Orc Software AB – Interim report January 1 – March 31, 2005

- Revenue for January-March 2005 increased by 2 percent compared to the equivalent period in the previous year and amounted to SEK 66 (65) million. - Operating income for January-March 2005 decreased by 43 percent to SEK 8 (14) million, giving an operating margin of 11.7 (21.2) percent. - According to the accounting principles applicable prior to the adoption of IFRS, revenue for January to March 2005 would have amounted to SEK 62 million and operating income to SEK 5 million. - Income after taxes amounted to SEK 6 (10) million. - Earnings per share amounted to SEK 0.40 (0.69). Future outlook Orc Software is seeing a continuation of significant business activity overall. The interest for Orc Software’s products continues to grow, especially within the area for automated trading and thus for the product Orc Liquidator. The fact that the revenue model for Orc Liquidator is getting more similar to the traditional revenue model means that new sales of Orc Liquidator will not have the same initial effect as in previous quarters. On a positive note the recurring license revenues continues to increase, now also expressed in Swedish kronor, as the US dollar has stabilized. Despite a reduction in expenses for the first quarter in comparison to the previous quarter, the result is still not satisfactory. Therefore, in order to increase profitability, work has begun to make the organization more efficient. An increased focus on the core business will lead to a better product and service offering, as well as strengthen competitiveness. For further information please contact: Jonas Lindström, CEO, tel: +46 8 407 38 35 Lars Johansson, EVP and COO, tel: +46 8 407 38 24 Susanne Holmlund, Investor Relations, tel: +46 8 407 38 50 www.orcsoftware.com