Interim report 1 January – 30 June 2006

Tilgin AB (publ), Corp. ID no. 556537-5812

Second quarter 2006
• Sales SEK 101.0 million (29.3), a 245 % increase compared with the second quarter 2005.
• Net result SEK –22.2 million (-26.3).
• Loss per share SEK –1.83 (-16.61).
• New customers include Axione and Hitnet (IP Residential Gateway).
• 90,420 (31,932) units of customer premises equipment (CPE) shipped in the second quarter.
• Gross margin 18 % (6 %), negatively affected by provisions for warranty costs and effects
from currency exchange fluctuations.
• Operating result SEK –21.7 million (-23.8).
• Cash flow from operating activities SEK –25.9 million (-48.8).
• Cash and bank SEK 13.8 million (19.7) as of 30 June 2006.
First half of 2006
• Sales SEK 195.2 million (48.0), a 307 % increase compared with the first half of 2005.
• Net result SEK –33.6 million (-42.7).
• Loss per share SEK –2.78 (-26.94).
• 163,321 (49,178) CPE units shipped in the first half of 2006.
• Gross margin 19 % (11 %).
• Operating result SEK –32.5 million (-39.8).

Other issues
• US operations shifting focus towards indirect sales.
• The company was granted, and utilized, a SEK 15.0 million short-term loan from major
shareholders in July 2006. The loan will be repaid using proceeds from the new share issue.
• A preferential rights share issue totaling SEK 46.3 million before underwriting expenses
fully subscribed in August 2006.
• The Board continues to evaluate the possibility of listing the company at the Stockholm Stock Exchange.

For further information, please contact:

Jan Werne, CEO, Tilgin AB (publ)
Phone : +46 708 48 25 40
E-mail: jan.werne@tilgin.com

Mikael Sköld, CFO, Tilgin AB (publ)
Phone : +46 708 48 30 11
E-mail: mikael.skold@tilgin.com