Q-Free ASA — Earnings Release 2014

Apr 30, 2014

Q-FREE RESULTS FOR THE FIRST QUARTER 2014

Q-FREE RESULTS FOR THE FIRST QUARTER 2014

Oslo/Trondheim, 30 April 2013: Q-Free reported 22 percent increase in

revenues to NOK 168 million in the first quarter 2014, reflecting

continued growth for Products and Services & Maintenance but lower

Projects revenues. Operating profit (EBIT) increased to NOK 1 million

from an operating loss of NOK 53 million in the first quarter 2013,

whereas pre-tax profit improved to NOK 2 million from a loss of NOK 55

million in the same period last year.

Order entry amounted to NOK 238 million in the first quarter, the

highest levels since the second quarter 2012. Order backlog increased to

NOK 448 million, an increase of NOK 69 million during the quarter. The

EMEA region accounted for approximately half of both revenue and order

intake in the quarter.

Gross profit for the period increased 16 percent to NOK 100 million.

Operating expenses declined to NOK 86 million. This was a reduction of

NOK 38 million from the first quarter last year, when the Income

Statement was charged with NOK 25 million related to a Profit

Improvement Program. The program was designed to reduce the annual cost

base by NOK 40 million and has full effect in 2014.

Phase 1 of the 'Q-Free Strategy and Collaboration Project' that was

initiated in January is completed. We will strengthen the regions - to

get closer to our customers, broaden our business scope to also include

smaller and medium sized projects - to build the pipeline and secure

business volume, and finally broaden our technology offering - to

address a larger part of the market.

Cash flow from operating activities improved to NOK 18 million in the

first quarter from a negative NOK 23 million in the same period last

year. Cash flow from investing activities amounted to NOK -63 million (

-19), with the change mainly reflecting strategic acquisitions. Overall,

this reduced the cash balance by NOK 45 million to NOK 227 million at

the end of the first quarter.

Q-free continues to see a large potential in the Road User Charging

(RUC) market, with opportunities in all the main regions in EMEA, the

Americas and Asia Pacific. The company also continues to strengthen its

business within Advanced Transportation Management Systems (ATMS), with

the acquisitions of TDC Systems in the UK in March and Traffic Design in

Slovenia in April. Q-Free will continue to seek complementary investment

opportunities to add to organic growth in the ATMS business going

forward.

Attachments: Presentation and report

For further information, please contact:

CEO Thomas Falck, cell: +47 468 00 767

CFO Roar Østbø, cell: +47 932 45 175

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

Road User Charging and Advanced Transportation Management Systems. The

company has approximately 350 employees in 17 countries and is

represented on all continents. The company's main offices are in

Trondheim, Norway. Q-Free is listed on Oslo Stock Exchange under the

ticker QFR.

www.q-free.com

Twitter: @Q-FreeASA