Interim report January 1 – June 30, 2006

Pointsec sales doubled – Sales exceeded SEK 100 M in the second quarter

SECOND QUARTER 2006 • Net sales increased by 73% to SEK 117.2 M (67.7) • Sales of Pointsec solutions doubled to SEK 102.8 M (51.0) • Profit after financial items amounted to SEK 14.6 M (11.0) A one-time provision of SEK 9.2 M for doubtful trade receivables relating to sales to partners was charged against earnings for the quarter. • Profit after tax amounted to SEK 11.7 M (6.3) • Earnings per share increased by 76% to SEK 0.51 (0.29) SIX-MONTH PERIOD JANUARY – JUNE 2006 • Net sales increased by 58% to SEK 207.3 M (131.4) • Profit after financial items amounted to SEK 32.0 M (24.5) A one-time provision of SEK 9.2 M for doubtful trade receivables relating to sales to partners was charged against earnings for the period. • Profit after tax amounted to SEK 22.9 M (15.1) • Earnings per share increased to SEK 1.01 (0.70) CEO Thomas Bill’s comments: “I am very pleased to note that we doubled sales and exceeded the 100-million mark for sales of Pointsec solutions during the second quarter. Sales of Pointsec solutions amounted to SEK 102.8 M in the second quarter, compared with SEK 51.0 M in the same quarter last year. “Our assessment is that we continue to take market shares. It is also interesting to note that new customers are making inquiries and want to replace competitors’ solutions that do not function satisfactorily. Demand for our solutions has also been strengthened by a number of incidents around the world in which large companies and organizations have lost portable PCs with sensitive personal data. We note that boards of directors and corporate management groups are being forced to increase awareness of security, resulting in a substantial increase in the number of inquiries regarding Pointsec solutions. “The increased focus on solutions for smart phones within the framework of our new business area Pointsec Wireless Solutions has attracted considerable attention among mobile phone manufacturers, operators and systems integrators. We expect to be able to present several attractive partnerships over the coming quarters. “The US and the Asia Pacific region showed the strongest growth during the quarter. In the US, Pointsec received its first orders at the state level, as well as orders from several universities. In Japan, sales successes continued, and Australia reported its largest order to date. Growth in Europe amounted to slightly more than 50%. “Despite continued substantial investment in the marketing and sales organization, the operating margin was 13%, which was in line with the corresponding quarter in the preceding year. However, second-quarter earnings were charged with a provision relating to overdue trade receivables. If this provision is eliminated from second-quarter earnings, the margin amounts to 21%. “Our assessment is that the market for Pointsec products will continue to grow and that the company will further strengthen its position. Sales and profit for 2006 are expected to increase, compared with 2005.”