concluded with Metro, Ford and SAS • Improved performance expected for next quarter • Positive cash-flow and cost reductions according to plan First quarter 2003 Invoicing during the first quarter was somewhat lower than expected and also lower than the corresponding period of the preceding year. The currency exchange rate effects on turnover compared with the same period last year, produced a negative effect of SEK 1.8 million. Otherwise the lower turnover during the quarter is not primarily due to low demand but to certain carefulness with investment decisions. MultiQ has not lost any major orders but customers are postponing new orders with the unveiling of new screens before them. During the period the long-awaited breakthrough in England has taken place. An order from ELC, one of England´s largest toy retailers came in at the same time as a major order from Waitrose, one of England´s major department store chains. Similarly, MultiQ is to supply screens to Kwik-Fit, Europe´s largest tyre and car workshop chain. During the first quarter orders were taken in England to a value of c. SEK 5 million. These are due to be delivered during the next quarter. The company expects the order flow from England to remain good for the rest of the year. The period´s order inflow in England amounts to twice the value of all sales in England during the whole of 2002. In Germany, too, important orders and cooperation agreements have been concluded. MultiQ has been selected by Metro, Europe´s largest daily commodities trading group, for cooperation relating to screens in a checkout environment. An initial pilot installation was delivered during the period. The European car dealership organisation Ford, with its headquarters in Germany, has also chosen MultiQ as supplier of screens. Ford´s distributor network encompasses c. 12 000 salesrooms in Europe and, in the future, these will gradually be able to replace their existing equipment with customer-friendly flat screens from MultiQ. Within the airport sector, too, where MultiQ’s tradition is strong, there have been deliveries made to airports in Hanover, Leipzig and Budapest. The company expects further deliveries to be made to other airports in Germany during the next quarter. Similarly, a framework agreement has been concluded with SAS. There, MultiQ has been chosen to supply SAS installations in public environments at airports around the world. Other markets, i.e. Scandinavia and Benelux have showed a normal order flow and invoicing. Large volumes have been supplied to IKEA and Fujitsu Invia, the Nordic Region’s largest supplier of IT solutions that, in turn, supply MultiQ screens to Hennes & Mauritz, Coop and others. Positive cash-flow and cost reductions according to plan The cash flow from the ongoing business was SEK 6.1 million and the group´s total cash flow was SEK 1.7 million. The rationalisation and economy measures that were carried out during the autumn of 2002 have produced results. The group´s fixed costs have, compared with the same period of the preceding year, been reduced by SEK 3.2 million to SEK 7.0 million, i.e. c. 30% lower than the corresponding period last year. The margin development has continued to be good for the group as a whole. Against the background of the current order flow and the fact that the group´s costs have been significantly reduced, we look forward to an improved performance during the next quarter. Market development MultiQ has recorded a continued good market growth for flat screens. During 2002 flat screens constituted c. 41% of the total market. The company expects this share to continue to increase whereby it will overtake CRT screens during 2003. MultiQ has also recorded an increased use of flat screens in public and exposed environments, e.g. airports, checkouts and car salesrooms. Within this sector the use of touch screens, i.e. screens where the user points directly at the screen and controls a computer via the screen, is also increasing. The group´s profit/loss MultiQ´s operating profit/loss for the first quarter amounted to SEK -2.7 million (SEK -4.4 million) and the profit/loss after financial items to SEK -3.0 million (SEK -4.6 million). Financial position The group´s liquid funds and unused credits amounted, in total, to SEK 8.0 million. The group´s liquid funds amounted to SEK 7.4 million (SEK 11.4 million). Solvency amounted to 48.1% (47%). Investments in fixed assets amounted during the period to SEK 0.1 million (SEK 0 Million). The parent company The parent company´s operating profit/loss amounted to SEK -0.8 million (SEK -0.8 million). The outcome after financial items amounted to SEK -1.4 million (SEK -0.8 million). Investments in fixed assets in the parent company amounted to SEK 0 million (SEK 0 million). Liquid funds as at 31 March 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 110 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. Annual meeting of shareholders The ordinary annual general meeting of shareholders will be held on Wednesday 4 June 2003 at 14.00 at Hotel Jägersro, Jägersrovägen 160 in Malmö. The Board will propose to the general meeting that no dividend be declared. Dates for future reports Annual General Meeting - 4 June 2003 Report quarter 2 - 31 July 2003 Report quarter 3 - 30 October 2003 Final accounts communiqué- 3 February 2004 The annual report and statement of accounts is available from MultiQ and will be circulated to those shareholders who have requested them. The annual report and statement of accounts is also available on MultiQ’s homepage www.multiq.se. Malmö 2003-05-06 MultiQ International AB (publ) Jonas Wästberg, VD ...............................................................