TRANSCOM REPORTS REVENUES UP BY 20% TO EURO 132.2 MILLION, WITH EBITDA UP 45% TO EURO 14.1 MILLION AND NET INCOME MORE T

TRANSCOM REPORTS REVENUES UP BY 20% TO ?132.2 MILLION, WITH EBITDA UP 45% TO ?14.1 MILLION AND NET INCOME MORE THAN DOUBLING TO ?3.8 MILLION Luxembourg, 7 August 2003 - Transcom WorldWide S.A. ('Transcom') (Stockholmsbörsen: TWWA, TWWB), Europe's largest CRM operator by geographical footprint, today announced its financial results for the first six months and second quarter ended June 30, 2003. SIX MONTH HIGHLIGHTS · Net sales up 20% to ?132.2m (?110.6m) with Q2 sales up 28% · EBITDA up 45% to ?14.1m (?9.7m) · Pre-Tax Profit up 87% to ?5.8m (?3.1m) · Net income more than doubled to ?3.8m (?1.7m) · Consolidation of CIS from April 1 2003 · Commenced debt collection activities in France in Q2, 2003 · Transcom opened its first call centre in Poland CONSOLIDATED INCOME STATEMENT (M 2003 2002 2002 EUR) Jan 1-June 30 Jan 1-June 30 Full Year Net Sales 132.2 110.6 228.5 Earnings before depreciation and 14.1 9.7 19.0 amortization Operating income 6.5 3.4 5.6 Net financial items -0.7 -0.3 -0.6 Income after financial items and 5.8 3.1 5.0 before income tax and minority interest Net income 3.8 1.7 2.4 Earnings per share before 0.06 0.03 0.04 dilution Total weighted average 67,045,001 63,630,248 64,103,903 outstanding number of shares before dilution FIRST SIX MONTHS AND Q2 OPERATING REVIEW Transcom, Europe's largest CRM operation by geographical footprint, delivered a solid set of results for the first six months of 2003. Net sales for the first six months increased by 20% to ?132.2 million (?110.6 million). This was due to the continuing strong performance from Gestel, new business growth and the consolidation of CIS. Stripping out CIS, sales growth would still have risen by 16%. EBITDA rose by 45% to ?14.1 million (?9.7 million). Operating income almost doubled to ?6.5 million (?3.4 million) with profit before tax up 87% to ?5.8 million (?3.1 million) and net income more than doubling to ?3.8 million (?1.7 million). The most significant event for Transcom during the second quarter was the consolidation of CIS's debt collection business from April 1 2003. The acquisition of this business has enabled Transcom to expand its product offering in mainland Europe. As a result Transcom established an operational debt collection service in France during the last quarter and intends to provide this capability in at least two other countries before the end of 2003. CIS contributed ?4.2 million in sales and a pre-tax profit of ?0.8 million for the second quarter 2003 and is performing according to plan. Transcom paid SEK 180 million to Industriförvaltnings AB Kinnevik for CIS's debt collection business, of which 25% was paid in Transcom shares and 75% in cash. The number of shares issued was determined on the basis of the average transaction price for the Transcom A and B class shares between March 10, 2003 and March 21, 2003 inclusive. The price per share was calculated as 9.55 SEK per A share and 10.70 SEK per B share. As a result 2,270,647 Transcom A class shares and 2,179,002 Transcom B class shares have been issued to Industriförvaltnings AB Kinnevik. Transcom opened a new call centre in the city of Olsztyn in Northern Poland, in June 2003. The Polish CRM market is relatively immature and in a country of 39 million people, it offers Transcom an excellent opportunity to enter this market at an early stage in its development. This call centre, which is being funded from Transcom's existing cash flow is expected, in the longer term, to employ around 250 people. In June, Transcom announced an initial two-year contract with B2 Bredband AB for handling inbound calls relating to all customer care, including telephony and internet support in Sweden. B2 Bredband AB is a fast growing broadband provider in the Swedish business and residential market, offering voice, data and video communications. In addition, during the quarter Transcom signed a new contract with Durion, the largest supplier of green energy in the Netherlands, which will generate approximately one million Euros in annualized revenues. Transcom, in early July, announced the creation of two new senior positions. Jon Fitch has joined Transcom as Chief Technology Officer, with responsibility for technology and IT functions and Steve Britton has joined as Sales and Marketing Director, with his primary responsibility being to develop business with new clients. The rapid growth of Transcom to 34 centres across Europe and North Africa has made it necessary to create two new roles dedicated to giving an international focus to technology and sales development. The acquisition of CIS's debt collection business and the opening of a call centre in Poland increased the number of Transcom employees to more than 7,800 in 34 centres, servicing 18 countries. Transcom's geographical expansion will continue, with particular focus on the establishment of several new operations in Europe during the course of 2003. Transcom continues to focus on cost control and will seek to establish those operations in the most cost-efficient locations. Transcom continues to derive a significant proportion of its income from its principal client, Tele2, the leading pan- European telecommunications service provider. This relationship enables Transcom organically to develop the largest call centre network in Europe. The longer-term aim is to reduce the percentage of Tele2 business, which, at the end of the second quarter 2003 accounted for 73% of Transcom's net sales (including the impact of CIS) compared with 75% at the end of 2002 and 82% at the end of 2001. In the first six months of 2003, revenue from external clients more than tripled to ?26.6 million compared to ?8.2 million for the same period in 2002. The continued growth of new business contracts will enable the percentage of Transcom's CRM business that comes from Tele2 to fall in the longer term. The outlook for the CRM industry in 2003 is improving over 2002 as clients increasingly recognize that outsourcing is a necessary requirement in controlling and reducing their costs. As a result, Transcom continues to develop a growing prospect list. FINANCIAL REVIEW FOR FIRST SIX MONTHS OF 2003 Sales increased by 20% to ?132.2 million (?110.6 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 45% to ?14.1 million (?9.7 million). Operating income for the period was ?6.5 million (?3.4 million). Transcom reported a pre-tax profit of ?5.8 million (?3.1 million), with a ?3.8 million profit after tax, compared to ?1.7 million for the first six months of 2002. Transcom reported earnings per share (before dilution) of ?0.06 (?0.03). Cash flow from operations for the first six months of 2003 was ?13.2 million (?8.1 million). Capital expenditure almost halved to ?1.2 million (?2.1 million) as only one new call centre was opened in the first six months of 2003. The working capital movement was ?-7.6 million (?-5.1 million) which was the result of strong growth in the Southern European region, where debtor days are typically longer. The operating cash flow was ?7.2 million for the quarter compared to ?6.0 for the first quarter in 2003. Transcom spent ?11.8 million on business purchases in the first six months of 2003, nearly all of which were payments associated with the acquisition of CIS's debt collection business. Transcom had liquid funds of ?15.8 million (?18.5 million) as at June 30, 2003, after taking account of a substantial proportion of the money owed in respect of the CIS deal and the final payment for the Gestel acquisition. Long-term debt was ?18.0, reflecting a slight increase in the amount drawn from the Kinnevik convertible. The equity to assets ratio at March 31, 2003 was 54.2% (57.2%). OTHER INFORMATION Transcom deregistration and delisting from Nasdaq: On May 14, 2003 Transcom announced its deregistration and delisting from Nasdaq for the following reasons: · The total number of holders of series A and series B ADSs who were resident in the United States was less than 300 and, as of April 30, 2003, there were 1,200 series A ADSs and 3,641 series B ADSs outstanding, compared to 35.1 million series A shares and 34.2 million series B shares outstanding in total · The volume of trading in the ADSs on the NASDAQ National Market was very low with only 105,779 ADSs traded during the period from September 2001 to April 2003, compared to 66.6 million shares traded on the Stockholm Stock Exchange during the same period of time · US shareholders own 0.6% of the issued share capital of Transcom. Non-Swedish shareholders, including shareholders in the U.S., own 13% of the issued share capital of Transcom and have typically acquired shares on the Stockholm Stock Exchange · The Board of Directors does not believe that the deregistration and delisting will have an adverse effect on the ability of Transcom's principal U.S. shareholders to hold its shares These actions will not affect the continued listing of Transcom's series A and series B shares on the Stockholm Stock Exchange. The delisting of Transcom series A and series B shares and ADSs from the NASDAQ National Market was subsequently completed at the close of trading on May 28, 2003. For full details please see Transcom's press release dated May 14, 2003. Transcom's financial results for the first nine months and third quarter of 2003 will be announced on October 23, 2003. This report has not been subject to review by the Company`s auditors. The Board of Directors of Transcom WorldWide S.A. Luxembourg, August 7, 2003. For further information please contact: Keith Russell, President and CEO +352 27 755 000 Dwayne Taylor, Investor & Press enquiries +44 20 7321 5010 Transcom WorldWide is a rapidly expanding Customer Relationship Management (CRM) solution provider, with 34 centres employing more than 7,800 people delivering services to 18 countries - Luxembourg, Sweden, France, Denmark, Germany, Finland, Italy, Switzerland, Norway, the Netherlands, Spain, Austria, Morocco, Poland, Estonia, Latvia, Lithuania and the UK. The company provides CRM solutions for companies in a wide range of industry sectors, including telecommunications and e-commerce, travel & tourism, retail, financial services and utilities. Transcom offers clients a broad array of relationship management services, including inbound and outbound call handling, Interactive Voice Response, Internet Services, e-mail processing and fax broadcast. Client programs are tailor-made and range from single applications to complex programs, which are offered on a country-specific or international basis in up to 38 languages. Transcom WorldWide S.A.'A' and 'B' shares are listed on the Stockholmsbörsen O-List under the symbols TWWA and TWWB. This press release contains certain "forward-looking statements" with respect to our expectations and plans, strategy, management's objectives, future performance, costs, revenues, earnings and other trend information. It is important to note that our actual results in the future could differ materially from those anticipated in forward- looking statements depending on various important factors. All forward-looking statements in this press release are based on information available to us on the date hereof. All written or oral forward-looking statements attributable to Transcom WorldWide, any Transcom WorldWide members or persons acting on our behalf are expressly qualified in their entirety by the factors referred to above. We do not intend to update these forward-looking statements. CONSOLIDATED INCOME STATEMENT 2003 2002 2002 Full (M EUR) Jan 1-June Jan 1-June Year 30 30 Net sales 132.2 110.6 228.5 Cost of sales -101.9 -86.1 -177.8 Gross profit 30.3 24.5 50.7 Selling, general and admin -21.6 -19.5 -41.6 expenses Goodwill amortisation -2.2 -1.6 -3.5 Operating income 6.5 3.4 5.6 Net financial items -0.7 -0.3 -0.6 Profit before tax 5.8 3.1 5.0 Minority share in earnings -0.1 -0.2 -0.5 Taxes -1.9 -1.2 -2.1 Net income 3.8 1.7 2.4 Earnings per share before 0.06 0.03 0.04 dilution Earnings per share after dilution 0.05 0.02 0.03 Total weighted average 67,045,001 63,630,248 64,103,903 outstanding number of shares before dilution Total weighted average 76,083,282 70,724,087 71,935,136 outstanding number of shares after dilution CONSOLIDATED INCOME STATEMENT (M 2003 Apr 1- 2002 Apr 1- EUR) Jun 30 Jun 30 Net sales 67.4 52.5 Cost of sales -52.4 -42.1 Gross profit 15.0 10.4 Selling, general and admin expenses -11.4 -9.8 Goodwill amortisation -1.3 -0.8 Operating income 2.3 -0.2 Net financial items -0.4 -0.2 Income after financial items 1.9 -0.4 Minority share in earnings 0.0 0.0 Taxes -0.6 -0.1 Net income 1.3 -0.5 Earnings per share 0.02 -0.01 Total weighted average outstanding 69,269,825 63,630,248 number of shares TRANSCOM WORLDWIDE CONSOLIDATED 2003 Apr 1-Jun 30 2002 Apr 1-Jun 30 INCOME STATEMENT (M EUR) CIS ANALYSIS Net sales 4.2 0 Profit before tax 0.8 0 CONSOLIDATED BALANCE SHEET 2003 2002 31-Dec (M EUR) Jan 1-June 30 Jan 1-June 2002 30 Fixed assets Goodwill 62.6 41.8 46.5 Other fixed assets 21.7 24.6 25.6 84.3 66.4 72.1 Current assets Short-term receivables 59.0 48.4 41.7 Cash and bank 15.8 18.5 23.2 74.8 66.9 64.9 Total assets 159.1 133.3 137.0 Shareholders equity 86.2 76.3 77.9 Minority interest in equity 1.3 0.6 1.3 Long-term liabilities Convertible loan 18.0 15.5 15.6 Interest bearing liabilities 1.2 0.3 0.7 19.2 15.8 16.2 Short-term liabilities Non-interest bearing liabilities 52.4 40.6 41.6 Total shareholders equity and 159.1 133.3 137.0 liabilities CONSOLIDATED STATEMENT OF CASH 2003 2002 Full FLOWS Jan 1-June Jan 1-June Year (M EUR) 30 30 2002 Cash flow from: Operations 13.2 8.1 15.4 Capital expenditure -1.2 -2.1 -8.4 Purchase of business -11.8 0.0 -7.1 Changes in working capital -7.6 -5.1 4.3 Financing activities 0.0 0.0 1.4 Cash flow for the period -7.4 0.9 5.6 Opening liquid funds 23.2 17.6 17.6 Closing liquid funds 15.8 18.5 23.2 SHAREHOLDERS EQUITY 2003 Full Year 2002 (M EUR) Jan 1-June 30 Opening balance 77.9 74.3 Issuance of stock 4.8 1.3 Translation differences -0.3 -0.1 Net income for the period 3.8 2.4 Closing balance 86.2 77.9 The income statement and balance sheet are produced in accordance with International Accounting Standards. Transcom uses Euro as its reporting currency ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/08/07/20030807BIT00010/wkr0001.doc http://www.waymaker.net/bitonline/2003/08/07/20030807BIT00010/wkr0002.pdf