Year-end Report January–December 2005

Organic growth, investments in Products, results in line with previous year

2005 2004 Jan-Dec Jan-Dec Change 2005 2004 Key figures Oct-Dec Oct-Dec Change Net sales, 3,035 2,728 11% 832 783 6% SEK M Operating earnings 102 109 -7% 41 49 -16% (EBIT), SEK M Earnings for the 47 42 13% 2 6 -72% period, SEK M Earnings per share, 0.75 0.67 12% 0.03 0.10 -72% SEK · Net sales increased 11% to SEK 3,035 million (2,728). Organic growth for the full year 2005 was 11% · Operating margin of consulting activities was 7% (5) for the period January–December and 7% (6) for the forth quarter; operating earnings (EBIT) were SEK 205 million (130) for the period January–December and SEK 56 million (48) for the forth quarter · Continued investment in Products as well as delayed sales and the financial difficulties of an Obigo customer adversely affected earnings, resulting in operating earnings (EBIT) of –SEK 75 million (14) for the period January–December and –SEK 10 million (15) for the forth quarter · In October Obigo launched a new version of its world-leading software suite for mobile phones. The new software is expected to strengthen Obigo’s position during 2006 · Cash flow from current operations was SEK 203 million (75) The board of directors’ forecast for 2006 Obigo’s new product release has been positively received and is expected to lead to an increased order intake in the next quarters, later followed by a positive effect on profits. The product development investments are expected to decrease. The continuing efficiency drive in the consulting business is also expected have a positive effect. Forecast for the Teleca group: increased net sales and operating profits. For more information please contact: · Dag Sundström, President and CEO, Teleca AB, +46-857911601, mobile +46-705116458 · Christian Luiga, CFO, Teleca AB, +46-857911604, mobile +46-703751604 · Johannes Rudbeck, Investor Relations Manager, Teleca AB, +46-857911616,mobile +46-705825656