YEAR- END REPORT 2014

All time high in result and revenue

Fourth quarter

  ·
Net sales increased by 40% during the fourth quarter and was 18,9 MSEK (13,5)

  ·
Result before depreciation (EBITDA) was 2,0 MSEK (0,2), corresponding to a
margin of 10,4% (1,7)

  ·
Net result was 1,4 MSEK (0,1)

  ·
Result per share was 0,01 (0,00)

January - December

  ·
Net sales increased during the period by 25% to 62,5 MSEK (50,2)

  ·
Result before depreciation (EBITDA) increased by 155% to 7,1 MSEK (2,8), which
corresponds to a margin of 11,3% (5,5)

  ·
Net result was 5,2 MSEK (1,8)

  ·
Result per share was 0,05 (0,02)

  ·
Cash flow from the business for the period January to December was7,9 MSEK (
-1,2)

  ·
No dividend is proposed

Försäljning
och resultat
TSEK          Fourth quarter                  Full year
              2014            2013    Change  2014       2013    Change
Sales         18 895          13 506  40%     62 505     50 196  25%
Operating     1 973           234     743%    7 084      2 776   155%
income
(EBITDA)
Operating     10,4%           1,7%            11,3%      5,5%
margin
(EBITDA)
Income        1 858           135     1276%   6 740      2 380   183%
before tax
Operating     5 286           552     858%    7 917      -1 209  -755%
cash flow
Earnings per  0,01            0               0,05       0,02
share

Comments by the CEO

Our sales during the fourth quarter have had a continued good growth and we show
a record turnover for a single quarter. Our Rail business has been satisfactory
during the period with an even flow of serial deliveries to several customers.
New projects are discussed and our focus is to work more and tighter with our
already established big partners, with whom we want to expand our business and
become a more important business partner for them. We make the judgment that we
will see some more new projects coming during 2015. We have after analyzing the
business made the judgment that our product offering is most successful in
certain specific applications and we will therefore “drill deeper” in these
applications and spend less time on the requests regarding our less efficient
offerings. Being a small company it is extremely important that we focus on the
right things and especially within Rail Solutions where the projects are
complex, project specific and always demanding major resources.

Our Traffic business has continued to develop well in the US market, while it
has also continued to be weaker in the Chinese market. In the EMEA region the
sales has been according to plan, but we intend to increase our efforts there
during 2015 supported by our newly launched UHF products and which we judge will
have a positive impact on sales and margin during the years to come. In the
Nordic market, with which we are not satisfied, we increase our presence and we
already see that our new UHF reader finds a great interest among established as
well as new partners. We generally need to grow our customer base in all our
regions within Traffic solutions to be able to grow in the pace we want to.

The innovation work will continue with increasing speed and we plan to launch
more products in our new UHF family during the spring. In focus for our product
innovation we have the customer’s need for security and safety, reliability,
functionality, design and life cycle cost. Our judgment is that that further
launches is a must and that we thereby will increase our addressable market and
this is a fundamental requisite for increasing our growth. To support our long
term growth plans we continue to recruit new employees in especially technical
development.

Our result of 2,0 MSEK (0,2), is a strong improvement compared to previous years
and our full year result of 7,1 MSEK is the strongest result in the company’s
history. Altogether we are happy with record revenue and a record result, but we
want to achieve more ahead. Our cash flow has developed well during the quarter
and also for the year which can also be seen in our significantly better balance
sheet.

Our new UHF products and our focused work in Rail Solutions will contribute with
the major part of our growth the next few years to come, but we also see
selective acquisitions as a way to complement our product portfolio with the
purpose to increase the value and the attraction of our customer offering.

Jonas Svensson

CEO

For further information, please contact:

Jonas Svensson, CEO, +46 8-6321950, jonas.svensson@tagmaster.com

About TagMaster

TagMaster is an application driven technology company that designs and markets
advanced radio frequency identification (RFID) products and systems for
demanding environments. Business areas include Traffic Solutions and Rail
Solutions providing innovative applications in order to increase efficiency,
security, convenience and to decrease environmental impact. TagMaster has
dedicated agencies in the US and in China and exports mainly to Europe, Middle
East, Asia and North America via a global network of partners, systems
integrators and distributors. TagMaster was founded in 1994 and has its
headquarters in Stockholm. TagMaster is a public company and its shares are
traded on First North stock exchange in Stockholm, Sweden. For more information
about TagMaster, please visit www.tagmaster.com