Telelogic Interim Report, April - June 2007

- Revenue climbed 8% in local currency during the second quarter to SEK 397.6 million.

- Sales of licenses and maintenance rose 7% in local currency. Sales of services increased 11% in local currency.

- Pre-tax profit increased 41% to SEK 47.5 million for the quarter.

- Earnings per share increased 27% for the second quarter and amounted to SEK 0.14/share.

- Cash flow from operating activities was SEK 168.5 million during the first six months of the year.

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CEO´s comments on the quarter:

“Telelogic continued to make good progress during the second quarter of 2007. The offer, which was made public on June 11, has however affected on-going deals. It was mainly noticeable in the US where Telelogic’s position, relative to Asia and Europe, is not as strong. Though operations in Asia and Europe were also affected by the offer situation. Despite that, Telelogic closed the quarter with 8% in organic growth and a 27% increase in earnings per share.

On the product side, all product families showed good progress. Particularly gratifying is that the three last acquired products, System Architect, Focal Point and Rhapsody, continued to demonstrate extremely strong growth, and that the product category for configuration
management experienced a strong quarter.

Telelogic expects the uncertain situation to continue
into the third quarter until such time that the uncertainty created by the offer situation is eliminated. Nevertheless, Telelogic expects to achieve the figures announced in the first quarter report in the forecast for 2007.”

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Key numbers April - June 2007

Revenue: 397.6 SEK million (382.4 SEK million)
Pre-tax profit: 47.5 SEK million (33.8 SEK million)
Income after tax: 35.3 SEK million (26.5 SEK million)
Earnings per share: 0.14 SEK (0.11 SEK)
Cash flow, current operations: 60.0 SEK million (74.7 SEK million)

Key numbers for corresponding period from previous year in parenthesis.