Interim report 1 jan - 31 mar 2002

Interim report 1 jan - 31 mar 2002 Important events during the first quarter and up until the date of this report · Continued strong demand for Utfors IP port leading to 2,075 contracted access points as at 31 March 2002, of which 362 during the first quarter. In addition, contracts have been signed for further 100 access points up until the date of this report. · 1,444 IP ports were active at the end of the period, representing an increase of 318 during the first quarter. The ARPU is stable from the previous quarter. Activations in the first quarter reflect the weak sales observed in the previous quarter. · New large customers for IP ports include J&W, Dotcom, Landstinget Halland, Coca-Cola Drikker as, Tornet, Swedish Building Workers' Union och AT&T. · Net total sales for the quarter amounted to SEK 151.5 million, an increase of 61.5 percent compared with the same quarter previous year, and an increase of 14,3 percent from previous quarter. · Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization) amounted to SEK -67.0 million (-81.6), representing an improvement from the SEK -86.4 reported last quarter. · The forecast for positive adjusted EBITDA is changed from the end of 2002 to the first half-year 2003. · New important partner contract with AT&T 3 mths 3 mths 12 mths Jan-Mar Jan-Mar Full-Year SEK million 2002 2001 2001 Net total sales 151.5 93.8 445.2 EBITDA 1) -65.3 -67.5 -360.0 Adjusted EBITDA 2) -67.0 -81.6 -355.1 Operating loss -137.0 -98.1 -556.5 Loss after -148.5 -109.1 -675.5 financial items3) 1) Earnings Before Interest, Taxes, Depreciation & Amortization. 2) Excluding earnings from network sales and items affecting comparability. 3) The amount includes foreign exchange gains/losses and commission costs etc. related to borrowings. Press Information Jan Werne, CEO tel +46 8 5270 2540, mobile +46 708 48 2540, email jan.werne@utfors.se Markus Boberg, Corporate Communications tel +46 8 5270 3016, mobile +46 708 48 3016, email markus.boberg@utfors.se Mikael Sköld, CFO tel +46 8 5270 3011, mobile +46 708 48 3011, email mikael.skold@utfors.se For the complete report, www.utfors.com, Investor Relations. LETTER FROM JAN WERNE, CEO AND GROUP PRESIDENT OF UTFORS AB During the first quarter 362 IP port contracts were signed, which I am pleased with considering the cautious market situation. Our partnership strategy is successful and we anticipate continued strong potential in this direction. Our strategy was indeed confirmed by three very important contracts being obtained during the period, composed of a three-year contract with Halland County Council in collaboration with DOTCOM; Tornet chose Utfors together with Sigma; and in collaboration with Softronic, a contract was signed with Svenska Byggarbetareförbundet [The Swedish Building Workers' Union]. A further important success for Utfors is the partnership agreement with AT&T. It is an affirmation of our technical platform and that our organisation stands up to the highest international standards. At the same time it is an agreement with considerable potential revenue for Utfors. The cooperation with AT&T means that Utfors becomes part of AT&T's Nordic infrastructure. In practice we are merging Utfors' Nordic infrastructure with AT&T's global network, which in addition will enable Utfors to supply services in all of the countries where AT&T is present. An initial result of this collaboration occurred in February when Utfors sold 50 IP ports to one of AT&T's costumers. Our network extension strategy of substantially increasing the number of tele-stations where inexpensive copper access is available has been successful. The proximity to customers within the range of the tele- stations reduces access costs and creates openings for new markets and service requirements. We have earlier made the forecast, provided continued strong growth in the market that Utfors would achieve positive EBITDA at the end of 2002. In view of revised assessments of market and sales trends, we believe that the positive EBITDA will be achieved only in the first half-year 2003. Taking this into account we still evaluate that Utfors' business plan is fully financed Solna, 25 April 2002 Jan Werne ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/04/26/20020426BIT00050/wkr0001.doc http://www.waymaker.net/bitonline/2002/04/26/20020426BIT00050/wkr0002.pdf