Observer decides on a revised strategy, new long term financial targets and dividend policy

8/24/2006 2:55 AM EST

Observer’s Board of Directors has decided on a revised strategy, new
long term financial targets and dividend policy.


Revised Strategy
Observer aspires to capture an increased share of the growing market for
reputation and campaign management, media monitoring and research of
media contacts by offering an innovative portfolio of services &
solutions for Communication Professionals and Consultants within PR, IR
and Marketing, with prime focus on large and international companies and
organizations.

Value for clients, employees and shareholders will be created through:

1. Using Observers strength in having access to all relevant content in
all channels and by offering integrated and, for more complex needs,
customized, services and solutions.
2. Creating a uniform profile and offering with global reach,
leveraging current presence on the world’s most important markets and,
through partners, on other relevant markets.
3. Increased efficiency, targeting further economies of scale and a
corporate culture characterized by effectiveness, commitment and
innovation based on clients’ needs.


Long Term Financial Targets
Organic Growth ≥ 6 %
Operating Margin (EBIT) ≥ 18 %
Return on Operating Capital ≥ 15 %
Debt/equity ratio < 100 %
Interest Coverage > 4.0x


Dividend Policy
Surplus funds will be distributed to shareholders whereof on average 25
percent of the Group’s earnings after tax through dividends. Surplus
funds are defined as funds not needed for investments, expansion, and
other needs relating to the financial position of the Group.


Capital Market Day
A presentation of Observer’s revised strategy and integrated services
will be presented on a Capital Market Day in connection to the Interim
Report for the third quarter.


Stockholm as above,
OBSERVER AB


Board of Directors


For further information, please contact:
Anders Böös, Chairman, telephone:
+46 8 507 410 10

Niklas Flyborg, President and CEO, telephone:
+46 8 507 410 10, e-mail:  

Gunilla Rudebjer, CFO, telephone:
+46 8 507 417 23, e-mail:  


“We improve clients’ performance through integrated services and
software solutions for reputation and campaign management, media
monitoring and research of media contacts.”