2008-07-18 18:52:09 CEST

2008-07-18 18:53:10 CEST


REGULATED INFORMATION

English Islandic
Nýherji hf. - Financial Statement Release

- First Half 2008 Financial Highlights 


• Net income from Nýherji's core business and Applicon's operations outside
  Iceland was satisfactory but results for recent investments were below
  expectations 

• Sales of goods and services: ISK 7,129 million of which 22% came from
  operations outside Iceland 

• EBITDA: ISK 268 million compared to ISK 302 million in 1H 2007

• Currency losses: ISK 455 million 

• Net loss: ISK 432 million compared to ISK 209 million profit in 1H 2007


Message from Thordur Sverrisson, Managing Director:

“The operating and net income from both Nýherji's core business and from
Applicon's operations outside Iceland was satisfactory. Negative returns from
recent investments weighed on results for the quarter, but work will continue
on creating synergies between existing and recently acquired businesses. EBITDA
was lower than last year, because of net losses in certain operating units and
considerable expenses for software development. The continued depreciation of
the krona and high interest rates in Iceland have also had a greater negative
impact on our net income than anticipated.” 


See attachment.