Financial difficulties for a customer affect Teleca’s Products Division with lower earnings for 2005

One of the customers of the Products Division and Obigo has at short notice entered into financial difficulties. Teleca’s outstanding receivables from the client amount to SEK 2.6 million, with continuing unbilled royalty revenues and projected royalties for the rest of the year amounting to about SEK 20 million. Consequently Teleca has decided to change the 2005 forecast for the Products Division. This change does not impact Teleca’s view on Obigo’s long-term development. Previous forecast for the Products Division: Significantly increased sales and operating earnings (EBIT). New forecast for the Teleca Products Division: Significantly increased sales compared with last year. Operating earnings (EBIT) lower than last year (SEK 14 million). The forecast for the Teleca group remains unchanged: Continued increased sales and significantly higher operating earnings, EBIT (SEK 111 million). Board of Directors For more information please contact: - Dag Sundström, CEO, Teleca AB, mobile: +46-705116458 - Christian Luiga, CFO, Teleca AB, mobile: +46-703751604 - Johannes Rudbeck, Investor Relations Manager, Teleca AB, mobile: +46-705825656