Interim Report January–March 2008

Teleca stays focused on strategy implementation despite weak first quarter

Key figures, SEK
million 2008 Q1 2007 Q1 %
Operating income 296 318 -7
Operating -10 -542*** 98
earnings (EBIT)*
Net earnings for -25 -638 96
the period from
continuing operations **
Net earnings for - 384 -
the period from
discontinuing operations
Net earnings for -25 -254 90
the period*
Earnings per -0.40 -4.06 90
share, SEK*
Cash flow from -13 -53 75
operating
activities
Cash flow after -22 -43 49
investments

* EBIT result includes restructuring charges of SEK 16 million. Operating earnings excluding restructuring was SEK 6 million (-40) and operating margin was 2% (-13%). These restructuring charges are related to redundancies in management, sales and administration and staff in Teleca’s operation in Taiwan.
** Financial net includes SEK -6 million in currency losses from non realized inter-company financial assets and debts. The currency effects mainly relate to the weakening USD. Q1 2007 EBIT includes write-down of goodwill of SEK 357 million, capitalized development of SEK 104 million and provisions for restructuring of SEK 41 million.

First quarter highlights

- Service revenues totaled SEK 271 million (275). Adjusted for negative currency effects of SEK 8 Million, services revenues grew slightly at 2%. In addition the average number of working days was 1.3 less compared to last year which corresponds to a theoretic value of SEK 5 million.

- A sudden change in market conditions led to work cancellations from several customers and a sharp drop in utilization at Teleca in the quarter. These cancellations impact also second quarter, why Teleca has initiated strong actions to redirect resources to alternative projects, customers or prospects.

- Teleca has secured one new significant off-shore contract in Europe and two new significant combined on-shore / off-shore contracts in US in the quarter. The three contracts are all made with leading companies in the mobile industry.

Press and analyst conference

Teleca will present the earnings figures at 09.00 (CET) on 22 April 2008, at the World Trade Center in Stockholm (room Sydney). Call SWE +46 (0)8 505 59853, UK +44 (0)20 3043 2436 or US +1 866 458 40 87, or view live via the internet at www.teleca.com.


For more information contact

- René Svendsen-Tune, President and CEO, Teleca AB, mobile +45-40540068
- Christian Luiga, CFO, Teleca AB, mobile +46-703751604
- Mattias Stenberg, Investor Relations Manager, Teleca AB, mobile +46-706119616