Itera

Earnings Release • Oct 19, 2016

Good order inflows and positive growth

Good order inflows and positive growth

same period last

year. This growth

was achieved through

its nearshore

activities, with a

double-digit revenue

growth, and through

the Norwegian

consulting and

product units. The

revenue generated by

Itera's Danish

activities and its

IT hosting

activities in Norway

decreased slightly.

The Group reports

operating revenue of

NOK 91.8 million

(NOK 88.7 million)

for the third

quarter of 2016,

which represents

growth of 3 percent.

This revenue growth

was largely achieved

through the Group's

nearshore services,

whereas sales of

hardware/software

decreased

significantly.

- We are satisfied

with the development

in those parts of

the businesses that

deliver the

strongest results.

Going forward, we

will focus on

bringing out more of

the potential of the

other operations,

says Arne Mjøs, CEO

of Itera.

The Group's total

operating costs were

up 3 percent to NOK

85.5 million (NOK

82.4 million) in the

third quarter of

The operating result

before depreciation

and amortisation

(EBITDA) for the

third quarter of

2016 was a profit of

NOK 11.0 million (a

profit of NOK 11.1

million in Q3 2015),

and the operating

result (EBIT) before

non-recurring items

was a profit of NOK

6.3 million (a

profit of NOK 6.4

million in Q3 2015).

The EBIT margin was

6.3 percent as

compared to 7.2

percent in the same

period last year.

Cash flow from

operational

activities was NOK

4.4 million (NOK 5.3

million) in the

third quarter of

2016. This is NOK

6.7 million less

than EBITDA, which

is due primarily to

a reduction in other

current liabilities.

- Itera is finding

the market position

that it has created

in collaboration

with its customers

to be strong, and

believes that the

Group has the right

knowledge,

experience and

approach to further

strengthen its

position: insight

into advanced

technology, a good

understanding of

business, and a

strong focus on

creating good user

experiences. The

Group's range of

services in

communication and

technology are more

relevant than ever

before, says Arne

Mjøs, CEO of Itera.

During the third

quarter Itera was

recognised as one of

the top-25 most

innovative

organisations in

Norway across all

sectors, along with

other strong brands

such as DNV GL,

Norwegian, Snøhetta,

Telenor, Statoil and

Schibsted.

The revenue from

Itera's 30 largest

customers grew by 9

percent in the third

quarter of 2016 and

accounted for 75

percent of the

Group's operating

revenue, up from 69

percent in the third

quarter of 2015.

The proportion of

Itera's capacity

that is located

nearshore (its

nearshore ratio) was

36 percent (33

percent) at the end

of the third

quarter. The Group

has development

centres in Slovakia

and Ukraine and has

a strategic target

of achieving a

nearshore ratio of

50% in the future.

For more

information:

Arne Mjøs, CEO

Bent Hammer, CFO

+47 905 23 172

+47 982 15 497

arne.mjos@itera.no bent.hammer@itera.no

About Itera - great

experiences for the

customer's customers

Itera is a

communication and

technology company

that delivers

services in the

strategy and

consulting, design

and development, and

operations and

management areas.

Its customers are

Nordic organisations

that aim to deliver

great user

experiences to their

customers, and that

see the instrumental

contribution that

innovation,

efficient

communication and

good technology use

can make to

achieving their

goals. Itera is

headquartered in

Oslo, and has about

400 employees across

the Nordics and in

Ukraine and

Slovakia. Itera is

listed on Oslo Stock

Exchange under the

ticker ITE.