NRC Group — Interim / Quarterly Report 2010

Aug 12, 2010

REPORT FOR 2nd QUARTER 2010

YET ANOTHER CHALLENGING QUARTER

The company posted revenues of NOK 184 million in the

2nd quarter, compared with NOK 225 million in the

same quarter in 2009. EBITDA for the quarter was NOK

14 million, compared with NOK 49 million for the

corresponding quarter in 2009. This corresponds to an

EBITDA margin of 7.8 per cent, compared with 22.0 per

cent in the 2nd quarter of 2009. The operating loss

for the quarter was NOK 7 million, compared to a

profit of NOK 28 million for the same period in 2009.

The operating revenues for the respective segments

totalled NOK 157 million for Geo Engineering and NOK

27 million for Information Services in the 2nd

quarter. The comparative figures for the 2nd quarter

2009 were NOK 192 million for Geo Engineering and NOK

33 million for Information Services.

The demand for the company's contractual services,

for which the public sector is the largest customer

group, has been marked by the continuing weak economy

in a number of countries in which we have a

significant portion of our operations in the 2nd

quarter as well. 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 a negative impact on our revenue growth for

Geo Engineering in 2010. As a result of the somewhat

weak macroeconomic environment, we have reduced our

workforce, which will in short term have a negative

impact on earnings, but will give us a healthy cost

base when the macroeconomic environment improves.

In the Information Services area the company has

reorganised and accelerated the build-up of its own

sales force during the quarter. In combination with

the implementation of more sales-oriented

partnerships, these measures are over time expected

to improve the company's ability to sell the same

data to multiple customers through different

distribution channels.

Revenues for the 1st half year were NOK 306 million,

compared with NOK 375 million for the same period in

2009. EBITDA for the 1st half year was NOK 8 million,

compared with NOK 44 million for the corresponding

period in 2009. This corresponds to an EBITDA margin

of 2.5 per cent, compared with 11.6 per cent in the

first half of 2009. The operating loss for the 1st

half year was NOK 35 million, compared with a profit

of NOK 1 million for the same period in 2009

For further information please contact the CEO, Dirk

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

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