Telelogic reiterates full year forecast

MALMÖ, Sweden – June 23, 2005 – Telelogic (Stockholm Exchange/TLOG) reiterated the company’s full year forecast for 2005 and the financial effects from the most recent acquisitions, during yesterday’s capital market event. Forecast for 2005 unchanged: The underlying demand in the market place is assessed to be good and is expected to develop favorably during 2005, with similar quarterly variations as during 2004. The company’s forecast for the organic growth is that it will exceed 10% in local currency during the year. Within the framework of this goal, Telelogic intends to strongly improve its market position in Asia and during the next two years, increase its operations there by at least 25% annually. Telelogic estimates that earnings per share and cash flow, including effects from acquisitions, will increase during 2005 compared to previous year. Financial effects of acquisitions: The acquisitions of Popkin Software and Focal Point will be reported in accordance with IFRS that were adopted in 2005. In connection to the acquisitions in April 2005, Telelogic estimated that the acquisitions will have a positive effect on cash flow for 2005, a neutral effect on pre-tax profit for 2005 and a positive effect on earnings per share for 2006. This estimate remains unchanged. The acquired units are profitable and will contribute positively from the day they are consolidated in the accounts. Telelogic’s profit will however be impacted by depreciations related to the acquisitions during a period of one year. These depreciations will be higher in the beginning of the period and decrease thereafter. For the second quarter 2005, Telelogic estimates depreciations related to acquisitions to amount to a few percentage of Telelogic’s revenue for the second quarter. Telelogic has previously communicated that the acquisitions will result in restructuring charges to achieve 20% operating margin in the acquired units. The restructuring charges for the second quarter are related to staff reductions in the range of 10-15 employees and some minor administrative costs.