3rd quarter results: Best-ever interim result for Ibas

- This is the first entire quarter with Vogon as wholly owned subsidiary. The interim results confirm that this acquisition was the right strategic choice, says President and CEO in Ibas Holding ASA, Bjørn Arne Skogstad.

- With the acquisition of Vogon we can now solve important and complicated assignments in the area of data-related corporate governance, says Mr. Skogstad.

Consolidated figures for the third quarter (pro forma figures for 2004)

Turnover:	Ibas achieved a turnover of NOK 49.2 million in the third quarter (2004: NOK 50.8 million). Adjusted for the appreciation of the Norwegian krone actual growth was 1 per cent.
EBITDA:	EBITDA came to NOK 12.6 million in the third quarter (2004: NOK 5.5 million). This figure represents an increase of 112 per cent, and an EBITDA margin totalling 25.6 per cent.
EBIT:	EBIT for the third quarter totalled NOK 10.8 million (2004: NOK 3.3 million). The EBIT margin for the third quarter was 21.9 per cent.
Pre-tax profit:	Pre-tax profit amounted to NOK 10.3 million for the third quarter (2004: NOK 3.0 million). This figure represents an increase of 246 per cent.

The Group has through the quarter focused on increased profitability and to secure a successful integration. The growth is in this period somewhat hampered by this. In previous years there has been a clear growth in turnover for the whole third quarter. This year the upturn came in the last half of the period. The quarter was however ended with the best-ever monthly turnover in September.

Vogon
Vogon has entered into major agreements with substantial participants in the international marketplace. The income flow is more balanced between the business areas now that the sales of data conversion and data-related corporate governance services have grown.

The acquisition of Vogon took effect on 31 May, and the accounts are consolidated as of 1 June.

Ibas
Business areas Data Erasure and Computer Forensics show a growth totalling 10 and 27 per cent respectively. Turnover for Data Recovery is down by two per cent, primarily due to an uneven rate of work flow during the summer. For Ibas, it is satisfying to see that overall growth has been strong in important markets on the continent, particularly in Germany, France and England.

Capital Status
Net cash holdings at the end of the third quarter totalled NOK 16 million. The Group has credit facilities totalling NOK 14 million, of which NOK 4 million has been drawn. A net contribution of NOK 28.1 million was received from a share issue implemented during the quarter as partial financing for the Vogon acquisition. The company’s book equity ratio at 30 September was 48.1 per cent as against 44.6 per cent at 1 January.

Acquisition of Vogon
The purchase agreement with Vogon’s former owners stipulates an increase in the final purchasing price in the event of a positive operating result for Vogon in 2005. At the end of the third quarter, Vogon posted a positive operating result, and NOK 9 million has been allocated to cover an increased purchasing price. This figure may change depending on the final operating results of the fourth quarter.
 

Outlook
The integration process is going as planned. From 1 January Ibas and Vogon will be integrated in one company.  The integration work is demanding, but expects to generate positive effects already in the first half of 2006. We anticipate further strengthened market position, further growth and good margins.

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Further information from:
Svein R Goli, chairman, Ibas AS, Phone: +47 33 46 77 90, mobile: +47 90 75 67 57

Bjørn Arne Skogstad, President and CEO, Ibas AS, Phone: +47 62 81 01 00, Mobile: +47 48 14 90 70,
e-mail: bjorn.arne.skogstad@ibas.no

Ibas is a world leader in the field of data recovery, data erasure services and computer forensics services. After the Vogon acquisition, Ibas Group dominates The Nordics, Germany, UK and France. The Norwegian stock listed group has a total of 171 employees, working at the main offices in Kongsvinger, Norway and in subsidiaries in nine countries – Sweden, Denmark, Finland, England, Germany, Poland, France, Singapore and USA. The company also has distributors and agents in a number of other countries in Europe and Asia.