Asetek A/S

ASETEK - Q1 2014 Improved margins and continued data center order inflow

April 24, 2014 - Revenues increased by 10% over first quarter last year,

driven by continued progress on a data center retrofit contract with the

U.S. Department of Defense. Overall gross margin improved by 3.5

percentage points, reflecting a proactive approach to optimizing the

offered product mix, as well as cost savings achieved with certain

component suppliers. The company received two new orders for RackCDU in

the first quarter 2014.

Revenues came in at $5.4 million, up from $4.9 million in the first

quarter 2013. Operating profits from the desktop segment were $1.1

million, in line with the $1.1 million in the same period last year.

Operating losses from the datacenter segment were also level with last

year's results at $1.3 million. Data center spending reflects continued

investments in development and marketing in the segment. Asetek shipped

106,000 patented sealed liquid cooling units in the first quarter.

"The continued order inflow for RackCDU shows us that the market

adaption of Asetek's product is developing. We also received an order

for an end user who uses the RackCDU in its daily operations, and is

purchasing additional units. That's a great product validation," says

André Eriksen CEO of Asetek. "On the financial side, I am satisfied with

the margin improvement we have achieved, and also pleased to see that

revenues came in with growth according to plan".

Asetek will give a presentation today at 08:30 CET which can be followed

through a webcast. CEO André Eriksen and CFO Peter Dam Madsen will

represent the company.

The webcast can be accessed on

http://webtv.hegnar.no/presentation.php?webcastId=19246836.

Questions can be submitted through the online webcast during the

presentation.

For further information, please contact:

Andre S. Eriksen, Chief Executive Officer

Mobile: +1 408 398 7437, e-mail: [email protected]

Peter Madsen, Chief Financial Officer

Mobile: +1 408 813 4147, e-mail: [email protected]

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