Interim Report January-June 2003

7/31/2003 3:35 AM EST

INTERIM REPORT January - June 2003


·Net sales for the second quarter amounted to MSEK 9.7 (0.7),
and to MSEK 14.7 (2.5) for the period from January to June. The Group's
significant sales growth is due to the fact that the sales figures now
include sales generated by Factum Electronics, which was acquired at the
close of 2002, and to the Group's new strategy of intensified sales
activities as well as to normal seasonal fluctuations.

·Sales of the subsidiary Effnet AB continued to grow according
to plan. After undergoing extensive quality audits by some of the
world's leading telecommunications suppliers, Effnet has during the last
six months been entrusted with delivering its software to these new
customers, located in North America and Europe.

·Despite strong sales reported by Factum Electronics AB during
the second quarter, total sales remained somewhat below the level
budgeted for the first six months of the year. Factum Electronics signed
and delivered breakthrough orders to customers in both Europe and Asia
during this period. The delivery of a digital radio system intended for
Digital Multimedia Broadcasting applications to a major Korean TV and
radio broadcasting company received particular attention.

·Operating expenses for the second quarter amounted to MSEK 11.2
(16.9). Operating expenses for the six-month period totaled MSEK 19.4
(32,7).

·The Group's operating result for the second quarter was MSEK -
1.4 (-14.6), an improvement of more than SEK 13 million. The first six
months showed an improvement of over SEK 23 million, with the operating
result totaling MSEK -4.6 (-27.9). The result for the period from
January to June was MSEK -2.8 (-25.0), or SEK -0.05 (-0.46) per share.

·Liquid assets at the close of the period totaled MSEK 114.2
(MSEK 121.8 at year end), or SEK 2.08 (2.22) per share. Stockholders'
equity at the close of the period amounted to MSEK 108.2 (MSEK 111.0 at
year end), or SEK 1.97 (2.02) per share.

·Hans Runesten was appointed CEO on May 1, 2003.


For further information, please contact
Hans Runesten, CEO, +46 (0)8 564 605 50 or +46 (0)702 80 26 26,
Krister Moberger, CFO, +46 (0)8 564 605 50 or +46 (0)8 564 611 02
or visit: www.effnet.com