Positive Trend With Strong Growth and Expanded Trading Services

Client trading through NeoNet grows significantly, which resulted in an increase in operating revenues of 52% in the fourth quarter and revenues amounting to SEK 78.7 m (USD 10.2 m). For the year, the operating revenues amounted to SEK 258.0 m (USD 33.4 m), an increase of 25%. Based on the earnings development and expected growth, the Board of Directors intends to propose a dividend of SEK 0.25 (USD 0.032) per share.

“We can look back on 2005 as a very strong year where revenues and earnings improved significantly,” said Simon Nathanson, CEO of NeoNet. “EBITDA improved by 54% for the full year and amounted to SEK 41.0 m (USD 5.3 m). This is very strong, especially considering the negative impact by SEK 5.7 m (USD 0.74 m) on the earnings from a larger trading error. Exclusive of the trading error the EBITDA amounted to SEK 46.7 m (USD 6.0 m) with a corresponding EBITDA-margin of 18%. The positive trend within direct market access continues and we have during the year expanded our offering with services for advanced program trading and added further access to new marketplaces.”

“Our sales efforts have been successful and more and more clients choose to trade with NeoNet for an increasing share of their total trading. By the end of the year, clients traded on an average of eight of the markets to which NeoNet is connected, which is twice as many as at the end of 2004. In addition, we have launched new system and software services under the name NeoNet eXchange Gateway (NeoNet XG). The NeoNet XG services create new opportunities and give clients a more complete offering where they can conduct all of their trading through us, independent of whether they have own exchange memberships or use our agency brokerage services. All in all, this means that we have an even stronger position going into 2006,” concluded Nathanson

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