Q-FREE - SECOND QUARTER AND FIRST HALF 2019 RESULTS

The second quarter of 2019 represented a significant rebound from Q1-19. Revenues were up 12% and EBITDA was up 167% quarter on quarter. Order intake was solid despite the absence of major new contracts, and the order backlog remains at a very high level.

Highlights for Q2-19 include:

* 251 MNOK in revenues, up 11% YoY driven by the tolling and urban business areas

* 23 MNOK in EBITDA (9% margin), a significant increase from 9 MNOK in Q1-19, but down from 31 MNOK in Q2-18

* 209 MNOK in order intake including several high-margin ALPR/ANPR contracts

* 1 120 MNOK in order backlog, up 6% YoY

* 45 MNOK in net proceeds paid to increase shareholding in Intelight Inc. from 53% to 75%

* 55 MNOK MLFF tolling contract in Australia signed in early July after closing of Q2-19

Highlights for H1-19 include:

* 474 MNOK in revenues, up 10% from H1-18

* 31 MNOK in EBITDA (7% margin), down from 47 MNOK in H1-18 due to mix effects and lower than normal tolling project margins

* 507 MNOK in order intake, up 11% YoY

- We are pleased to see that we, as promised, delivered stronger results in the second quarter than in the first quarter of 2019. Based on the current order backlog and contract pipeline Q-Free believes that performance in the second half of 2019 will be better than in the first half. Moreover, with the expected signing of new contracts with attractive margins in the coming months, Q-Free will benefit from operational leverage and build a very strong foundation for 2020, comments President & CEO in Q-Free, Håkon Volldal.

The live broadcast, starting at 9 AM CET, can be followed on

https://www.q-free.com/investor_relations/web-cast/

A recorded version will be available after the webcast has been concluded.

Enclosures: Q2-19 report, Q2-19 presentation

For further information, please contact:

President & CEO, Håkon Volldal: +47 977 19 973

CFO, Tor Eirik Knutsen: +47 950 50 062

About Q-Free

Q-Free is a leading global supplier of ITS (Intelligent Transportation Systems) products and solutions. The company has approximately 390 employees, offices in 17 countries, and a presence on all continents. Headquartered in Trondheim, Norway, Q-Free is listed on the Oslo Stock Exchange under the ticker QFR.

www.q-free.com
Twitter: @QFreeASA