Preliminary 2nd quarter 2008 results for TeleComputing ASA

During the final preparation of the second quarter 2008 results, and the internal distribution of these figures, some of the financial information has accidentally been made available to an external non-insider. The matter has been discussed with the Oslo Stock Exchange who recommended that TeleComputing should make the same information available to the market at large. TeleComputing has therefore decided to report preliminary key figures for its Q2-2008 financial results.

The company will formally report its financial results for the second quarter 2008 at the investor presentation at Felix Konferansesenter on August 14, 2008 at 8:00 am, as outlined in the company’s financial calendar.

TeleComputing’s revenues during the second quarter 2008 was MNOK 229,0 (MNOK 185,5). This represents a total growth rate of 23,4 % and an organic growth rate of 19,8 % from the second quarter 2007.

The operating income before amortization costs (EBITA) during the second quarter 2008 was MNOK 16,5 (MNOK 12,9), representing an EBITA margin of 7,2 %. Operating income (EBIT) in the second quarter 2008 was MNOK 14,7 (MNOK 11,3).

Order inflow in the IT Operations segment during Q2 2008 was MNOK 206, the second highest quarterly sales figure in company history. This compares with an order inflow of MNOK 126 in Q2 2007.

Business segments:
Norway IT Operations: Revenues MNOK 107,6, EBITA MNOK 8,8
Sweden IT Operations: Revenues MNOK 64,0, EBITA MNOK 0,8
IT Solutions: Revenues MNOK 57,4, EBITA MNOK 6,9

TeleComputing had a cash balance of MNOK 70,1 at the end of Q2, an increase of MNOK 1,6 from the end of the prior quarter.

Cash flow from operations was a net inflow of MNOK 20,8. Cash flow from investments was a net outflow of MNOK 19,8, which includes MNOK 5,6 in earnout payments related to the acquisition of StoneBrix AB.

TeleComputing’s equity balance was MNOK 338 at the end of the second quarter 2008, representing an equity ratio of 46 %. Total interest bearing debt consists of a MNOK 200 bank loan at the end of second quarter 2008, where MNOK 25 is classified as short-term debt which is scheduled to be repaid during 2008.

TeleComputing continues its positive development with strong organic growth and profitability within targeted margin levels in the growth phase. The company has a strong order inflow and a healthy balance sheet.

The market outlook for TeleComputing remains very good. The general market growth is estimated at 6 – 8 %. The company expects organic growth above market growth for the foreseeable future.

TeleComputing’s long term growth and profit targets remain unchanged and the “Best in Class 2008” goals are still valid and feasible.