QUARTERLY REPORT FOR TAGMASTER AB July - September 2013

Continued sales increase with profit
Third quarter

  · Net sales increased during the third quarter by 13% to 11,2 MSEK (9,8)
  · Result before depreciation (EBITDA) was 0,4 MSEK (0,5)
  · Net result was 0,01 (-2,9)
  · Result per share was 0,00 SEK (-0,03)
  · Cash flow from the business was 0,8 MSEK (-0,1)

January - September

  · Net sales increased during the period by 24% to 36,7 MSEK (29,6)
  · Result before depreciation (EBITDA) increased to 2,5 MSEK (1,1)
  · Net result was 1,3 MSEK (-3,0)
  · Result per share was 0,01 (-0,03)
  · Cash flow from the business was -1,8 MSEK (-2,4)

Sales   and result
TSEK                        Third   quarter        Accumulated   to September
                            2013    2012   Change  2013    2012   Change
Sales                       11 173  9 848  13%     36 690  29637  24%
Result from sales (EBITDA)  419     521    -20%    2542    1137   124%
Margin from sales(EBITDA)   3,8%    5,3%           6,9%    3,8%
Result before tax           13      -2861  -100%   1337    -2951  -145%
Operational cash flow       818     -121   -776%   -1761   -2392  -26%
Result per share            0       -0,03          0,01    -0,03

Comments by the CEO

Our positive sales development has continued but we are still not satisfied with
the growth rate. Our growth has been strong in the Asian region while Europe is
still weak. Our investment in the very important North American market continues
and we have during the period taken a number of important projects in
Access/Parking for some major universities.

Our work on a new product family within UHF continues according to plan and we
already see a great interest among our partners to get a wider offering from
TagMaster. With our new product family we will be able to address a market
segment where the growth rate is high and the launch will start during the end
of the year and sales start will be in the first quarter of 2014. This is just a
beginning of our development efforts to offer attractive and innovative products
meeting the customer needs today and for the future.

During the period we have worked on strengthening our offering to the
Transportation (Rail) business by clarifying the components of which our value
adding offering is composed. Ourdelivery will for the future consist of
consulting, products and service and we will thereby be able to increase the
value for our customers by offering them the competence and experience we have
consolidated over a number of years.

As we have said earlier, we are still in a mode of change which may influence
the stability in our quarterly figures during a few more quarters ahead of us.
Our profitability is still too low but we can see that all the initiatives we
work with in different departments are producing good results which will also
show up financially. We are on good way to show a profitable full year for
TagMaster which is the first step in building a future growth company.

Jonas Svensson

CEO

This report and previous financial reports and press releases are to be found on
the company home page www.tagmaster.com

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) systems and information products
for demanding environments. Application areas include vehicle access control,
rail bound transportation and logistics, 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.

www.tagmaster.com