NeoNet’s Interim Report 1 January – 30 September 2006

The Third Quarter in Summary
·Operating revenues increased by 46% to SEK 91.4 m (62.6).
·Operating earnings before depreciation and net financial items (EBITDA) increased by 85% to SEK 19.4 m (10.5).
·Earnings before tax were SEK 10.0 m (1.5).
·Earnings after tax were SEK 6.6 m. The equivalent figure for the same period last year was SEK 1.5 m excluding the one-off effect of a deferred tax asset (24.1 incl. tax asset).
·Earnings per share before dilution were SEK 0.13. The equivalent figure for the same period last year was SEK 0.03 excluding the one-off effect of a deferred tax asset (0.48 incl. tax asset).
·Underlying cash flow was strengthened and amounted to SEK 9.7 m (5.3).

The First Nine Months in Summary
·Operating revenues increased by 58% to SEK 282.9 m (179.3).
·Operating earnings before depreciation and net financial items (EBITDA) increased by 95% to SEK 61.1 m (31.3).
·Earnings before tax were SEK 32.7 m (5.7).
·Earnings after tax amounted to SEK 22.5 m. The equivalent figure for the same period last year was SEK 5.7 m excluding the one-off effect of a deferred tax asset (28.3 incl. tax asset).
·Earnings per share before dilution were SEK 0.44. The equivalent figure for the same period last year was SEK 0.11 excluding the one-off effect of a deferred tax asset (0.56 incl. tax asset).
·Underlying cash flow was SEK 41.5 m (17.6).

Subsequent Events
·The Board of Directors has resolved that NeoNet will redeem in advance the debenture loan of nominally SEK 50.6 m that is subject to interest at 10%. The loan will be redeemed in December 2006.


NeoNet in the First Nine Months of 2006
NeoNet’s strong growth during the year is the result of several factors, the most important being our trading platform which meets the clients’ increasing demands for speed, stability and functionality. Focused sales efforts have led to a steady increase in the number of active clients during 2005 and 2006, contributing to growth. During 2006 we have seen an increasing interest in NeoNet’s services among major institutional investors in both Europe and the USA. These clients set great store by the fact that NeoNet does not engage in proprietary trading but only trades on behalf of clients, which eliminates the risk of conflicts of interest. NeoNet’s position as a neutral player will become an increasingly important sales-argument in the future.

NeoNet currently offers trading on 20 marketplaces and in order to further strengthen and broaden the offering, additional exchanges will be supplied on an ongoing basis. Next on the list is trading on Asian stock exchanges and on the German Eurex derivatives exchange, the latter providing clients with access to trading in liquid futures.

Trading on the Asian markets will begin with access to the Tokyo Stock Exchange, and will then gradually be expanded with more markets to reflect client demand. NeoNet’s clients have shown a growing interest in the Asiatic exchanges, and the addition of Asian trading creates a global exchange offering with round-the-clock trading.

During 2006 we have invested in new technical infrastructure to further enhance security, speed and stability. This investment has been made in view of the fact that clients’ trading is becoming increasingly advanced, which increases the importance of stability and minimal delay in order to offer the fastest possible access to the exchanges. This improvement will give NeoNet a better position as direct market access becomes an increased part of the clients trading.

In addition to brokerage services, NeoNet’s system and software services in the NeoNet eXchange Gateway (XG) product area also play a growing role. NeoNet XG is a central element in the company’s strategy to create a broader client offering and a solid earnings base which is not exclusively related directly to clients’ trading volumes.
Through the investments in upgraded infrastructure and with the addition of more market places, NeoNet has a cutting edge offering in terms of stability, performance and trading functionality.

For more information please contact:
Simon Nathanson
President and CEO of NeoNet
Tel. +46 8-454 15 51
simon.nathanson@neonet.biz