Q-Free ASA — Earnings Release 2014

Aug 14, 2014

Q-FREE SECOND QUARTER AND FIRST HALF YEAR 2014 RESULTS

Q-FREE SECOND QUARTER AND FIRST HALF YEAR 2014 RESULTS

Q-Free reported revenues of NOK 187 million for the second quarter 2014,

an increase of 26 percent from the same quarter last year. Operating

profit (EBITDA) improved to NOK 20.9 million from NOK 16.1 million,

EBIT improved to NOK 2.2 million from NOK 0.3 million, whereas pretax

profit improved to NOK 0.3 million from a loss of NOK 2.3 million in the

second quarter 2013.

The revenue composition has over the last two years reflected a

substantial increase in product sales and lower project revenues. This

trend continued in the second quarter 2014, with product sales reaching

the highest level since the fourth quarter 2011.

For the first half year 2014, revenues increased 24 percent to NOK 355

million (286). EBITDA was NOK 38.6 million (-22), EBIT was NOK 3.1

million (-53), and pretax profit was NOK 1.8 million (-57).

Q-Free has taken steps to improve the cost position and strengthen the

platform for future revenue generation. The Profit Improvement Program

initiated last year has significantly reduced the fixed cost base with

limited adverse effects on operational capacity. In addition, Q-Free in

January 2014 initiated an internal project to increase customer focus,

increase internal cooperation and efficiency, generate more leads in the

small and mid-sized segment of the Road User Charging market, and

generally broaden the scope of business. This has resulted in

organisational changes that together with the announced acquisitions

will enable Q-Free to provide a broader portfolio of products and value

added services to its customers, and at the same time strengthen Q

-Free's position as an industry leader. Going forward, Q-Free will focus

on realising synergies within the Group and on growing the business

further, both with organic growth as well as add-on acquisitions.

The Road User Charging and Advanced Transportation Management Systems

markets represent a megatrend driven by market demand for infrastructure

financing, environmentally friendly solutions, congestion management and

on automation of manual solutions. Q-Free continues to see a positive

long-term outlook, with opportunities both in the traditional Road User

Charging market and in the market for Advanced Transportation Management

Systems.

Enclosed: Q2-2014 report and presentation

For further information, please contact:

CEO Thomas Falck, cell: +47 468 00 767

CFO Roar Østbø, cell: +47 932 45 175

About Q-Free:

Q-Free is a leading global supplier of products and solutions within

Road User Charging and Advanced Transportation Management Systems. The Q

-Free Group will have approximately 430 employees with offices in 17

countries and presence on all continents after the closing of the Open

Roads transaction. The Q-Free head office is in Trondheim, Norway. Q

-Free is listed on Oslo Stock Exchange under the ticker QFR.

www.q-free.com

Twitter: @Q-FreeASA