This means that with effect from the 2008 accounting year, EDB will report on the basis of the following business areas:

 Global Sourcing comprises EDB's activities in the Ukraine and India. IS Partner was acquired with effect from 1 February 2008. EDB expects IS Partner to be fully integrated with effect from Q1 2009, from which time its activities will be reported as part of IT Operations and Application Services respectively.

 

The pro forma consolidated accounts for 2007 show operating revenue of NOK 8,250 million and EBITA of NOK 861 million as if companies acquired had been part of EDB with effect from 1 January 2007. This is equivalent to an EBITA margin of 10.4%.

 

The IT Operations business reported revenue of NOK 3,939 million for 2007 with EBITA of NOK 330 million, and is not affected by the acquisition of IS Partner.

 

EDB carried out the acquisition of CEKAB through the Solutions business area with effect from 1 April 2007. Pro forma 2007 revenue for the Solutions business area was NOK 1,404 million, with proforma EBITA of NOK 205 million.

 

EDB carried out the acquisitions of Tre60 and Team R3 in Sweden and Denmark respectively through the Application Services business area in 2007. In addition, EDB acquired Infopulse and Miratech in the Ukraine and Span Systems in India as part of its focus on global sourcing. With effect from 2008, the group's global sourcing companies will make up a separate business area, Global Sourcing. Pro forma revenue for the Application Services business area excluding the businesses in the Ukraine and India in 2007 was NOK 1,247 million, with pro forma EBITA of NOK 151 million. The Global Sourcing business area had pro forma revenue of NOK 174 million in 2007, with pro forma EBITA of NOK 22 million. The Global Sourcing business area is expected to achieve somewhat faster growth in 2008 than the growth rate for the Nordic market, with underlying margin in line with that achieved in 2007, but with extraordinary costs in respect of recruitment, training and directly-expensed equipment purchases. The costs involved are in line with previous indications, and are estimated to amount to around NOK 10 million per quarter with a gradual decline towards the end of the year.

 

The IS Partner business area reported revenue of NOK 1,708 million for 2007, with EBITA of NOK 22.8 million. IS Partner's reported revenue for 2007 was affected by the merger between Statoil and Hydro and compensation received for the loss of the Yara contract. Revenue in 2008 is expected, as previously announced, to be in the order of 5-10% lower, with EBITA margin of between 6-8%. EDB expects to be able to realise annual synergy benefits in the order of NOK 110 - 120 million, with half the annual benefit being realised as early as 2008. The costs involved in realising synergy benefits will be expensed as they are incurred, and are expected to total around NOK 35 million. As a result of cross selling from EDB to IS Partner, pro forma eliminations in the 2007 balance sheet increased by NOK 35 million to NOK 221 million in 2007.

 

Contact person:

Kristian Kuvaas Johansen, EVP and CFO. Tel: +47 476 03 334