Fingerprint Card — Earnings Release 2008

Jul 28, 2009

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PRESS RELEASE Gothenburg, February 18, 2009

Fingerprint Cards AB (publ), corporate identity no 556154-2381 Press release on Annual Accounts for the financial year 2008

Key events of the financial year:

• The income for the financial year totalled MSEK 27.5 (20.7) and for the fourth quarter MSEK 8.8 (2.2).
• Gross profit for the financial year amounted to MSEK 1.0 (-12.6). Gross profit was positive for the fourth quarter and amounted to MSEK 0.2 (-7.4).
• Net financial items amounted to MSEK 0.8 (1.3) and for the fourth quarter MSEK 0.1 (0.2).
• The loss for the financial year was MSEK 23.3 (- 34.2) and for the fourth quarter MSEK 5.5 (- 12.8).
• Net earnings per share was SEK 1.92 (- 2.82).
• Liquid funds at the close of the financial year amounted to MSEK 22.6.
• The Company´s swipe sensor technology chosen for biometric debit and credit cards.
• Orders from China worth MSEK 27 in total.
• New stock issue brought MSEK 13.7 net after issue costs.
• Order value as per 31 December amounted to MSEK 30.8.
• The Company´s financial goal, to achieve a breakeven point during the first half-year of 2009, is altered to read that the goal is to reach a break-even point some time during the second half-year of 2009.

Significant events after the expiry of the financial year:

Mr Lennart Carlson gave notice of the termination of his employment after 12 years as CEO.

For further details, please contact: Lennart Carlson, CEO Fingerprint Cards AB +46 31 60 78 20, investrel@fingerprint.se Fingerprint Cards AB, Box 2412, S-403 16 Gothenburg www.fingerprints.com

The Company´s business situation

By the close of 2008 a three year period of heavy investments in technology and production was completed. A new and updated processor ASIC has been developed, wafer production was moved to a new foundry, and a completely new product and production solution for the sensor component has been developed. At present the sensor component is the Company´s most important volume product. These investments were necessary for market participation and the Company could not have retained a competitive volume delivery position without the commitments successfully undertaken. Cost efficient production is only offered by highly specialised subcontractors and unless they can anticipate high volumes there is no interest in producing. The key for the Company to solve this problem was the volume orders, valued at MSEK 43, that were received from China early 2007. This has been followed by further orders worth MSEK 27 received during 2008.

It took a considerably longer time than planned to get the new production right for the sensor component and the process was also interrupted during the year at the subcontractor stage applying the protective coating to the silicon wafers, so causing a halt in deliveries of coated silicon to the packaging subcontractor. The net effect of the drawn out development work was that 93% of all sensors delivered during 2007 and 2008 came from the older and more costly production solution manufactured by subcontractors in Sweden and The Netherlands. Only in the fourth quarter did substantial volume production with the new solution get started in the Philippines by a highly specialized US subcontractor. At the end of 2008 production of the older solution had ended with enough stock held to support those few customers that have not yet adjusted their products to the new packaging solution.

Deliveries of sensors in the fourth quarter were made up by the older solution to 60% and by the newly developed solution to 40%. Even after the close down costs charged in the fourth quarter related to the winding up of the older production solution the sales margin for that quarter was positive, although modest, and this was also the case during the third quarter. For the year as a whole a negative gross profit margin amounting to MSEK 1 is shown. The sales prices and production costs that the Company is now working with implies that for the year 2009 the sales margin should rise gradually up to a fully 30% during the first half-year. The project targeted at further reducing production costs, and described in the section "Technology development and production" has the potential to raise the margin to 40% during the second half-year and this is the Company´s current goal. These development measures are not cost consuming but do require time to complete.

From the end of 2008 the Company´s foreign exchange exposure has been reduced. At all production stages for the sensor component - wafer (silicon), coating and packaging - the Company will henceforth be invoiced in US dollars and will invoice sales in the same currency. During the first three quarters the Company was faced with problems from the low value US Dollar sales while production costs met in SEK and EURO.

An important issue is any effect the ongoing worldwide economic recession might have on company sales. The Company´s largest market is China and, in cooperation with the Company´s reseller in China, Company sales personnel have recently met with the biggest customers to review their planning for 2009. The Company´s continued understanding is that these end customers for biometrics believe in strongly increasing volumes and in particular for the market segment concerning biometric products delivered to the Chinese banks. The country´s Prime Minister, Mr Wen Jiabao, stated recently, on the eve of the World Economic Forum in Davos, that he was optimistic and predicted an 8% GNP increase for 2009. China´s banking and financial system is solid and constitutes a strengthening factor for the country, he said. Based on the collective market information the Company has from China together with the planned developments of new geographical markets, the Company plans for considerably higher both production and sales turnover for 2009 compared to the previous year.

During late autumn of 2008 the Company carried through a new stock issue which brought MSEK 13.7 after issue costs. The new issue was taken up to 63% inspite of extremely poor financial market conditions. The motives for the new issue were threefold; to finance the increased need for working capital; to add to enlarged marketing and sales investments; and for the development of a special

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sensor aimed at the mobile phone market segment. As this new issue was not fully subscribed to the Company must take precautions with its working capital and, above all make sure that stock and trade debtor accounts are kept on a reasonable level. The mobile phone sensor development project will be carried through to the point that the complete technical platform will be validated from which a ready sensor may be completed in a relatively short time. This concluding stage, to bring about a ready commercial sensor, shall be financed by a customer or a strategic partner. Marketing and sales efforts to develop new geographical markets, such as India, will be carried through using already existing personnel resources.

The Company´s financial goal, to attain a breakeven point during the first half of 2009, has been amended to a breakeven point during the second half of the year. The simple reason for this is the project delay met in development of the new production solution for packaging of the sensor component. This is described in the technical part of this report. Concerning production, the rate of production increase must also be in line with planned improvements of the production yield, and production must moreover be in line with planned deliveries to the market. Production yield determines cost per produced unit which in turn has an effect on gross profit margin as deliveries are made and invoiced. The plan is to achieve gradually a sales margin of a full 30% during the first halfyear and successively a sales margin of up to 40% during the second half-year.

Company sales during the period

Sales in 2008 increased in value by 33% compared with 2007, and amounted to MSEK 27.5. The area sensor accounted for approximately 90% of the total sales value and close to 200 000 units of this sensor were delivered compared with approximately 130 000 the year before. The remaining part of the sales concerned biometric modules, processor ASICs and swipe sensors with matching ASICs all on wafer.

The main part of total sales is organised through regional resellers. With the addition of Canada the Company now has resellers in thirteen different countries. In regions where the Company is not represented sales are channelled directly to the customer. Examples of such regions having high priority in the search for new resellers are parts of South America and India. The Company´s most important reseller is since many years Hardware & Software Technologies Co. (HST), headquartered in Taiwan and with three regional sales and development branch offices within China.

During the year deliveries of the block order, worth MSEK 43 and received from HST in 2007, were completed and part deliveries of the order worth MSEK 12 received early in the third quarter 2008, were made. The most important volume products for the Company´s technology in the Chinese market are biometric logon products delivered to China´s banks. HST sells and delivers the Company´s technology to security companies developing these end products in which the biometric is integrated, and using the Company´s technology HST is the main supplier to the four largest of these security companies. The policy of the largest Chinese banks is that all personnel working with computers shall logon biometrically, and this policy is now spreading to regional banks indicating that this market segment probably has a big potential. Among other product developers in China, using the Company´s technology are developers of door locks, safes and safe boxes, biometric keys, USB memories along with products specially designed for China´s Post Office and defence industry.

Of the swipe sensor technology the Company delivered sensors and processor ASICs in wafer format along with matching software to card solutions developer CardLab which has produced prototype cards in which the complete biometric system is embedded. These fully functioning cards are designed as the debit and credit cards of the future and have been demonstrated to a potential customer. As a result of the attention brought by this project, the Company has also become involved in other card projects in both North America and the Far East delivering area sensor technology, where the intended applications are mainly access systems featuring biometric authentication of the user. The type of systems set up under product development comprise cards where the complete verification process takes place on board the card, and cards where part of the biometric processing is done in a card reader.

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During the fourth quarter deliveries of technology valued at MSEK 8.8 were made representing an increase of 300% against the same quarter in the previous year. Most of the deliveries concerned sensors that were delivered to the Chinese market. Other deliveries concerned a follow up order from a customer in Canada that has developed a bank application, carried through pilot tests and plans for serial production. A follow up delivery was also made to a customer in France for Point of Sales terminals. Deliveries of development kits increased notably and were made to new customers in Italy, Mexico, Poland, South Africa and the Czech Republic. Improved interest was also noted for the Company´s module containing the new sensor and processor ASIC thanks to its enhanced functionality making it interesting for developers of Time & Attendance systems. Further on during the fourth quarter the Company received a new order from HST in China valued at MSEK 15 for delivery after the turn of the year.

The order value as at 31 December 2008 amounted to MSEK 30.8. Orders are received in US dollars and the order value is translated to the Swedish Krona at the end of the reporting period.

Turnover and earnings

Consolidated net sales for the period January to December amounted to MSEK 27.5 (20.7) and for the fourth quarter MSEK 8.8 (2.2). The Group´s sales are in US dollars for which the exchange rate was lower in the three first quarters and higher in the fourth quarter compared with the same periods previous year. Adjusted for exchange rate the sales increase was 32 percent and for the fourth quarter the increase was 236 percent. The consolidated loss for the financial year amounted to MSEK – 23.3 (- 34.2) and for the fourth quarter – 5.5 (- 12.8).

Gross profit for the fourth quarter was positive, despite the close down costs charged the fourth quarter related to the winding up of the older production solution, and amounted to MSEK 0.2 (-7,4). The reason behind this was reduced production costs and a strengthened US dollar.

Net sales by the parent company for the financial year amounted to MSEK 27.5 (20.7) and for the fourth quarter 8.8 (2.2). The consolidated loss amounted to MSEK – 23.3 (- 34.2) and for the fourth quarter – 5.5 (-12.8).

Financial position

Equity, as of December 31, 2008, amounted to MSEK 58.1 (67.1). The consolidated equity/assets ratio was 84.3 % (90.7). Consolidated available liquid assets including current investments as at December 31, 2008, totaled MSEK 22.6 (33.8). Other current receivables amounted to MSEK 9.9 (5.6). The consolidated working capital amounted as at 31 December to MSEK 37.1(50.4).

The parent company's available liquid assets up to 31 December 2008, short term investments included, amounted to MSEK 22.6 (33.7). The on-going new share issue brought MSEK 13,7 after issue costs.

Fixed assets, capital expenditure and depreciation

During the financial year investments in equipment amounted to MSEK 0.1 (0.2) and development cost has been set up as an asset during the period with MSEK 7.7 (5.3). During the fourth quarter investments in equipment amounted to MSEK 0 (0) and development cost has been set up as an asset with MSEK 2.9 (1.1).

Development costs have been depreciated according to plan by 15 % and equipment was depreciated by 20% annually.

Personnel

At the close of the interim period the number of employees totaled thirteen (twelve), of whom none (none) were women.

Issue of share options to employees

At the Annual General Meeting held on May 31, 2007 it was decided to issue 370 000 share options to employees, out of which 180 000 share options have been subscribed for by the employees and 190 000 share options have been subscribed for by the Company´s subsidiary, Fingerprint Security Systems AB, for future transfer to new employees. The personnel cost for the share options held by the Company´s subsidiary will be accounted for when transfer to new employees takes place. The strike price was set at SEK 38 and subscription of shares shall take place starting 1 June 2010 and ending 30 November 2010. The share capital will be diluted by a maximum of 3.04 per cent and the votes by 2.49 per cent.

The personnel cost for the share options, as at December 31 2008, amounted to MSEK 0.5 (0.4). The equity has been increased by the same amount.

Technology development and production

Over the past year, the main part of the activity has been focused on the production of the Company's area sensor, as well as the development of new product and production solutions. Based on this effort, the Company launched a new packaging solution of the area sensor. The suppliers used in production of this new solution have extensive experience from similar projects and have been engaged early in the development phase, which will enable low cost production, high production quality and short lead times.

The main part of the production volume in 2008 was the old and well established, but not cost effective, packaging solution for the area sensor. After some delays production in limited volumes of the new packaging solution was started and the first deliveries to customers were made by the end of the third quarter. A number of technical problems related to production were solved and during the fourth quarter produced volumes were increased markedly as were deliveries to customers. The production yield has also gradually improved and the plan is to successively reach the set targets for both volume and yield during the first quarter of 2009.To ensure the highest quality in the deliveries and to optimise the production costs, the Company has had an intense dialogue with the customers and suppliers regarding details of the quality requirements and the corresponding production processes, which is an activity that will continue in 2009.

In addition to the extensive project aimed at developing the new packaging solution for the area sensor, which is now in the final stage, the Company is continuously investigating new ways to improve the production costs, such as incorporating new suppliers and new production methods into the supply chain. Two such projects, which are expected to further lower the production cost of the Company's area sensor, were launched in 2008. The first trials were carried out at the end of 2008, and the performance will be analysed in detail during the first quarter of 2009. The implementations of the potential cost reductions in production are expected to be swift, which may allow an improved sales margin during the second half of 2009.

The production of the old packaging solution for the area sensor has effectively been closed down, following reducing use during last year. The production rate was adapted to the demand, such that only a minor stock on hand remains. This will be needed to support a few existing applications over a

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transition period where customers have not yet had the opportunity to switch to the new packaging solution.

The Company's new system module, FPC-AM2, incorporates the sensor, processor, and all biometric software functionality. This was launched at the beginning of the year. The module is based on the newly developed processor ASIC FPC2020, is able to handle up to 500 users in an embedded system. The increased functionality of the module opens up new application areas and provides a straightforward path for customers to evaluate and incorporate the Company's technology into their own products.

The development project aimed at building the next generation sensor technology has progressed during the period. An improved pixel sensor array will deliver the targeted customer benefits for this project. These are higher resolution; dramatically lower power consumption; and scalability to varying sensor sizes and resolutions which will suit many different customer applications requirements. The design has been completed and preparations are in process for validating the new technology on live silicon chips.

One of the projects with the highest visibility in the biometric market is that by CardLab to develop a secure card in the format of a credit card, primarily aimed at the banking sector. The card is based on the Company's sensor and processor ASIC which runs the fingerprint matching software developed by the Company to securely identify the user. The Company has taken an active part in the project and has made adjustments to existing solutions to better fit this special application. To date a number of prototypes have been manufactured and demonstrated to customers, with positive results.

Market development

Market

The positive market aspects of 2008 can be captured by three key driving factors, evident during the whole year. Major and deep commitments to biometric technologies continued in public and business life; biometric market restructuring continued to indicate economic optimism and strategic strengthening; and the risks to identity and data in a world of personal identity without biometrics continued to cause serious concerns.

Market scale

There was widespread global market concern about an economic downturn but leading market commentators were more optimistic about biometrics markets because much of these are driven by security and regulatory compliance requirements. Frost & Sullivan announced that biometric spending in the US border control market will go from USD130 Million in 2007 to USD 725 Million by 2014. Other analysts around the mid-year point were settled on global growth estimates for the biometrics market of between 15 and 20% CAGR (Compound Annual Growth Rate) for the period 2007 to 2012.

The main reasons for confidence in this prediction were strongly established commitments in both public and business sectors. The procurement cycle of major public sector programs has been growing continually since 2007, expanding in areas such as border control and electronic passports, and there has been significant civil government movement towards the deeper integration of biometrics. In the UK and in the US, protection against identity theft and impersonation took a step closer with proposals to use government biometric identity checking services in many aspects of government business.

The business sector too has committed to a deeper investment in the changes that will make biometrics a routine part of daily life for many. Commercial giants such as Sun Microsystems increased their involvement in biometric Identity Management. By the end of the year Microsoft announced that biometrics had penetrated to the heart of its corporate development plans and the operating system to replace Windows™ Vista would include the tight integration of a Microsoft

Windows Biometric Framework, delivering many integration benefits to the end user and a faster development path to more than three million affiliated software developers worldwide.

Market structure

Confidence in market opportunities has driven a trend in market positioning. This began in 2007 with a series of acquisitions, but was strongly evident on the Biometric Solutions side in 2008 where leaders in government systems provision such as Sagem Morpho (France) and L1 Identity (USA) moved to acquire competing major players to consolidate market presence and their customer base. By the year end it could be noted that the biometric market had developed three quite different areas of business activity. At the top level, closest to the big government projects sit the systems integrators, followed by emerging large players in Identification Solutions, and with a third grouping of key technology suppliers, such as Fingerprint Cards, providing innovative and proven technology to a widening range of solutions.

Geography

Driving the market dynamics during the year were specific channels and market drivers such as national or regional regulation, requiring that identity be more carefully managed. The market in China, for financial services security in particular, continued to be a strong growth market with its own very particular requirements for biometric identity authentication. In such segments there are clear problems to solve using fingerprint biometrics for reliable logon to payment systems as part of welldesigned security solutions for this segment.

Unlike the global IT market, the route to this market is a combination of regional reseller, knowing the technology well and able to support this, and a local developer or integrator with experience of the customer and customer's problem. The Chinese market for biometrics was particularly strong for fingerprint technology, and is reported to be more than ninety percent fingerprint, with an overall estimation of worth around 800M USD annually. In other large potential markets, such as India, it was clear during the year that a low cost, environmentally reliable fingerprint technology is a potential success factor as the distributor and developer channels in such countries begin to build and market solutions for biometrics.

Electronic Product segmentation

There are several reasons why biometrics is well suited to electronic products, with capacitive fingerprint technology taking the lead over other biometrics for accuracy and reliability. The two main driving factors continued to be the convenience of having a biometric in place of a password, and of having some means of protecting sensitive or private data. The inconvenience of passwords continued to increase during 2008 as in previous years, and there were many well publicised examples during the year where sensitive data was exposed owing to a lack of reliable access control, and of widely available products to support this for data storage.

Even with as many as one in four laptop computers sold featuring biometric fingerprint sensors, the market for USB and memory sticks featuring the technology also continued to grow and show its need for affordable secure solutions. The arrival late in the year of Microsoft, and the announcement of an operating system that will make the overall use of biometric applications easier in the Windows environment was a welcome one. Apple too has put biometrics within its basic software suite, so that by the end of 2008 all large computer and operating system software vendors were driving with biometrics.

Significant events after the expiry of the financial year

On 2 February 2009 it was announced that Mr Lennart Carlson had given notice of the termination of his employment after 12 years as the Company´s CEO. Mr Carlson has a notice time period of one year and will remain in his post until a new CEO has been appointed. Company is now searching for a new CEO, preferably a strongly sales and market oriented person, ideally with experience from the electronic and/or semiconductor industry.

Deliveries of a few thousand sensors and as many processor ASICs were made to the Company´s reseller in South Korea. The end customers manufacture biometric door locks for offices, dwellings and mobile homes.

Essential risk and uncertainty factors

Beyond the usual business risks the following risk areas could be identified for the Company and its business situation.

Dependence on key personnel

Biometrics is still a relatively new area, showing high growth and requiring high technical knowledge and skill from employed personnel. The Company has a number of key persons important to the successful development of Fingerprint Cards´ operations. Should such key persons leave Fingerprint Cards it could, at least in the short term, have a negative impact on the operations. A number of employees possess unique knowledge of the Company´s technology and have a long experience of its business. A loss of one or several of such key employees could for a transition period disturb operations. Replacing highly qualified members of the staff could take considerable time and could be costly.

Furthermore, recruiting new personnel that can be successfully integrated into the organisation is important for Fingerprint Cards´ future development. There is no guarantee that Fingerprint Cards will manage to recruit or keep personnel that are essential for running and developing its operations and this could bring negative consequences for the Company´s business, results and financial position.

The present CEO, Mr Lennart Carlson, has a unique knowledge of the Company and its market. He has, after 12 years as CEO, decided to leave his position and a new CEO is now being recruited. The appointment of a new leader is important for the Company´s future and must be carried through with high priority. Should such a process be drawn-out it could have a negative effect on the Company´s operations. This risk has however been reduced since Mr Carlson remains in his position as CEO for the present and will stay with the Company for the 12 termination months.

Loss of larger customers

A large part of the Company sales goes to the Chinese market where the Company has an established reseller who has built up a strong position for the Company´s technology during a long period. A loss of such an important reseller could incur a severe disruption of the Company´s operations.

Suppliers

Fingerprint Cards has no production of its own. To be able to manufacture, sell and deliver products the Company depends on subcontractors and that these suppliers deliver contracted volumes, at the right time and to the specified quality. Faulty or unforthcoming deliveries from the Company´s suppliers can lead to delayed deliveries from Fingerprint Cards to its customers, or that such deliveries contain faulty products and this could have negative effects on the Company´s operations, results or its financial position.

The Company´s production of components takes place at subcontractors. Such production is both planned and ordered long in advance, up to six months before delivery is made. Binding orders with delivery plans from customers are not generally received that long in advance. Unsuccessful

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prognoses concerning sales and deliveries to customers can lead to overly large stock accumulation that could cause the Company liquidity problems.

Essential development projects

The Company has run for some time an essential development project aimed at developing a new packaging solution for the area sensor; one designed for very high production volumes, and with a radically reduced production cost. This project is run in collaboration with a highly qualified subcontractor with extensive experience of this kind of production. Production commenced in the third quarter of 2008 when also minor deliveries to customers were made. A number of production issues were worked out during the fourth quarter and the produced volumes and deliveries to customers were increased significantly. Consequently, the risk associated with severe and unforeseen disruption in the industrialisation phase should have decreased considerably; However, as volume production has only been running for a short period, the risks cannot be omitted. Having a well-run and smooth production is essential for the Company's future competitiveness and extensive disruptions in this process would have a negative impact on the Company's business situation.

Need for additional capital

It cannot be excluded that further capital infusion might be needed to finance Fingerprint Cards´ operation and continued expansion. This might have to be done in a less favourable market situation and at terms that are less favourable when compared to the present situation. External financing under such conditions could bring negative effects on Fingerprint Cards´ operations or on the shareholders´ rights. Should the Company obtain financing through issue of new shares or other share related instruments this could cause dilution effects for the Company´s shareholders while debt-financing, should such be available to the Company, could involve restricting terms which could limit the Company´s flexibility. It cannot be guaranteed that capital can be raised when a need arises or on terms that are acceptable to the Company.

Accounting principles

This interim report was prepared in accordance with IAS 34, Interim Financial Reporting. The consolidated financial statements are made up in accordance with the International Financial Reporting Standards, IFRS. Accounting principles and calculation methods remain unchanged from those applied in the 2007 Annual Report. The Parent Company applies the accounting and valuation principles used in the last Annual Report. For further details see note 1 in the Fingerprint Cards AB´s Annual Report 2007.

Future reporting dates

First quarter interim report January – March, April 29, 2009 The 2008 Annual Report will be published in April and will be available at the Company offices and homepage, with effect from April 24, 2009 The AGM is planned for Thursday, May 14, 2009 at 17.30 in Gothenburg.

Gothenburg, February 18, 2009 Fingerprint Cards AB (publ)

The Board

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Review Report

Introduction

We have reviewed the press release on Annual Accounts of Fingerprint Cards AB (publ), corporate identity number 556154-2381 for the period 1 January 2008 – 31 December 2008. The board of directors and the managing director are responsible for preparing and presenting this press release on Annual Accounts in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express an opinion on this press release on Annual Accounts based on our review.

Scope of the review

We have conducted our review in accordance with Standard for review SÖG 2410 – Review of financial interim report information performed by the auditor of the company – issued by FAR. A review consists of inquiries in the first place to persons responsible for financial and accounting issues, to perform an analytical review and take other review procedures. A review is significantly less in scope than an audit in accordance with generally accepted auditing standards and good auditing practice in Sweden. The review procedures made at a review do not secure that we are aware of all significant circumstances, which could have been identified if an audit had been performed. Therefore, the expressed conclusion based on a review does not have the security, which an expressed conclusion based on an audit has.

Conclusion

During our review we have not identified any circumstances, which indicate that the interim report is not in all in compliance with the requirements of IAS 34 and the Annual Accounts Act.

Gothenburg, February 18, 2008 KPMG AB

Jan Malm Authorized Public Accountant

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STATEMENTS OF INCOME, THE GROUP	Oct - Dec	Oct - Dec	Jan - Dec	Jan - Dec
(MSEK)	2008	2007	2008	2007
Operating income
Net sales	8.8	2.2	27.5	20.7
Cost of goods sold	-8.6	-9.6	-28.5	-33.3
Gross margin	0.2	-7.4	-1.0	-12.6
Operating expenses
Administrative expenses	-1.4	-1.6	-6.6	-7.6
Research and development costs	-3.0	-2.5	-11.7	-10.3
Selling expenses	-1.2	-1.5	-4.8	-5.0
Operating profit/loss	-5.4	-13.0	-24.1	-35.5
Net financial items	-0.1	0.2	0.8	1.3
Net profit/loss for the period	-5.5	-12.8	-23.3	-34.2
BALANCE SHEETS THE GROUP			31 Dec	31 Dec
(MSEK)			2008	2007
Assets
Intangible assets			20.8	16.4
Tangible assets			0.3	0.3
Total fixed assets			21.1	16.7
Inventory			15.4	18.0
Accounts receivables - trade			8.4	4.0
Current receivables			1.5	1.6
Current investments			0.0	28.7
Cash and bank deposits			22.6	5.1
Total current assets			47.9	57.3
Total assets			69.0	74.0
Equity and liabilities
Equity			58.1	67.1
Current liabilities, non-interest bearing			10.8 69.0	6.9 74.0
Total equity and assets
CHANGE IN EQUITY, THE GROUP			Jan - Dec	Jan - Dec
(MSEK)			2008	2007
Opening equity			67.2	100.9
Share options to employees			0.5	0.4
On-going new share issue			13.7	-
Net profit/loss for the period			-23.3	-34.2
Closing equity			58.1	67.1
CASH FLOW ANALYSES, THE GROUP			Jan - Dec	Jan - Dec
(MSEK)			2008	2007
Earnings for the period			-24.1	-35.5
Adjustments for items not included in the cash flow			2.1	10.7
Change of inventory			4.6	-8.5
Change in current receivables			-3.6	2.0
Change in current liabilities			3.9	-0.6
Cash flow from current operations			-17.1	-31.9
Cash flow from investment operations			-7.8	-5.5
Cash flow from financial operations			13.7	-

Change in liquid funds incl. curr. investments -11.2 -37.4

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KEY RATIOS, THE GROUP	Oct - Dec 2008	Oct - Dec 2007	Jan - Dec 2008	Jan - Dec 2007
Net earnings per share (SEK)	-0.45	-1.05	-1.92	-2.82
Net earnings per share after full dilution (SEK)	-0.45	-1.05	-1.92	-2.82
Equity per share (SEK)			4.78	5.52
Equity per share after full dilution (SEK)			4.64	5.36
Equity/assets ratio (%)			84.3	90.7
No of shares avarage (thousands)			12,153	12,153
No. of shares after full dilution average (thousands)			12,369	12,369
No. of shares (thousands)			12,153	12,153
No. of shares after full dilution (thousands)			12,523	12,523
STATEMENTS OF INCOME, THE PARENT COMPANY			Jan-dec	Jan-dec
(MSEK)			2008	2007
Operating income
Net sales			27.5	20.7
Cost of goods sold			-28.5	-33.3
Gross margin			-1.0	-12.6
Operating expenses
Administrative expenses			-6.6	-7.6
Research and development costs			-11.7	-10.3
Selling expenses			-4.8	-5.0
Operating profit/loss			-24.1	-35.5
Net financial items			0.8	1.3
Net profit/loss for the period			-23.3	-34.2
BALANCE SHEETS, THE PARENT COMPANY			31 Dec 2008	31 Dec 2007
(MSEK) Assets
Intangible assets			20.8	16.4
Tangible assets			0.3	0.3
Total fixed assets			21.1	16.7
Inventory			15.4	18.0
Accounts receivables - trade			8.4	4.0
Current receivables			1.5	1.5
Current investments			0.0	28.7
Cash and bank deposits			22.6	5.0
Total current assets			47.9	57.2
Total assets			69.0	73.9
Equity and liabilities
Equity			57.6	66.6
Current liabilities, non-interest bearing			11.4	7.3
Total equity and assets			69.0	73.9