INTERIM REPORT JANUARY-MARCH 2007

Summary for the first quarter of 2007

* Net turnover for the first quarter amounted to KSEK 6,343 (4,832).

* Profit/loss after tax in the first quarter amounted to KSEK -12,567 (-13,412). Excluding structural costs relating to the Xponse agreement, profit/loss after tax for the first quarter amounted to approximately MSEK -9.0.

* Profit/loss per share for the first quarter amounted to SEK -1.3 (-0.7).

* Transaction volumes for the first quarter amounted to KSEK 96,598 (88,906).

* In February Paynova terminated the company’s agreement with the Indian IT supplier Xponse, which greatly affected the company’s status and development during the first quarter in terms of transaction volumes, income and costs, as well as delivery times. The termination of this agreement has in general had an enormous impact on the profit and loss statement and balance sheet for the quarter.

* The financing that was previously obtained through the structural agreement with Xponse was replaced by a new share issue with preferential rights for existing shareholders. On the terms proposed, the share issue will, if fully subscribed, bring the company approximately MSEK 19 through subscriptions to shares. The share issue is fully guaranteed, MSEK 9.5 through subscription obligations and MSEK 10.2 through a guarantee consortium. The company will gain approximately MSEK 19 more through subscription to shares via subscription options.

* Paynova has signed an agreement with China’s top singer, Wei Wei, who is investing in mobile music downloading with the support of a Paynova payment

service.

* A partnership with the Chinese company CRD (Beijing Cyber Recreation Development Corporation)

is developing in stages in accordance with the agreement signed in December 2006.

* Paynova’s partnership with CD Wow has been expanded to encompass the provision of a complete

solution for payment via card, Internet bank or Paynova Wallet.

* The partnership with STRATO, one of Europe’s largest web-hosting companies, has been further developed to cover the United Kingdom, Spain, the Netherlands, France and Italy, in addition to Germany.

Significant events after the end of the interim period

* An extraordinary general meeting on 19 April 2007 decided to implement the preferential rights issue in accordance with the board’s proposal. The subscription

period for the issue is 7-21 May.

* Paynova and Lycos Europe have begun a collaboration

that involves Paynova’s payment services being included in Lycos’ online shopping platforms on six European markets. In addition to Sweden, this covers

Germany, France, the Netherlands, Spain and the United Kingdom.

Financial reports

* The interim report for the period 1 April-30 June 2007 will be published on 24 August 2007

* The interim report for the period 1 July-30 September

2007 will be published on 22 November 2007

* The year-end report for 2007 will be published on 14 February 2008

For further information, please contact

Per Sunnemark, CEO and Group PresidentTelephone:

+46 (0)70-147 67 55

(For complete report see attached file)