Nýherji hf. - Financial Statement Release

Nýherji's results for Q1 2010

Highlights of Q1 2010 performance

•  Total group income amounted to ISK 3,509 million, or similar to that of Q1
   2009 

•  EBITDA for the quarter was ISK 35 million, while total comprehensive loss on
   the period was ISK 130 million
•  EBITDA on domestic operations is positive, while foreign operations are on
   the borderline 

•  Applicon A/S concluded a major 3-year contract for ISK 1.8 billion, ensuring
   good performance from operations abroad this year.  The loss on Applicon's Q1
   operations amounted to ISK 32 million, but the outlook is for good profit for
   the remainder of this year 

•  The company's financial situation will be reinforced in coming months with a
   share capital increase and sale of assets 



Thordur Sverrisson, CEO:

“Operating income on Nýherji's domestic activities grew by 3% over the previous
year in Q1 and EBITDA improved by almost ISK 65 million. Q1 product sales are
up by almost 25% from Q1 last year and software consultancy and services are
regaining balance. 

Major contracts of Applicon A/S improved the operating performance of
activities abroad at the end of the quarter. While this company has operated at
a loss totalling ISK 125 million the past two quarters, these contracts ensure
good results in upcoming quarters. 

The outlook for the company's performance is now positive, following the
extensive actions undertaken in Iceland to cut costs, adapt operations to the
market situation and obtain important contracts both at home and abroad. 

Nýherji's main task for the coming months will be to secure the company's
financial situation. Proposals have been approved by the Board of Directors to
the company's bankers involving measures to conclude its financial
restructuring, including a share capital increase and sale of assets.”


For further information contact:
Thordur Sverrisson, CEO of Nýherji, tel. +354 893 3630

Attachments:

press release.pdf