Interim report, 1 January-30 June 2002

8/12/2002 10:16 AM EST

· Profit before goodwill amortisation rose to SEK 3.1 million (- SEK
4.5 m).
· The pre-tax loss fell to - SEK 1.3 million (- SEK 30.2 m).
· Operating income rose 48 per cent to SEK 54.3 million (SEK 36.7 m).
· Operating expenses excluding goodwill amortisation fell 12% in Q2.
· Avanza won the Online Broker of the Year award for 2002 in April.

Comments from the Managing Director
"In spite of the general stock market decline, Avanza's operations have
been able to report a profit. We have now posted a profit before
goodwill amortisation for the last four consecutive quarters, a result
few online brokers can match even internationally," says Nicklas
Storåkers, Avanza's Managing Director.

"July was a strong month for Avanza on the stock market and the company
improved its market share compared with its main competitors. During
July, Avanza's customers concluded over 70% more deals than during June.
A healthy inflow of new customers, together with the relatively high
number of days during which the stock market was open for trading during
the month, as well as the fact that a growing number of major companies
now present their half-yearly reports during July, all contributed to
the high level of activity. In addition, institutional customers
increased their activity during July."

"Another of the reasons for our operating profit is our cost-awareness,
which has helped the company make continuous cost cuts. We were able to
cut costs by 12 per cent last quarter."

"Yet another sign that we are now on the right track is the fact that we
received the Online Broker of the Year award for 2002 in April. It is
awarded by the Swedish business magazine Privata Affärer and was based
on an extensive customer survey and tests performed by an expert panel."

For more information, please contact Nicklas Storåkers, Managing
Director of Avanza, tel.: +46 70 861 80 01.
Business performance
During the first half of 2002, the Stockholm Stock Exchange dropped 24
per cent. For Avanza, the weak market climate has led to a 36 per cent
drop in trading activity, with figures of 0.7 (1.1) transaction per
active customer and month compared with the same period the previous
year. Average brokerage income per contract for Avanza´s accounts,
however, rose to SEK 97 (SEK 76). Operating income per active customer
came to an average of SEK 700 during the first half of the year.

Due to the fact that customers have been net purchasers of shares
throughout the first half, borrowing, including client funds, fell to
SEK 1,039 million (SEK 1,227 m on 31 December 2001). Lending fell to SEK
192 million (SEK 214 m on 31 December 2001) due to the lower credit
limits brought about by the decline in the market value of major listed
companies.

Due to the negative performance of the stock market, the total value of
custodian accounts at Avanza has fallen to SEK 6.6 billion on 30 June
2002 (SEK 8.4 billion on 31 December 2001). On 30 June 2002, the total
number of open accounts was 96,400, an increase of 1,100 compared with
the turn of the year. The gross inflow of new accounts during the period
under review was + 5,200. Over the same period, 4,100 mainly passive
accounts have been closed with a view to cutting costs. The number of
active accounts at the end of the first six months of the year came to
72,400 (73,000 on 31 December 2001).

During Q2, Avanza's market share on the Stockholm Stock Exchange was 4.2
per cent (3.4%) of the number of transactions and 0.5 per cent (0.3%) of
the turnover.

In April, Avanza won the Online Broker of the Year award for 2002. The
award is given by the Swedish business magazine Privata Affärer and was
based on the most extensive survey of online share trading services ever
performed in Sweden. Meanwhile, Avanza's product development has
continued at a rapid pace throughout Q2 2002. During the early summer,
the market's most extensive service for short-selling shares online was
introduced, along with better account information and a wider range of
other information, including improved key figures as well as insider
statistics and a detailed company calendar.

On 29 May 2002, Avanza suffered a serious systems failure that caused
Avanza's customers to lose direct contact with the Stockholm Stock
Exchange for a 24-hour period. The reason for this downtime was a cable
fire in Stockholm. The direct loss of income caused by the systems
failure totalled SEK 0.2 million. Avanza intends to take steps to ensure
that such damages cannot occur again. During the first half of the year,
the company's accessibility level was 98.9 per cent.
Financial results and status
The Group
Commission income totalled SEK 38.5 million (SEK 29.1 m) for the period,
while operating income came to SEK 54.3 million (SEK 36.7 m), equivalent
to an increase of 32 and 48 per cent respectively compared with the same
period the previous year.

Net interest income totalled SEK 19.4 million (SEK 10.7 m), which is
equivalent to an increase of 81 per cent compared with the first half of
2001.

Brokerage income minus direct costs accounted for 54 per cent of total
operating income, while net interest income, custodian account fees and
other income accounted for the remaining 46 per cent.

Operating expenses, excluding goodwill amortisation, totalled SEK 51.2
million (SEK 41.2 m) for the period, which corresponds to average
monthly expenses of around SEK 8.5 million. For seasonal reasons, costs
are high during Q1 but have, as forecast, been cut by approximately 12
per cent during Q2.

Profit before goodwill amortisation came to SEK 3.1 million (- SEK 4.5
m) for the period, which is equivalent to an operating margin before
goodwill amortisation of 5.7 per cent (neg.). The pre-tax loss for the
first half fell to - SEK 1.3 million (- SEK 30.2 m), while the Q2 pre-
tax loss came to - SEK 1.6 million (- SEK 17.7 m).

Shareholders' equity on 30 June 2002 totalled SEK 177.4 million (SEK
178.3 m) or SEK 6.7 (SEK 6.7) per share. The Group's liquid assets came
to SEK 394.6 million (SEK 356.7 m).

The Parent Company
Avanza AB is reporting a pre-tax loss for the period of -SEK 2.0 million
(SEK 15.7 m)). Net sales came to SEK 0.0 million and the company had
liquid assets of SEK 0.6 million (SEK 0.7 m).

Outlook for the third quarter
An improvement in the level of activity compared with Q2 is anticipated
in Q3. Activity has already increased during July as compared with June,
and it is believed several major corporate events, such as the new
Ericsson share issue that is under way, will lead to greater interest in
the stock market. Avanza intends to make further cost cuts during Q3,
amounting to a few percentage units.
Other matters

Shareholders' meetings
The Board of Directors of Avanza has called an extraordinary
shareholders' meeting with a view to passing a resolution concerning a
new warrants programme directed at all employees of the company. The
shareholders' meeting will be held on 19 August 2002 at 14.00 at
Ingenjörshuset, Malmskillnadsgatan 46 in Stockholm.

Financial calendar
Interim report, January-September 2002 21 October 2002
Preliminary year-end report February 2003

Stockholm
12 August 2002

Nicklas Storåkers
Managing Director

This report has not been reviewed by the company's auditors.