Interim report july 1, 1999 - march 31, 2000

INTERIM REPORT JULY 1, 1999 - MARCH 31, 2000 for AB Novestra (company reg. No. 556539-7709) Result and Financial Position - the Group Novestra reports a profit for the nine months ending March 31, 2000 of 105,685 KSEK (2,567 for the fiscal year 98/99). The result includes inter alia profits from sales of securities totalling 109,863 KSEK (6,280) and from other operations 5,161 KSEK (1,126). Profit per share, prior to full conversion of outstanding options, amounts to 32.5 SEK (1.0). Profit per share, after full conversion of outstanding options, amounts to 28.0 SEK (0.9). Book value on financial assets amounts to 422,256 KSEK (58,448) of which interest-bearing investments constitute 200,000 (0). Equity, prior to full conversion of outstanding options, amounts to 679,308 KSEK (51,117) which corresponds to a value of 146 SEK per share (19). Equity, after full conversion of outstanding options, amounts to 905,808 KSEK (58,317) which corresponds to a value of 175 SEK per share (19). Solidity was 96.9 % (82.1). The Group's cash and cash equivalents, including interest-bearing investments shown under financial assets, amounts to 463,629 (640). The total number of shareholders as per March 31, 2000 was approx. 2,500 (1,290 as per December 31, 1999). Comparative figures from previous years are unavailable due to a change in periodicity. For this reason, comparative figures from June 30, 1999 are used. Tax costs for AB Novestra for the period July 1, 1999 - March 31, 2000 totalling 385 KSEK, is calculated in accordance with the rules and regulations in the Swedish Taxation Regulation (2§ 10 mom. SIL [investment companies]). AB Novestra has applied for an advance ruling concerning investment company taxation status. Significant events during the period During the period, Novestra has made several new investments in companies such as DCM Holding AB, Qbranch AB and Dallas Sthlm AB, which are all profitable companies. Novestra has also made an investment in Recollections, Inc. and participated in a new share issue for the shareholders in B2 Bredbandsbolaget AB. Furthermore, Novestra concluded a directed new share issue adding 500 MSEK to the company prior to issuing costs. The issue was primarily subscribed for by international institutions. Alfred Berg Fondkommission AB acted as the company's advisor in this transaction. During the period, Mr. Peter Ekelund has joined Novestra's Executive Management. In view of his extended engagement, Mr. Ekelund and Novestra have signed a letter of intent giving Mr. Ekelund the possibility further on, subject to certain conditions, to extend his ownership in Novestra, partly through an issue in kind, where he transfers part of his holdings in B2 Bredbandsbolaget. As a step towards securing Novestra's long-term business strategy, the company has founded a subsidiary, AB Evestra, which will focus on resource and capital investments in start-up projects. Significant developments after the end of the period After the end of the period, Novestra has subscribed for shares in, and entered into a strategic cooperation with, Continuum Group Ltd. - a European investment company. A cooperation has also been entered into with Run Media, Inc., New York - a consulting firm within the area of business development. Moreover, Novestra has exercised an option to subscribe for new shares in Netsurvey AB. In connection with the reconstruction of NetTime AB, Novestra has sold its entire holding therein. The sale does not affect Novestra's result. On April 26, 2000, Novestra decided not to conclude the planned acquisition of TIME Vision BV. Future Developments Since its founding in 1997, Novestra has had a positive development of its results and this development has continued during the first nine months of the current fiscal year. It is important to note that the company's results, as well as the holdings in its portfolio at the end of the period, derive from capitalisation during 1997 and 1998 of approx. 55 MSEK. Over the past six-month period, Novestra has been restrictive as regards investments in companies where, in Novestra's judgement, the risk has been too high. The risk profile in most of the portfolio companies is currently deemed relatively low. Novestra believes that the changes in the market situation on the global stock markets will reduce the supply of venture capital and that Novestra, with its relatively large liquidity, will be given the opportunity to make several interesting transactions in the upcoming year. We can conclude that today Novestra has passed a difficult phase in the building up of the company and we have created favourable conditions for the company's continued operations. Other information The number of outstanding shares as per March 31, 2000 is 4,648,196. Profit per share has been calculated on the basis of an average number of 3,252,486 shares. The number of outstanding shares as per June 30, 1999 was 2,718,195. There are two series of debenture loans with detachable warrants issued. The first series comprises a total of 30,000 warrants with a right to subscribe for an equal number of shares and with two different strike periods (15,000 warrants expire September 30, 2000 and 15,000 warrants expire September 30, 2001) at a strike price of 50 SEK per share. The other series comprises a total of 500,000 warrants with a right to subscribe for an equal number of shares at a strike price of 450 SEK per share and the strike period expires June 30, 2001. This report has not been subject to an audit by the company's auditors. Stockholm in May 2000 Theodor Dalenson CEO ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/05/03/20000503BIT01190/bit0001.doc The full report http://www.bit.se/bitonline/2000/05/03/20000503BIT01190/bit0002.pdf The full report