Ementor Group (OSL:EME) Ementor Delivers 18.8% Revenue Growth And Operating Profit Of MNOK 64.5, Up 27.7%

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Ementor, the number one supplier of IT infrastructure products and services in the Nordic and Baltic region, today announced third quarter 2008 results with a strong revenue growth of 18.8% and strong operating profit of MNOK 64.5, up 27.7% year-over-year. EBITDA margin ended at 3.2%. Continued exceptional growth in services revenue contributed to the solid results.

The total revenue of MNOK 3 078.6 represents an organic growth of 12.9%.

"We deliver exceptional revenue growth with a continued strong growth in services for the Group," says Claus Hougesen, CEO in Ementor ASA.

Group EBITDA in third quarter 2008 ended at MNOK 98.1, an increase of 18.8% year-over-year, representing an EBITDA margin of 3.2%. Continued strong performance in services with growth of 34.6% year-over-year, mainly explains the improvement in EBITDA.

Q3 2008 financial performance by geographical segments

Norway Revenue in third quarter was MNOK 771.0 compared to MNOK 676.4 in Q3 2007. Revenue grew by 14.0%, of which 7.5% is a result of organic growth. Organically, services revenue grew by 5.6% and reflects an increasing demand for services. Correspondingly, product revenue grew by 8.0% and indicates a general growth and one large project of MNOK 30.

Norway delivers EBITDA margin of 4.3% in third quarter 2008 which is down from 6.0% in the corresponding period last year. The main reasons are changes in product mix with sales increases in products with lower margins, and increases in operating costs. Increases in operating costs reflect mainly acquired companies and opening of a new office in Bodø. In addition 25 consultants have been hired in third quarter 2008 and are currently being trained at the Microsoft Academy.

In September 2008 Kongsberg Systec AS was acquired. Systec is a leading regional IT infrastructure company with expected annual revenue of MNOK 400.

Denmark Denmark continues to deliver strong performance and third quarter EBITDA ended at MNOK 48.9 (4.4% margin), compared to MNOK 34.9 (3.6% margin) in the same period last year. This represents an EBITDA improvement of 40.1%. Revenue in third quarter was MNOK 1 113.2 compared to MNOK 976.1 in the same period last year. This represents a growth of 14.0% and reflects strong organic growth in both services and products. Services grew by 41.6% and mainly explains the improvement in results. The increase in operating expenses compared to the third quarter of 2007 is largely due to the hiring of forty additional billable consultants and increased sales activities.

In September 2008 Netkoncept Advisors was acquired. The company offers IT infrastructure and is expected to generate a revenue of MNOK 66 in 2008.

Sweden Sweden reports third quarter EBITDA of MNOK 20.5, representing an EBITDA margin of 2.5% which is up from MNOK 6.2 or 0.9% margin in the corresponding period last year. Revenue in third quarter of MNOK 834.6 grew organically by 25.1%. Product revenue grew by 20.5%, mainly as a result of higher software sales. Services revenue grew by 44.0% and demonstrates strong demand for value added services. Increase in operating expenses mainly reflects hiring of 171 consultants compared to same period last year. The strong growth in services explains the improvement in results.

On July 1, 2008, Atea Sweden acquired Spintop AB. Spintop is specialized within automation of IT processes and has a budgeted revenue of MNOK 39.7 and EBITDA of MNOK 11.5 in 2008.

Finland Revenue in third quarter was MNOK 273.2 which is up from MNOK 251.2 in third quarter 2007. The 8.8% growth represents a strong growth in services and growth in products. Increases in operating expenses of MNOK 12 is mainly due to more service people. EBITDA ended at MNOK -0.3 which is below last year. Revenue growth and increased market pressure continue to be main focus moving forward in the Finnish market, which is a market with significant potential for the Group.

A new decentralised organisational structure will be implemented from November 2008 with regional responsibilities for profit & loss and key business areas, similar to the organisational model used in Norway and Sweden.

The Baltics The Baltics report a revenue of MNOK 84.4 in the third quarter 2008 compared to 93.2 in Q3 2007. Last year third quarter included a large IT security solution project of MNOK 12. The Baltics report an EBITDA of MNOK 2.0 in the third quarter 2008, down from MNOK 4.6 in the same period last year.

Due to worsening of the macroeconomic picture in the Baltic countries, projects are being postponed in the private sector. However, there is still significant EU funding available for the public sector, so investments are expected. In October 2008, a one year agreement of MNOK 59 to deliver IT infrastructure hardware to the Ministry of Internal Affairs in Lithuania was signed.

Outlook The Group's strategy is to further strengthen its position as the leading Nordic and Baltic supplier of IT infrastructure products and services.

The Nordic IT industry will, according to IDC forecasts from October 2008, experience positive growth rates of 3.5%-4.9% during 2008-2010, in spite of some minor downward adjustments. The Group expects to be less than average affected by a potential slowdown in the Nordic economies as more than half of its business is public sector customers and other non cyclical customers. Important technology trends, such as Unified Communication, mobile infrastructure solutions, virtualisation, software asset management, desktop lifetime management and "Green IT" - areas in which the Ementor Group has established a strong focus - will also help fuel IT investments going forward. In addition to organic growth potential for the Group, a fragmented IT infrastructure market continues to provide interesting acquisition growth opportunities.

Ementor maintains the financial guidance for 2008 with EBITDA margin of 4.0% and revenue growth.



The quarterly report and presentation is available at www.ementor.com/reports The press conference is available through webcast at www.ementor.com/webcast The Stock Exchange Announcement is available at www.ementor.com/ose



For further information, please contact: Claus Hougesen, CEO Ementor ASA, mobile + 45 25 43 51 62 Rune Falstad, CFO Ementor ASA, mobile + 47 90 61 44 82



About Ementor The Ementor Group is the leading Nordic and Baltic supplier of IT infrastructure products and services. The Group has more than 4300 employees and is present in 72 cities in Norway, Sweden, Denmark, Finland, Lithuania, Latvia, Estonia and Russia. The Group has revenue of approximately NOK 15 billion and uses the Ementor, Atea, Topnordic and Sonex brands in its business. The company is listed on the Oslo Stock Exchange. www.ementor.com

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Ementor Group PB. 6472 Etterstad Oslo Norway

WKN: 884578 ; ISIN: NO0004822503; ;

Ementor Group
www.ementor.com

ISIN: NO0004822503

Stock Identifier: OSE.EME