Arribatec Group ASA — Earnings Release 2018

Nov 16, 2018

HIDDN: Financial results for the third quarter of 2018

HIDDN: Financial results for the third quarter of 2018

Strong cost control and gross margins close to 40% reduces EBIT loss and cash

burn rate

(Oslo, 16 November 2018) Hiddn Solutions ASA (Hiddn, OSE: HIDDN) recorded

revenues of NOK 3.4 million in the third quarter of 2018 (Q3 2017: NOK 4.3

million) and reduced the operating loss to NOK 10.4 million (Q3 2017: NOK 13.4

million). Hiddn continues to expand the product offering and distribution

capabilities in Europe and US/Canada as the company is preparing for increased

sales and volume production in 2019.

"Hiddn continued to expand the product offering, improving production

capabilities and opening new distribution channels during the third quarter. We

are on track for our 2018 targets. We reported a reduced burn rate, strong cost

control and gross margins of close to 40%. In addition, we are developing our

product roadmap as we are looking towards increased sales and volume production

in 2019, " says Carl Espen Wollebekk, CEO of Hiddn.

Hiddn reported revenues of NOK 3.4 million in the third quarter of 2018, down

from NOK 4.3 million in the corresponding quarter last year. The company

recorded a gross profit of NOK 1.3 million, equalling a gross margin of 37%.

This is up from a gross profit of NOK 0.8 million and a gross margin of 18% in

the corresponding quarter last year. The loss before tax ended at NOK 10.5

million in the third quarter of 2018 compared to a loss before tax of NOK 13.4

million in the corresponding quarter last year.

After the closing of the quarter, Hiddn received the first order from ALSO

Holding AG (ALSO). The initial order from ALSO covers Hiddn's flash and USB

products for Scandinavia and Hiddn is currently also finalising the availability

for these products for the rest of Europe. In addition, Hiddn is preparing the

upcoming inclusion of Hiddn's SafeDisk solution for laptops and tablets into the

ALSO product offering.

"This first order from ALSO confirms the demand for Hiddn's GDPR compliant

secure data storage solutions in Scandinavia and is a stepping stone into

launching the new range of products and services in both Scandinavia and the

rest of Europe, "Wollebekk continues.

Going into 2019, Hiddn is preparing for increased production and sales and the

company recently announced Jørgen Waaler as SVP for Partner sales.

"All major elements of our growth strategy should now be in place. As a response

to the anticipated increase in demand for Hiddn's products, we are now preparing

our first major production order for 2019. Our aim is to leverage on our

position as a leading technology provider in the global encryption market and

respond to an accelerated growth in demand.", Wollebekk concludes.

Hiddn will host an open presentation Friday 16 November 2018 at 08.00 (CET) at

Felix Conference Centre. The presentation will be broadcasted live

at www.hiddn.no and

on http://webtv.hegnar.no/presentation.php?webcastId=97451630

For further information, please contact:

Carl Espen Wollebekk, CEO, telephone: + 47 930 55 505 /e-mail: cew@hiddn.no

About Hiddn Solutions ASA

Hiddn Solutions ASA is listed on the Oslo Stock Exchange under the ticker HIDDN.

The company is offering impenetrable proprietary hardware-based authentication

and encryption products with a superior level of security as well as a wider

product suite addressing all market segments looking for solutions to ensure

that sensitive information stays confidential and unavailable to unauthorised

access. Based on Hiddn's unrivalled and proven position in the high-end

encryption market, Hiddn is implementing a strategy of adapting the proprietary

technology to the high-volume markets to take advantage of the growing global

security challenges and the arising regulatory requirements. Hiddn has

established a product offering that addresses all market segments from the high

-end security clients to the retail market, and established partnerships with

some of the most important sales and distribution partners in Europe. Hiddn sees

significant growth opportunities and rising demand from customers and is well on

its way to solidify its leading position in the growing market for secure data

storage.

For more information, please visit: www.hiddn.no