YEAR-END REPORT 2010

(NGM:PAY)

(The figures in brackets refer to the same period of 2009 unless otherwise specified.)

2010 IN SUMMARY

• The transaction volume for 2010 was SEK 4,084,969 thousand (3,089,871), an increase of 32 per cent compared to 2009.

• Transaction-based revenue for 2010 was SEK 30,567 thousand (31,308), a decrease of 2 per cent compared to the previous year.

• Profit/loss before amortization/depreciation improved by SEK 19,908 thousand to SEK 7,423 thousand (-12,983).

• Profit/loss after tax improved by SEK 20,880 thousand to SEK 306 thousand (-20,574) compared to 2009. This figure includes a positive earnings effect of SEK 5,469 thousand attributable to the Swedish Tax Agency’s reassessment decision regarding Paynova’s VAT liability.

• Earnings per share were SEK 0.00, compared to SEK -0.28 in 2009.

OCTOBER-DECEMBER 2010 IN SUMMARY

• The transaction volume for the fourth quarter of 2010 was SEK 1,030,109 thousand (1,007,415), an increase of 2 per cent compared to the fourth quarter of 2009.

• Transaction-based revenue for the fourth quarter was SEK 7,914 thousand (9,263), a decrease of 15 per cent compared to the same quarter of last year.

• Profit/loss before amortization/depreciation improved by SEK 6,039 thousand to SEK 5,541 thousand (-498).

• Profit/loss after tax improved by SEK 6,423 thousand to SEK 3,484 thousand (-2,939) compared to the fourth quarter of 2009. This figure includes a positive earnings effect of SEK 5,469 thousand attributable to the Swedish Tax Agency’s reassessment decision regarding Paynova’s VAT liability.

• Earnings per share were SEK 0.04, compared to SEK -0.04 in the same period of last year.

SIGNIFICANT EVENTS IN 2010

• The administrative court of appeal dismissed Paynova’s appeal and upheld the county administrative court’s decision regarding liability for value added tax. Paynova has thereafter requested reassessment of VAT for the period from February 2006 to September 2010. In its reassessment decision in February 2011, the Swedish Tax Agency notified the company that it has approved the submitted material and closed the case. The amount to be paid is SEK 7,274 thousand including interest. Paynova has made continuous provisions for a negative outcome in the tax dispute. The total provision amounted to SEK 12,744 thousand, which means that the positive earnings effect is SEK 5,469 thousand. The outstanding liability will be financed through the directed share issue that the Board’s intends to decide on.

• A number of new strategically important collaborations have been established. New partners include Payzone Nordic, Litium and Trippus.

• The wind-up of Paynova’s consumer e-account service was started and an annual account maintenance fee was introduced.

• Paynova has signed a collaboration agreement med Moneybookers, one of the world’s leading e-Wallet providers with operations in more than 200 countries. E-merchants that are connected to Paynova will thus gain access to Moneybookers’ payment method and all of its account holders around the world.

SIGNIFICANT EVENTS AFTER THE END OF THE YEAR

• The Board of Paynova intends to decide on a directed share issue in the near future. The issue will be carried out in accordance with an authorization granted by the 2010 AGM to cover the company’s capital needs in 2011 above and beyond the cash flow generated by operating activities. In view of the reduced capital requirement for payment of VAT, the company is focusing on a financing solution with a smaller issue of shares than previously indicated.

• Paynova has created new scope for volume and earnings growth through an agreement with Medborgarskolan. The agreement is an example of the attractive new transaction and revenue channels for major customers established by Paynova during 2010. Medborgarskolan is one of Sweden’s largest providers of adult education, with close to one million participants annually and extensive transaction volumes. Paynova has also signed an agreement with the study circle organisation Studieförbundet Vuxenskolan.

• Paynova has entered into a partnership with PayPal, one of the world’s largest electronic payment networks. Through the partnership, PayPal will be integrated into Paynova’s payment solution. E-merchants that are connected to Paynova will thus gain access to the more than 220 million PayPal account holders around the world.

(For full report, including tables, see attached file)