NRC Group — Interim / Quarterly Report 2010

Apr 29, 2010

REPORT FOR 1st QUARTER 2010

A CHALLENGING QUARTER

The company reported revenues of NOK 122 million in

the 1st quarter, compared with NOK 150 million for

the same quarter in 2009. EBITDA for the quarter was

minus NOK 7 million, compared with minus NOK 6

million for the 1st quarter of 2009. This corresponds

to an EBITDA margin of minus 5.6 per cent for the 1st

quarter of 2010, compared with minus 3.9 per cent for

the 1st quarter of 2009. The operating loss for the

quarter was NOK 28 million, compared with a loss of

NOK 26 million for the 1st quarter of 2009. The pre-

tax loss was NOK 39 million, compared with a loss of

NOK 36 million for the corresponding quarter in 2009.

The operating revenues for the respective segments

totalled NOK 106 million for Geo Engineering and NOK

16 million for Information Services. The comparative

figures for the 1st quarter of 2009 were NOK 135

million for Geo Engineering and NOK 15 million for

Information Services.

The first quarter has historically been the quarter

with the lowest creation of value. The company is

seeking to establish operations that are not so

exposed to fluctuations through establishing the sale

of its own databases. Sale of the same data to

multiple customers through different distribution

channels is a long-term investment that the company

expects will provide a good return over time. A

stronger focus on and the implementation of

partnership agreements, and building up our own sales

force, are expected to gradually strengthen our

ability to penetrate the market.

The demand for the company's contractual services for

which the public sector is the largest customer group

is marked by the continuing weak economy in a number

of countries in which we have a significant portion

of our operations. This has resulted in temporary

pressure on the prices in parts of our operations.

The company has decided to focus on services where

satisfactory margins can be achieved. This strategy

will have an impact on our revenue growth in 2010.

The reorganisation of our operations in Spain also

marked the quarter. This reorganisation was

implemented after an extensive investigation that was

conducted due to the identification of irregularities

in the accounting. The company has implemented

measures in consultation with the company's advisors

to ensure that there is no reoccurrence. The

extensive reorganisation will strengthen the

operations in Spain over time and increase the focus

on the competence that has been built up at our

office in Madrid.

For further information please contact the CEO, Mr.

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