Itera

Fourth quarter 2014 accounts

Itera's strategy is about developing large, long-term

customer relationships, increased ratio of project

deliveries based on the width of the group's service

spectrum, utilization of nearshore resources and focus on

efficiency in the organization. The Group develops its range

of services in line with customer needs, based on the

combination of communication and technology.

Itera had a positive revenue growth for its consultants in

the fourth quarter. However, the Group experienced lower

volumes in the operations activities as well as high

restructuring costs in the same period, especially in

Sweden. As previously communicated, there has also been an

income reduction from the nearshoring activities throughout

the year, due to the situation in Ukraine.

Accrued restructuring costs and provisions including rent

obligations makes Itera report an operating profit (EBIT) of

about -5 million in the fourth quarter of 2014. Cash flow

from operations in the fourth quarter 2014 is good with a

bank balance of approximately MNOK 67 31.12.2014, unchanged

from the same time in 2013.

Itera has decided to carry out the necessary adjustments to

counteract the situation. The Group no longer considers the

Swedish operations business essential for implementing the

strategy, and has therefore started a process to sell this

part of the business. Itera is going to focus its activities

in Sweden in consulting with emphasis on digitization,

business intelligence / big data and nearshoring services.

In addition to refocusing in Sweden, the company will

liquidate an unprofitable division in the Norwegian

operation business in the first quarter of 2015.

The planned actions will position Itera for profitable

growth and a strong cash flow in 2015. Further information

will be given on the fourth quarter presentation on February

26th.

For more information:

Arne Mjøs, CEO

+47 905 23 172

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