NRC Group — Interim / Quarterly Report 2009

Feb 26, 2010

REPORT FOR 4th QUARTER 2009

Weaker revenue and profit due to significant

adjustments in the financial accounts in Spain

Irregularities were identified in connection with the

final audit of the group's operations in Spain. These

irregularities have affected the company's revenue in

2008 and 2009, and subsequently led to additional

adjustments to the valuation of a number of the items

on the Spanish company's balance sheet. This has

resulted in significant adjustments to both the

quarterly and annual accounts.

The company reported revenue of NOK 159 million in

the 4th quarter, compared with NOK 219 million for

the same quarter in 2008. EBITDA for the quarter was

NOK 23 million, compared with NOK 33 million for the

4th quarter of 2008. This corresponds to an EBITDA

margin of 14.4 per cent for the 4th quarter of 2009,

compared with 14.9 per cent for the 4th quarter of

2008. The operating profit for the quarter was NOK -

59 million, compared with NOK 8 million for the 4th

quarter of 2008. This includes NOK 44 million in

write-down of goodwill in Spain together with NOK 6

million in provision for future loss of intangible

assets in Spain.

The operating revenues for the respective segments

was NOK 123 million for Geo Engineering and NOK 37

million for Information Services in the 4th quarter.

The comparable figures for the 4th quarter of 2008

were NOK 170 million for Geo Engineering and NOK 49

million for Information services.

For the full year 2009, the company delivered

revenues of NOK 737 million, compared with NOK 867

million in 2008. EBITDA for 2009 was NOK 92 million,

compared with NOK 155 million in 2008. This

corresponds to an EBITDA margin of 12.5 per cent in

2009, compared with 17.9 per cent in 2008.

The operating revenue for the respective segments was

NOK 618 million for Geo Engineering and NOK 119

million for Information Services in 2009. The

comparable figures for 2008 were NOK 656 million for

Geo Engineering and NOK 211 million for Information

services.

The adjustments in the group's accounts related to

Spain at EBITDA level, amounts to NOK 41 million for

2008 and NOK 29 million for 2009.

The board of directors of Blom ASA has appointed an

investigation-committee headed by PwC Forensic

Services in Madrid. The managing director of the

Spanish subsidiary has with immediate effect resigned

his position.

In the short-term perspective, the Blom has faced

challenges in the market that have entailed revenues

and margins that are lower than budgeted for the

year. This can also affect the first quarter of 2010,

but it is not expected to have an impact on the long-

term creation of value that is taking place within

the company's operative activities.

Blom has completed the development of its new online

distribution channel BlomURBEX, which enables us to

give customers immediate access to the company's

databases. The company is confident that this will

form a foundation for good earnings over time through

licenses-based revenue streams.

Blom has entered into strategically important

cooperation agreements that will strengthen the

company as a supplier of services to major

international companies and the respective local

markets. Blom will gain competence through such

cooperation, and it will improve our access to

markets at the same time. Blom will continue its

efforts to develop existing agreements and seek the

establishment of new agreements.

For further information please contact the

CEO, Mr. Dirk Blaauw, on tel. +47 22 13 19 20 or

CFO Lars Bakklund on tel. +47 22 13 19 34.