Teymi hf. Annual results 2007 Reykjavík, 30 January 2007 ISK 1,354 million profit after tax in 2007 Revenues amount to ISK 21,5 billion constituting an inner growth of 15,4% from the previous year (pro-forma) EBITDA amounted to ISK 4,009 million Recorded losses due to Hands Holding ISK 1,1 billion Net foreign exchange difference related to long term liabilities positive in the amount of ISK 930 million Cash generated by operations ISK 3,258 million Current ratio 1,25 at the end of 2007 Equity ratio 22% at the end of 2007 Teymi's profit in the year 2007 amounted to ISK 1,354 million. Inner growth of the company amounted to 15,4% compared to the year 2006 (pro-forma) and revenues to about ISK 21,5 billion. EBITDA amounted to ISK 4,009 million. Teymi has a current ratio of 1,25 and the equity ratio is 22,1%. Cash generated by operations amounted to ISK 3,258 million in 2007. Main results of the year 2007: • Sales amounted to ISK 21,5 billion compared to ISK 18,7 billion in the previous year (pro-forma) constituting an inner growth of 15,4%. • EBITDA amounted to ISK 4,009 million compared to ISK 3,561 million in the previous year (pro-forma) • EBIT amounted to ISK 2,312 million. • Share in loss of the associate Hands Holding and depreciation amounted to ISK 1,095 million. • Finance expenses exceed finance earnings by ISK 76 million in 2007. Net foreign exchange difference was positive in the amount of ISK 930 million. • Profit before calculated income tax amounted to ISK 1,120 million and the annual profit was ISK 1,354 million including discontinued operations. • Cash generated by operations amounted to ISK 3,258 million. Main results of Q4 2007: • Sales amounted to ISK 6,249 million constituting an inner growth of 16% from the same period in the previous year (pro-forma). • EBITDA amounted to ISK 1,063 million compared to ISK 852 million the previous year (pro-forma) • EBIT amounted to ISK 625 million. • Finance expenses exceeded finance earnings by ISK 1,098 million. Net foreign exchange difference was negative in the amount of ISK 752 million. • Loss before calculated income tax amounted to ISK 473 million. • Loss of the period amounted to ISK 221 million. • Cash generated by operations amounted to ISK 1,198 million. • Current ratio was 1,25 at the end of 2007 • Equity ratio was 22,1% at the end of 2007 Árni Pétur Jónsson, CEO „We are pleased with these results and the earnings are in line with our expectations at the beginning of the year. Our companies are gaining momentum, they show considerable growth and are presenting very good results. Teymi's inner growth exceeds the previous year by over 15% which shows that our companies are increasing their market share. Most of our subsidiaries are presenting their best results so far and our cash flow is strong. We are very optimistic at the beginning of this year and the prospects for our operations are good despite the unstable environment of the economy. In the electronic communications segment some important agreements have been concluded and the IT segment has a good standing considering current and future projects. These factors will sustain further growth of the group and increased revenues.“