Report for the third quarter 2008

During the third quarter 2008 Q-Free generated revenues of NOK 120.5 million, compared to NOK 108.4 million in the corresponding quarter 2007. Operating profit (EBIT) in the third quarter 2008 totaled NOK 11.1 million, compared to NOK 5.3 million in the third quarter 2007 and NOK 11.3 million in the second quarter 2008.

“- The market activity has been high and during the quarter we have received new important contracts. Through the acquisition of Dacolian we have taken further measures in becoming a technology neutral solution provider”, says CEO of Q-Free, Øyvind Isaksen.

Order intake during the quarter reached NOK 127.6 million. In addition to a service and maintenance contract for the Swedish Public Roads Administration (NOK 38 million) and an On Board Unit (OBU) order in Brazil (NOK 26 million), the order intake during Q3-08 is constituted by smaller product- and project change orders from Norway, Brazil and Australia.

Highlights:

-Operating revenues of NOK 120.5 million compared to NOK 108.4 million in the corresponding quarter 2007 and NOK 136.0 million in the second quarter 2008.

-Operating profit (EBIT) of NOK 11.1 million compared to NOK 5.3 million in the third quarter 2007 and NOK 11.3 million in the second quarter 2008.

-Gross margin of 61.2% compared to 55.0% in the third quarter 2007 and 49.4% in the second quarter 2008.

-Profit before tax amounted to NOK 7.9 million, compared to NOK 3.9 million in the third quarter 2007 and NOK 13.3 million in the second quarter 2008.

-Order intake amounting to NOK 127,6 million compared to NOK 199.3 million in Q3-07 and NOK 199.7 million in Q2-08. Order backlog of NOK 379,8 million, compared to NOK 365.8 million per Q3-07 and NOK 373.9 million per Q2-08.


Enclosed please find the Q3-08 report and presentation.

Trondheim 22 oktober 2008.