Mandator AB Interim report January - March 2007: Continued


First quarter 2007

  * Sales: SEK 143 (128*) million
  * Sales excluding non-recurring items: SEK 143 (119) mln
  * Operating profit: SEK 7 (14*) mln
  * Operating profit excl. non-recurring items: SEK 7 (5) mln
  * Operating margin excluding non-recurring items: 5 (4) %
  * Profit after tax: SEK 7 (14*) million
  * Earnings per share: SEK 0.04 (0.08*)

Comments from CEO Katarina Mellström

In 2006, we experienced some of the strongest growth in the IT
industry and, most pleasingly, we've managed to maintain this trend
during the initial part of 2007. Sales increased by 20% compared with
the first quarter of last year. Operating profit, adjusted for
positive non-recurring items reported last year, increased by SEK 2
million.

Mandator's three prioritised sectors, the manufacturing industry, the
telecom industry and the public sector, generate approximately three
quarters of our sales. Most growth was seen within telecom, which on
a rolling 12-month basis increased by 42% compared with the first
quarter of last year. Our involvement in the prestigious BT21C
telecom project in England continues to provide a base for expansion
in the UK market. During the quarter we established new operations in
Reading.

We recently merged our units in Southern Sweden and Denmark,
motivated by the strong growth seen in the Öresund region. The new
unit has 150 consultants under its wings and I look forward to the
effects of this increased cross-border collaboration from a customer
perspective, as well as that of our employees. We're strengthening
our position within project management, configuration management and
testing.

In 2006, Mandator saw a 71% increase in the numbers of assignments
and consultants at the company's three largest customers. The
manufacturing industry, with Sandvik and Volvo Cars to the fore,
played a major role in this development. Priorities for 2007 are to
broaden our offering to these customers so as to include more
packaged and specialised services within areas like nearshore,
e-learning and business systems. In the first quarter, we also signed
a new general agreement on IT services with Västra Götaland County
Council. Further to this, a new nearshore project was begun in
Sweden, encompassing systems development for a product company.

Organic growth has been the strongest driving force behind the
company's long-term positive earnings trend. In the short term, our
extensive recruitment process will have a dampening effect on the
utilisation rate, even though it increased a couple of percentage
points compared with the first quarter of 2006. At the beginning of
the year, we implemented a group-wide drive in skills development and
corporate culture to strengthen Mandator's image as an attractive
employer, to ease new consultants into assignments and to broaden
knowledge of Mandator's offering. This drive burdened the quarterly
accounts in the amount of SEK 2 million and I expect this investment
to be recouped before the end of the year.

The IT consulting services market shows good promise, even if pricing
levels are not increasing at the same rate as demand. Despite
increased competition for the most able employees, Mandator can
report one of the best growth rates in the industry. I'm satisfied
that we've maintained our positive earnings trend for yet another
quarter, though we're still to meet our long-term profitability
goals. In 2007, we'll take additional steps towards realising them.

*A non-recurring item attributable to realising part of the value of
tax-deductible deficits affected last year's sales and earnings in
the amount of SEK 9 million and earnings per share in the amount of
SEK 0.05. Adjusted for this non-recurring item, sales for the first
quarter increased by 20% compared with the same quarter of last year.


For further information, please contact:
Katarina Mellström, CEO and Group President, tel +46 703 09 22 50
Robert Karlsson, CFO, tel +46 709 565 141


The full report including tables can be downloaded from the following
link:
Mandator AB Interim report January - March 2007: Continued strong organic growth of 20%

Attachments
