NeoNet’s Interim Report 1 January – 31 March 2005

Maintained Operating Earnings and Improved Cash Flow

First Quarter in Summary: · The operating revenues amounted to SEK 58.1 m (SEK 63.9 m). · The earnings after tax amounted to SEK 4.2 m (SEK 4.7 m). · The earnings per share amounted to SEK 0.08 (SEK 0.09). · The operating earnings before depreciation and net financial items, EBITDA, amounted to SEK 12.9 m (SEK 12.9 m), making an operating margin of 23% (21%). · The underlying cash flow improved to SEK 9.5 m (SEK 8.2 m). · NeoNet entered into two new distribution agreements with leading industry players. · New functionality was launched to facilitate and improve the efficiency of clients’ trading. · From 1 January 2005 NeoNet is following the International Financial Reporting Standards (IFRS) in accordance with an EU decree. The effects of the transition have been accounted for by an adjustment of the opening shareholders’ equity for 2004. The comparative figures for 2004 have been re-calculated, see the “Accounting principles” section. NeoNet’s First Quarter 2005 At the end of the period NeoNet’s operating earnings before depreciation and net financial items, EBITDA, was at the same level as the corresponding period last year and the cash flow was improved despite the decrease in revenues. Cash flow and operating earnings have shown a positive trend the latest four quarters. The earnings after tax were somewhat lower due to a net financial expense of SEK -2.8 m (SEK -1.6 m), partly as a result of the debenture loan raised in 2004. Action has been taken to improve the net financial income and the effects of this are expected in 2005. The same period last year started with high trading volumes; this was not the case this year. Lower transaction-related and other expenses are the reasons NeoNet has been able to maintain the operating earnings, operating margin and cash flow – or even improve these values – despite lower trading volumes. Investments have focused on enhancing the new platform that was launched last year. Investments, amounting to SEK 3.8 m (SEK 4.9 m) have also been kept at a lower level compared to the same period last year. NeoNet’s expanded offering with an increasing number of exchanges on which the clients can trade, has resulted in a more even distribution of revenues. A growing share, corresponding to just under a half of all revenues during the period, was generated on the European exchanges excluding Stockholm and Helsinki. These two exchanges and the U.S. ones will continue to form the foundation of NeoNet’s business. The inflow of new customers continued at a good pace and NeoNet has successfully achieved its aim of increasing trading from clients outside the Swedish market, where we already hold a strong position. Half of the revenues come from clients outside the Nordic market. This is partly the result of the new sales organization that was established during 2004. NeoNet has entered into new third-party agreements with RoyalBlue, Charles River and Tradeware. During the year, a first step of proprietary functionality for algorithmic trading was launched. For further information, please contact: Simon Nathanson CEO of NeoNet +46 8 454 15 51 simon.nathanson@neonet.biz