Q-FREE – FIRST QUARTER 2020 RESULTS

Q-FREE – FIRST QUARTER 2020 RESULTS

In the first quarter of 2020 Q-Free reported a 10 percent YoY drop in revenues and EBITDA of -8 MNOK amid delayed purchase orders and deliveries in the Traffic Management segment. However, order intake was solid and the order backlog increased 6 percent from the previous quarter.

After closing of the first quarter, Q-Free has reduced its operating expenses by almost 7 MNOK per month compared to the Q1-20 run rate. The company will, subject to approval by an extraordinary General Meeting on May 18, significantly improve its liquidity and capital structure through 80 MNOK in expected proceeds from convertible bond issue and 82 MNOK in new loans.

Highlights for Q1-20 include:

* 202 MNOK in revenues, down 10% YoY

* -8 MNOK in EBITDA compared to 9 MNOK in Q1-19

* 220 MNOK in order intake and 55 MNOK in additional frame agreements

* 1 140 MNOK in order backlog, up 6% from the previous quarter

* New and simplified operational structure implemented according to updated strategic plan

– The first quarter was negatively impacted by delayed purchase orders and deliveries in our Traffic Management segment. However, the cost reduction measures we have now implemented and the new financing we have obtained, subject to EGM approval only, will enable us to execute on our focused strategy to build leading and profitable positons in Tolling and Traffic Management, comments President & 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: Q1-20 report, Q1-20 presentation

For further information, please contact:

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

Interim CFO, Trond Christensen: +47 481 02 754

About Q-Free

Q-Free is a leading global provider of ITS (Intelligent Transportation Systems) products and solutions for efficient, safe and environmentally friendly transportation. The company has approximately 400 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.

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