Orc Software Interim report January 1 – June 30, 2005

- Revenue for January-June 2005 amounted to SEK 134 (128) million with an operating income of SEK 9 (25) million, giving an operating margin of 6.5 (19.1) percent. Income after taxes amounted to SEK 7 (19) million.

- According to the accounting principles applicable prior to the adoption of IFRS, revenue for January-June 2005 would have amounted to SEK 124 million and operating income to SEK 3 million.

- Revenue for April-June 2005 amounted to SEK 68 (64) million with an operating income of SEK 1 (11) million, giving an operating margin of 1.5 (17.0) percent. Income after taxes amounted to SEK 1 (8) million.

- Earnings per share for January-June 2005 amounted to SEK 0.53 (1.30).

- A letter of intent was signed with OMX regarding development of a new front office platform for sales to exchanges.

- During the second quarter actions were taken in order to make the business more efficient and to increase profitability. The cost increase in comparison with the previous quarter of SEK 8 million was related to increased costs for negative foreign exchange differences related to IFRS, restructuring of an existing Liquidator agreement and the efficiency program, of which SEK 4.2 million was attributable to the efficiency program. The program is expected to result in annual savings of approximately SEK 15 million, with full effect from the beginning of 2006.

- The target for the fourth quarter of 2005 is an operating margin of at least 15 percent.

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