TeleComputing. Results 4.quarter 2007

- Total group revenue for 4th quarter 2007 was MNOK 221,1 (MNOK 130,2), representing a growth rate of 69,8 %

- Revenue excluding 2007 acquisitions and divestitures was MNOK 147,0 (MNOK 126,6), representing an organic growth rate of 16,1 %.

- Excluding the effect of SEK/NOK currency fluctuations, the organic growth rate was 18,7 %.

- Order inflow in the IT Operations segment during the 4th quarter was a record MNOK 222 (MNOK 204). New contracts were also record high, representing MNOK 126 (MNOK 114).

- Operating profit before amortization (EBITA) was MNOK 15,0 (MNOK 10,0), representing an EBITA margin of 6,8 %.

- During Q4, TeleComputing replaced the managing director of its Sweden IT Operations business segment. This resulted in settlement expenses with the previous managing director of MNOK 2,0. Net of this restructuring cost, EBITA in the fourth quarter was 17,0, representing an EBITA margin of 7,7 %.

- After amortization expenses of MNOK 1,8 (MNOK 0,5), operating profit (EBIT) was MNOK 13,2 (MNOK 9,5).

- During Q4, TeleComputing performed an annual revaluation of its deferred tax assets. Based on the profitability of its Norwegian IT Operations segment in 2007, TeleComputing estimates that all of its Norwegian tax-loss carryforwards will be used in future periods except those MNOK 203 of tax-loss carryforwards which are currently in dispute with the Akershus Likningskontor. This results in an increased capitalized value of TeleComputing’s deferred tax assets and a corresponding reduction in tax expense of MNOK 15,1. Adjusted for this revaluation, taxes generated a positive adjustment to earnings of MNOK 14,2.

- Net income after tax was MNOK 23,5 (MNOK 20,3).

- In October, TeleComputing entered an agreement to acquire 100 % of the share capital of StoneBrix AB for a purchase price of MSEK 10,6, plus additional consideration of an estimated MSEK 18, based on performance targets through 2008.


More details may be found in the attached information