Q-FREE – FOURTH QUARTER AND PRELIMINARY FULL YEAR RESULTS 2018

Performance in the fourth quarter of 2018 adjusted for one-off expenses related to the close-down of Jakarta was solid. The company delivered an EBITDA margin before non-recurring items of 9 percent, high order intake, and positive cash flow from operations.

Highlights for Q4-18 include:

* 241 MNOK in revenues, down 9% YoY as strong growth (32%) in non-tolling segments partly compensated for lower project revenues in tolling

* 22 MNOK in adjusted EBITDA (9% margin) compared to 40 MNOK in Q4 2017. 9 MNOK in reported EBITDA due to 13 MNOK in one-off expenses related to close down of Jakarta operation

* 262 MNOK in order intake, up 97% from 133 MNOK in Q4 2017

* 22 MNOK in operating cash flow incl. net investments and free cash flow of 18 MNOK

Highlights for FY 2018 include:

* 889 MNOK in revenues, down 9% from 2017

* 89 MNOK in EBITDA before non-recurring items (10% margin), down from 110 MNOK in 2017.
71 MNOK in reported EBITDA due to 18 MNOK in one-off expenses related to close down of Serbia, Malta and Jakarta

* 971 MNOK in order intake, up 58% from 2017. In addition, Q-Free signed frame agreements worth >100 MNOK in 2018

* 1 128 MNOK in order backlog (not including >200 MNOK in frame agreements), up from 1 049 MNOK at the end of Q4-17

* 117 MNOK in operating cash flow incl. net investments

– We are satisfied with the fourth quarter of 2018. It represents the ninth consecutive quarter with positive EBITDA margin. It is also very encouraging to see the continued strong growth in our order intake, which almost doubled compared to the fourth quarter of 2017. Given a healthy backlog for 2019 and good momentum in the business, we target double-digit revenue growth in 2019 and margin expansion driven by operational leverage and a shift towards higher-margin products and services, comments CEO in Q-Free, Håkon Volldal.

The live broadcast, starting at 9 AM CET, can be followed on

https://www.q-free.com/investor_relations/web-cast/

A recorded version will be available after the webcast has been concluded.

Enclosures: Q4-18 report, Q4-18 presentation

For further information, please contact:

President & CEO, Håkon Volldal: +47 977 19 973

CFO, Tor Eirik Knutsen: +47 950 50 062

About Q-Free

Q-Free is a leading global supplier of ITS (Intelligent Transportation Systems) products and solutions. The company has approximately 385 employees, offices in 16 countries, and a presence on all continents. Headquartered in Trondheim, Norway, Q-Free is listed on the Oslo Stock Exchange under the ticker QFR.

www.q-free.com

Twitter:@Q-FreeASA