Year-end Report 2005

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

FULL YEAR 2005 COMPARED WITH FULL YEAR 2004
• Sales SEK 207.7 million (51.6), a 302 % increase compared with 2004.
• Net result SEK -91.2 million (-69.2).
• Loss per share SEK -24.81 (-121.92).
• Belgacom supply agreement (via Siemens Belgium) in April 2005, considerable sales during the year.
• 169,901 (39,137) units of customer placed equipment (CPE) shipped in 2005.
• Gross margin 14 % (17 %), positive trend in the fourth quarter.
• Operating result SEK -86.8 million (-67.9).
• Cash flow from operating activities SEK -128.4 million (-85.5).
• Cash and bank SEK 70.6 million (12.9) as of 31 December 2005.
FOURTH QUARTER 2005 COMPARED WITH FOURTH QUARTER 2004
• Sales SEK 72.7 million (13.7), a 430 % increase compared with the fourth quarter 2004.
• Net result SEK -34.1 million (-27.1).
• Loss per share SEK -4.11 (-30.72).
• New customers include Qtel (IP-TV and IP Residential Gateway) and T2 (IP Residential Gateway).
• 53,941 (11,034) units of customer placed equipment (CPE) shipped in the fourth quarter.
• Gross margin 19 % (-4 %), transition to new product lines near completion.
• Operating result SEK –33.6 million (-27.2).
• Period result was negatively affected by costs regarding write-down on a cancelled IP-TV
development project, a new personnel option scheme and financing activities.
• Cash flow from operating activities SEK 2.4 million (-27.8).

OTHER ISSUES
• Change of company name to Tilgin AB (publ) as part of a new brand name strategy.
• A number of new product lines were successfully introduced in both the IP Residential Gateway
(Vood 300 and 400) and IP-TV (Mood 300) product segments, customers shipments started in 2005.
• A directed SEK 72 million share issue (prior to underwriting expenses) was concluded in December.
• In November 2005 and January 2006 respectively, SEK 47.1 million and SEK 1.2 million of the 2005
convertible bond issue (SEK 50 million in total) was converted into new shares.
• Sven-Christer Nilsson, former CEO of Ericsson, joined Tilgin’s Board of Directors in connection with
the June 2005 annual general meeting.
• A March 2006 extraordinary general meeting decided on a SEK 109.1 million share-capital reduction for covering of losses.

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