Interim Report 9 months to 30 September 2000

Interim Report 9 months to 30 September 2000 Highlights ¤ Net asset value amounted to USD 80.4m (SEK 774.6m), equivalent to USD 6.84 (SEK 65.91) per share, compared with USD 6.61 (SEK 58.08) per share as at 30 June 2000. *Profit after tax amounted to USD 3.4m (SEK 32.8m) for the 9 months, compared with USD 2.7m (SEK 22.0m) for the same period last year. ¤ Strong revenue growth for Medicover, continued margin improvements in the key Polish market. ¤ Revaluation of United Entertainment Co. reflecting strong development and new round of financing. ¤ Our successful exit from Brewery Holdings Romania is pending authority approval before becoming final and being reflected in our accounts. I am pleased to report a positive result for the third quarter of USD 2.7m (SEK 25.6m) and for the 9 months of USD 3.4m (SEK 32.8m). Profits in the third quarter were primarily derived from the revaluation of one of our unlisted investments, United Entertainment Company, following a new round of financing and a continued increase in the value of our remaining portfolio of Russian bonds. Operating expenses for the 9 months were in line with budget, amounting to USD 2,852,000 (2,176,000). The difference versus last year is explained by the costs associated with consultancy work in Poland. In line with our policy, we cover existing investments more extensively in our six and twelve month reports, while in the three and nine month reports we focus on new investments together with any major developments in existing holdings. Due to its relative size in our portfolio, we also cover the performance of Medicover in each quarter. New Investments During the quarter we made a commitment of SEK 14.5m for a 30% stake in Medinsite. The company targets the European hospital supply industry, focusing on rationalising the tender and procurement processes. Medinsite is starting multiple pilot tenders with Swedish county governments before the end of the year. Medicover Medicover continued its strong development during the quarter. Revenue for the group for the 9 months was USD 14.5m, a continued increase of more than 50% compared with the previous year. Members in all programs increased to around 65,000. The EBITDA profit1 for the 9 months was USD 438,000, against an EBITDA loss of USD 2.0m for the same period in 1999, continuing the positive trend reported in the previous two quarters of the year. Both Poland and Romania continue to develop better than budget, while Hungary and Estonia are still trailing. Poland Medicover Poland grew its revenue to USD 11.1m (USD 7.4m), contributing an EBITDA profit of USD 1.3m (loss of USD 351,000). Revenue during the third quarter amounted to USD 3.95m with an EBITDA profit of USD 555,000, illustrating strong underlying earnings growth. A large new Health Center was opened in Warsaw at the end of the quarter, Medicover's 17th Health Center in Poland. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/11/16/20001116BIT00260/bit0001.doc The full release http://www.bit.se/bitonline/2000/11/16/20001116BIT00260/bit0002.pdf The full release