The group's operating profit before intangible asset amortisation (EBITA) rose to NOK 173 million in the first quarter of 2008 as compared to NOK 143 million in the same quarter of 2007, an increase of 21%.

"As 2008 unfolds, with the current uncertain market conditions, it is pleasing to be able to report growth in earnings and strong interest in EDB's services. The first quarter reflects a hard-working EDB - we have said that our objective is growth, and the first quarter figures deliver a marked improvement in both revenue and earnings", comments Endre Rangnes, CEO of EDB Business Partner.

Highlights of the first quarter of 2008:

• Operating revenue up by 16% from the first quarter of 2007.
• EBITA margin improved from the same quarter of last year. EDB reports a margin of 9.4% as compared to 9.0% for the first quarter of 2007.
• Strong demand for bank and finance solutions, and EDB reports organic growth in this area of 8%, which is well in excess of general market growth.
• EDB signed new contracts in the first quarter of 2008 representing total contract value of NOK 1 billion.
• The group's order backlog totalled NOK 14,170 million at the end of the first quarter, a net increase of NOK 2,553 million from 31 December 2007.
• EDB took over StatoilHydro's IS Partner from 1 February, and work on integration and realising synergies is proceeding in line with plan.
• EDB has renegotiated software and hardware contracts with the company's major suppliers. Total savings on new contracts with suppliers including IBM and HP are in the order of NOK 100 million annually. In addition to reducing costs, these contracts secure a more standard infrastructure for EDB, which is an important element in providing operational reliability for our customers.

Main figures for the first quarter of 2008

• Operating revenue of NOK 1,838 million. This represents an increase of 16% from NOK 1,583 million in the same quarter of 2007.
• Operating profit before intangible asset amortisation (EBITA) was NOK 173 million in the first quarter of 2008 as compared to NOK 143 million in the same quarter of 2007.
• Profit before tax for the quarter was NOK 98 million, as compared to NOK 96 million for the same quarter of 2008.
• Earnings per share for the first quarter of 2008 was NOK 0.73 as compared to NOK 0.74 for the first quarter of 2007.

Business areas
IT Operations: The business area reports revenue of NOK 903 million as compared to NOK 1,015 million for the same quarter of 2007. EBITA improved from 8% in the same period last year to 8.2% this year. The reduction in revenue is mainly due to the absence of revenue from the former contract with Apoteket in Sweden.

Solutions: The business area reports revenue of NOK 357 million for the first quarter of 2008, as compared to NOK 309 million for the same period last year. This is equivalent to revenue growth of 15% for the quarter. EBITA was NOK 49 million as compared to NOK 43 million for the same quarter of 2007.

Application Services: The business area reports revenue of NOK 317 million for the first quarter of 2008 as compared to NOK 290 million for the first quarter of 2007. Revenue grew by 9% and includes the acquisition of the SAP specialist TeamR3 in Denmark. EBITA was NOK 30 million for the first quarter of 2008 as compared to NOK 36 million in the same quarter of 2007. The decline in revenue is mainly due to seasonal factors.

Global Sourcing: The business area reports revenue of NOK 49 million for the first quarter of 2008 as compared to pro forma NOK 34 million for the first quarter of 2007. Revenue growth for the quarter was 44% and, and reflects increased activity with major customers including EDB. EBITA for the first quarter of 2008 was a loss of NOK 1 million.

IS Partner: The business area reports revenue of NOK 269 million for the period February to March 2008, as compared to NOK 252 million for the same period in 2007. EBITA margin has more than doubled; EBITA was NOK 40 million as compared to NOK 18 million for the same period last year, and margin improved from 7.2% to 15%.

Future prospects
EDB expects continued growth in the Nordic IT services market in 2008. Growth in demand is expected in particular for industry-specific solutions and consulting services. The outsourcing market is expected to show only weakly positive market growth in 2008. The Solutions business area is well positioned for growth in demand for industry-specific solutions, both from the bank and finance industry and from the public sector. Sound growth in demand is also expected for application services, where EDB with its 1,200 consultants is a major player in the Nordic countries. The Nordic market for IT services for oil and gas and other industrial companies shows good growth, and IS Partner is well positioned to deliver IT services to a broad range of businesses through its well-proven delivery methodology and service concepts.

The IT industry, both in Norway and internationally, is expected to see continuing consolidation, and EDB has played an active role in the consolidation process. The group's focus moving forward will be on profitable growth and building shareholder value, in part by rapid utilisation of the investments EDB has made in Global Sourcing.