INTERIM REPORT JANUARY-JUNE 2004

Summary for the period

* Net turnover has increased to SEK 431,000 (130,000), compared with the same period in 2003. The gross transaction volume rose to SEK 7,017,000 (1,460,000). The gross transaction margin during the period came to 4.8 per cent (4.8).

* Profit/loss after tax amounted to SEK –16,619,000 (-12,241,000). Profit/loss per share for the period came to SEK –1.6 (-2.5).

* As of 30 June the number of wallets opened was 117,720, an increase of 111 per cent compared with the start of the year (31 Dec. 2003: 55 700). As of 30 June the number of agreements signed with e-retailers totalled 656 (31 Dec: 475).

* Four new payment services or forms of access have been introduced during the first half of the year: Major Client Services, Partner Network Services, Mobile Services and Payment Services. Income from these services has not yet affected the profit/loss for the period.

* During the first half of the year agreements have been signed with CD WOW, TV-shop Europe, Mindark PE, TV4 Interactive, AdLibris, Fujifilm Sverige, SJ, Swebus Express and Ryanair (Letter of Intent), among others.

* Strategic partnership agreements were signed with Studentkort i Sverige AB, GZS/easycash (Germany), Paybox (France) and WM-data.

* Paynova was listed on NGM, the Nordic stock exchange, on 26 February 2004.

* Activities have been financed primarily through new share issues. Two targeted issues have brought Paynova approximately MSEK 14 and increased the number of shares by 1.3 million. In addition to this, a little over 1.2 million shares were subscribed for in connection with the maturing of subscription options (TO5), bringing the company almost MSEK 9.

* Following the end of the reporting period, a further strategic partnership agreement was signed with Triple Deal (a payment-processing firm in the Benelux countries). In addition, the commercial launch and marketing via our partners in Germany and France has begun.

The entire Interim Report is enclosed. This is also available at www.paynova.com

Developments at Paynova and on the company’s markets during the past six months, resulting among other things in four new service areas and an upgrade of the European campaign, have caused the Board to submit supplementary information. This is partly in a comprehensive company update, to be distributed separately, and partly in a company update to be presented in its entirety at an information meeting. Information concerning date and venue will be forthcoming at a later point, and will also be published on the website: www.paynova.com.

For further information, please contact:

Mats Jonnerhag, Information Manager, Paynova AB

Cell: +46 (0)708 – 78 17 17, e-mail: mats.jonnerhag@paynova.com

Pelle Hjortblad, CEO Paynova AB

Tel: + 46 (0)70 – 181 01 10, e-mail: pelle.hjortblad@paynova.com

www.paynova.com

About Paynova

Paynova (listed on NGM: PAY) offers businesses and consumers secure payment solutions for shopping via the Internet or mobile phone. An electronic wallet (e-account) is opened and topped up simply and easily, and can be used for making direct payments over the Internet. Over 100,000 Paynova Wallets have been opened by consumers, who then avoid having to supply their bank or credit card numbers to strangers over the Internet. Businesses find that managing payments through Paynova results in lower costs for administration and redemption, and that they can receive payments from all over the world. More than 20,000 banks accept the wallet via VISA and MasterCard. Paynova currently has nearly 600 online shops connected. Specially adapted payment solutions are available for: Traditional online shopping (e.g. mail order) including Micropayments (e.g. gaming), Mobile phone payments (e.g. Premium SMS), for special Industry needs (e.g. passenger transport and IT consultancy firms) and Partnership agreements (e.g. transaction management companies).

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