Q-FREE FIRST QUARTER 2012: PREPARING FOR NEW PROJECTS

As stated at the presentation of the fourth quarter in February, focus for Q-Free in the first quarter has been about optimising profitability for the year.  Q-Free generated revenues of 121 MNOK during the first quarter 2012 compared to 170 MNOK in the corresponding quarter in 2011. The operating profit was – 9.8 MNOK compared to 5.1 MNOK last year. Order intake came in at 254 MNOK, 37 MNOK more than in previous quarter and 17 MNOK more than in Q1-2011, reflecting that the general optimism regarding demand is well grounded.

Most important short term is the development in the Jakarta project. The financing is not concluded yet, but good progress has been made. GIEK has approved to give guarantees for the project and Eksportfinans ASA and Q-Free’s client is currently negotiating the loan agreement. It is expected that the loan agreement will be signed during May 2012.

The order intake in the quarter is comprised by 143 MNOK congestion charging infrastructure in Gothenburg , 29 MNOK tag frame agreement with Abertis, a Spanish operator, AutoPASS contracts in Norway worth 28 MNOK, 15 MNOK access control contract with Brisbane Airport in Australia , 11 MNOK tag order from Via Verde, Portugal, and other smaller product orders from various markets. The Group’s order backlog totalled 595 MNOK at the end of the first quarter 2012 compared to 462 MNOK at the end of the fourth quarter 2011.

“It is very satisfying to finally start implementation of the congestion charging project in Gothenburg”, comments CEO Øyvind Isaksen and continues: “This project demonstrates both our commercial and technical strength, and we believe our single gantry solution will gather attention from many prospective customers”. Mr. Isaksen also highlights the project with Abertis, opening up new opportunities both in strategically important Spain and other parts of the world.

Outlook

“Our order intake this quarter indicates the high market activity,” says Mr. Isaksen. The company communicated last quarter an addressable opportunity pipeline of 5 – 15 BNOK globally for the next three years, and Mr. Isaksen see no reasons to revise this: ”We are working on company changing projects and believe it is just a matter of time before breakthrough in new markets.”

The company targeted NOK 1 billion in revenue with EBIT level exceeding 10 % for 2012. As the financial close for the Jakarta project is somewhat delayed, the key assumption for the year target is not met. Even so, the company still aim to be in the range of the target, depending on kick-off of the Jakarta project in May and conclusion on other projects in the first half of the year.

Trondheim 25th of April 2012

For further information, please contact:

CEO Øyvind
Isaksen, cell: +47 908 76 398

CFO Roar Østbø, cell: +47 932
45 175

About Q-Free

Q-Free is a leading global supplier of solutions and products for Road User Charging and Traffic Surveillance having applications mainly within electronic toll collection for road financing, congestion charging, truck-tolling, law enforcement and parking/access control. Q-Free offers solutions and products based on state of the art technology, and is the leading supplier within DSRC (tag), ALPR (Automatic License PlateRegistration) and GNSS (Global Navigation Satellite System) based solutions, with deliveries in Europe, Africa, Asia-Pacific, Middle East and North- and South America. The company has approximately 270 employees and is represented in 17 countries. Headquarter is based in Trondheim, Norway. Q-Free is listed on the Oslo Stock Exchange with the ticker QFR. q-free.com