Year-end report for the period from january 1 to december 31, 2002

YEAR-END REPORT FOR THE PERIOD FROM JANUARY 1 TO DECEMBER 31, 2002 FOURTH QUARTER AND FULL YEAR 2002 · Sales amounted to SEK 55.6 M (69.8) during the fourth quarter and to SEK 203.7 M (224.9) for the full year. · Pointsec sales amounted to SEK 16.7 M (20.0) during the fourth quarter, and Pointsec operations accounted for a profit in the consolidated accounts for the second consecutive quarter. · The gross margin for the quarter amounted to 56% (60%), and the accumulated margin for the year was 59% (51%). Pointsec's share of sales amounted to 30% (29%) during the quarter, with accumulated sales amounting to 28% (19%). · The operating loss amounted to SEK 6.3 M (loss: 3.4) for the quarter, with an accumulated loss for the year of SEK 39.3 M (loss: 70.7). Costs of SEK 6.9 M (4.1) for the discontinuation of operations were charged against earnings for the quarter, with total charges for the year amounting to SEK 11.6 M (13.0). · A profit of SEK 0.5 M (loss: 2.7) after net financial items was reported for the fourth quarter, while a loss of SEK 29.8 M (loss: 62.5) was reported for the full year. An realized gain in value of SEK 5.2 M in the Nektar fund contributed positively to net financial items during the fourth quarter. · Cash flow was positive during the quarter and liquidity at the end of the period amounted to SEK 141 M (150), including unutilized overdraft facilities and unrealized surplus values in fund assets. Shareholders' equity amounted to SEK 133 M (163), corresponding to an equity/asset ratio of 65% (63%). SIGNIFICANT EVENTS DURING THE QUARTER · Pointsec orders were received from Key Bank in the US with an order value of SEK 3.4 M. · Significant Pointsec deliveries were made in Europe to such customers as Vattenfall, Nokia and AstraZeneca. · Interest in Protect Data Solutions' offering increased and resulted in assignments from such customers as AeroTech Telub and com hem. · During the quarter, a contract was signed with one of Great Britain's largest banks regarding a delivery of Pointsec during the first quarter of 2003. The order value amounts to some SEK 5 M. · Major deliveries of security solutions for Internet banks were made in both Sweden and Norway. · One of Protect Data Solutions' major customers decided to sign a contract directly with Protect Data's foreign supplier. This decision will result in a reduction of estimated sales for the business area during 2003, and a cost-savings program was therefore implemented in December that will result in additional personnel reductions. EVENTS AFTER THE CLOSING DATE · Pointsec started operations in Germany during the first quarter of 2003 through the wholly owned subsidiary Pointsec Mobile Technologies GmbH. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net