Techstep ASA — Interim / Quarterly Report 2014

Nov 4, 2014

QUARTERLY REPORT

Q3 2014

Contents

Q3 Quick summary	2
Birdstep Technology ASA Interim Report	3
CEO Update	4
Business Focus	7
Highlights / Milestones	9
Market Outlook	10
Result of Operations	12
Cash Flow	13
Financial Statements	14
Notes	19
Financial Calendar	21

Positive EBITDA

Expansion in Asia

Birdstep opened a new Sales Offi ce in Asia to build and expand in the region.

Awards

Birdstep was part of the winning solution in Wireless Broadband Alliance´s award for "Best Next Generation Wi-Fi Device/Application 2014" and shortlisted for the Broadband Infovision Awards in the category: "Best Customer Experience Innovation"

Birdstep´s Credential Server was commercially launched with a Tier 1 mobile operator and the company launched phase one of its fi rst customer win in Asia

from Tier 1 European Operators proves customer satisfaction

Birdstep Technology ASA Interim Report

JULY - SEPTEMBER 2014

• Revenue was NOK 17.8 (16.5) million, representing an increase of 7.9% over the same period last year.

• EBITDA ended at NOK 0.24 (-1.9) million, representing a decreased loss of NOK 2.1 million over the same period last year.

• Continuing operating earnings per share amounted to NOK -0.01 (-0.04).

• Total net cash fl ow amounted to NOK 1.7 (-5.2) million.

• Cash balance was NOK 16.9 (1.8) million.

JANUARY – SEPTEMBER 2014

• Revenue was NOK 56.9 (52.0) million, representing an increase of 9.4% over the same period last year.

• EBITDA ended at NOK -1.4 (-0.82) million, representing an increased loss of NOK 0.6 million over the same period last year.

• Continuing operating earnings per share amounted to NOK -0.06 (-0.08).

• Total net cash fl ow amounted to NOK -5.5 (-15.2) million.

CEO Update

Our third quarter revenue was again mainly derived from our Smart Mobile Data products. The growth in the third quarter, relative to the same period last year, remains slower due to two new Asian projects being delayed due to their internal processes. Nevertheless, we have been growing existing customer projects either in breadth or into new franchises.

As described in our latest report, our pipeline and rate of deal fl ow continues to increase, mostly in Asia, and I am delighted to inform that we now have an offi ce and sales representation there ready to meet the demands from this new focus market.

Our third quarter revenue was again mainly derived from our Smart Mobile Data products. The growth in the third quarter, relative to the same period last year, remains slower due to two new Asian projects being delayed due to their internal processes. Nevertheless, we have been growing existing customer projects, both in breadth and new franchises.

We are very excited to see mobile operators in Asia becoming more aggressive in their use of Wi-Fi offl oad strategies, with several trialling Birdstep. The Asia Pacifi c region has become the fastest

growing telecom market in the world, accounting for more than 50% of mobile users as well as internet users globally. However, this rapid growth has implications as Asia was and still has predominantly a 2G/2.5G subscriber base. Hence the growth in use of internet through mobile devices is causing a massive demand for effi cient deployment and availability of data services. Given the geographic diversity and size of various Asian countries the network build-out costs to support the increasing demand for data services is immense. Wireless operators are seeking effi cient ways to optimize the costs of the build-out while at the same time remaining cognizant of the need to ensure a superior Quality of Experience (QoE) to its subscribers towards retention and acquisition. To overcome these challenges Wi-Fi networks are now critical to most operators' technology landscape. Innovative approaches and solutions to address these challenges for the operators has begun to result in large scale opportunities in the region. This, combined with new sales personnel on site and an offi ce in the area, has allowed Birdstep to assume a critical position in the technology landscape of the wireless operators in the region.

While traffi c growth remains the single biggest driver of data offl oad for North American mobile operators, the emphasis has changed subtly from shunting data to Wi-Fi, to selecting the best available network through intelligent application of real time analytics and ensuring Experience Continuity. I believe that the role of Birdstep's actionable EasyAnalytics and Intelligent Network Selection will be key in delivering Experience Continuity to the North American mobile operators' end users.

Although Europe continues to be a challenging market, we received license renewal orders over the quarter from fi ve Tier 1 European operators, confi rming our customers' satisfaction with Birdstep and our products.

In the quarter we also continued to roll out large volumes of EasySmart clients to our existing customers globally.

In the quarter we also continued to roll out large volumes of EasySmart clients to our existing customers globally.

Signifi cant milestones in Q3 included two commercial launches of strategic importance:

• Birdstep´s Credential Server was launched with a Tier 1 mobile operator. With this new solution the mobile operator has the perfect tool to automate user provisioning, manage multiple user account instances, simplify a multi partner strategy and signifi cantly increase the success rate of Wi-Fi offl oad. This commercial launch allows Birdstep to move beyond the data bearer and control planes and move into the services plane.

• Together with a multinational mobile & Wi-Fi solutions provider we launched phase one of our fi rst customer win in the Asian market for a large device manufacturer. The Wi-Fi connection management service simplifi es consumer connectivity for Wi-Fi-only devices by enabling seamless and automatic access to more than 100,000 hotspots in Indonesia for selected OEM devices.

From September 8 to 11, I attended the CTIA event in the USA, where we had several constructive meetings with key customers, potential customers, media and industry analysts. Many of them showed great interest in our innovation of the industry's fi rst Always Smartest Connected (ASC) solutions and also in the new markets we are exploring. The Connected Car services market alone is expected to deliver revenues of more than USD 16.9 billion for mobile operators by 2018 as it continues to grow at an expected CAGR of 25% over the next fi ve years. According to the leading research fi rm Infonetics, this rate of growth is 21 times the growth rate expected on the mobile operator's traditional voice and data revenues. So even though we are continuing to focus strongly on our core markets, an important part of our strategy is to also identify new markets that we can take our existing product portfolio into. I believe that Connected Car can become one of the markets where we can maximize our investments into new products and services over the next 2 to 3 years.

In closing, we are operating in a transforming market, and we will continue to evolve through investments in both our core business as well as in new and targeted areas. Through our technology and market leadership we are well positioned to continue to be a strategic partner to our customers as they move to capture new market opportunities.

I look forward to updating you again next quarter.

Lonnie Schilling Chief Executive Offi cer

Business Focus

Birdstep's Smart Mobile Data solutions continues to gain attention in Asia Pacifi c

This quarter the company continued to roll out large volumes of EasySmart clients to our existing customers globally. We received renewal orders for licenses, service & maintenance and hosting, which will allow the operators cost savings through data off load and improved customer experience.

Birdstep commercially launched its new solution, the Credential Server, with a Tier 1 mobile operator. With this fi rst deployment Birdstep is broadening its presence within its customers as it places the company in the center of all activities; both within the operator´s own carrier Wi-Fi as well as in partner Wi-Fi.

In the quarter, together with a multinational mobile & Wi-Fi solutions provider, the company launched phase one of its fi rst customer win in Asia for a large device manufacturer. This deployment is strategically important as it proves that Birdstep´s strategy for the Asian/Pacifi c market is taking off. This solution also won Wireless Broadband Alliance´s (WBA) award for "Best Next Generation Wi-Fi Device/ Application 2014". With many ongoing trials, a new onsite sales offi ce and sales representatives in the area the company is confi dent to become an even stronger player in the Asia/Pacifi c market.

In the quarter Birdstep commercially launched phase 2 of its solution with HP that was announced in September 2013. The company also received license renewal orders from fi ve Tier 1 European operators, which confi rms the customers' satisfaction with Birdstep and its products.

For Secure Mobility the company received an extension order for Birdstep's SafeMove Mobile VPN from UK Power Networks (UKPN), a utility company in UK. With this extension order SafeMove will be used by UKPN's entire fi eld engineering force once their new ruggedized Windows 8.1 tablets is rolled-out. The roll-out is set to start in Q4 of this year. The company also closed a strategically important deal with a company within the defense industry for its secure Android solutions.

Birdstep continued its focus on broadening the global customer base for its Smart Mobile Data solutions by sponsoring and speaking at CTIA during Super Mobility Week in Las Vegas, Telematics Summit in Berlin and Level 3 in London. The company also gained interest from the industry with its webinar "Experience Continuity – The Key Enabler For Connected Cars", held together with Caroline Gabriel, Rethink Research and The Mobile Network. In conjunction with the webinar the new Whitepaper "Experience Continuity - The Key Enabler for Connected Cars" was released.

CEO Lonnie Schilling held meetings with Shareholders and Analysts in Oslo and introduced Birdstep at the DnB TMT Opportunity Conference in September.

Highlights / Milestones

• Birdstep´s Credential Server was commercially launched with a Tier 1 mobile operator.

• Together with a multinational mobile & Wi-Fi solutions provider the company launched phase 1 of its fi rst customer win in the Asian market for a large device manufacturer. Phase 2 will now commence. This solution also won Wireless Broadband Alliance´s (WBA) award for "Best Next Generation Wi-Fi Device/ Application 2014".

• The company received license renewal orders from 5 Tier 1 European operators, which confi rms the customers' satisfaction with Birdstep and its products.

• In the quarter Birdstep commercially launched phase 2 of its solution with HP that was announced in September 2013. Phase 3 will now commence.

• To meet the market demands Birdstep opened a new offi ce and hired sales personnel in Asia.

• The company received recognition and attention by attending and hosting events around the world during the quarter: CTIA in Las Vegas, Telematics Summit in Berlin and Level 3 in London.

• The company held a webinar "Experience Continuity – The Key Enabler For Connected Cars", together with Caroline Gabriel, Rethink Research and The Mobile Network.

• The new Whitepaper "Experience Continuity - The Key Enabler for Connected Cars" was released.

• CEO Lonnie Schilling held meetings with Shareholders and Analysts in Oslo and introduced Birdstep at the DnB TMT Opportunity Conference in September.

• Birdstep was shortlisted for the Broadband Infovision Awards in the category: Best Customer Experience Innovation.

Market Outlook

Until recently, Wi-Fi Offl oad has been an industry topic in its own right. Projected mobile data traffi c growth has been a key motivator for many earnest projects aiming to avoid the imminent crunch.

However, our latest customer wins and ongoing trials have validated our key business assumption that Wi-Fi Offl oad based on traffi c volume growth alone, is just a specifi c use-case of the wider Always Smartest Connected (ASC) market. ASC has now become a well-recognized goal within the telecom market and Birdstep has, as a pioneer, actively been promoting its own unique "Experience Continuity" concept for over a year.

Mobile operators are increasingly looking to gain a better real-time view of their networks' Quality of Service (QoS) characteristics in order to understand true customer experience. Service providers are furthermore looking to achieve this for both the cellular and Wi-Fi networks within a single project, using a single set of tools. As commoditization of access continues to grow in mature markets, the mobile operator's strategic goals are now shifting to create access levels that are unambiguous and thus allow them to focus on value added service layers. Lessons from early trials have proven that the infrastructure's agility is important but suffi cient: the right business rules and network policies are paramount to ASC project success.

Looking ahead, network Quality-of-Service data collected in real-time from smartphone client deployments will become critical for mobile operators to compete effectively. Birdstep's EasySmart software client fullfi ls this role and enables "Policy-on-the-Device" to determine whether cellular or Wi-Fi provides the best bearer service to a subscriber in any given situation.

It's no longer only about the wholesale offl oad of data to Wi-Fi. It is increasingly becoming important to the operators' business models to deliver Experience Continuity, which can only be achieved using Always Smartest Connected.

Market research validates this as the Heterogeneous Network (HetNet) infrastructure is expected to carry more than 70% of all mobile network data traffi c by 2018. This will account for USD 380 Billion in mobile data service revenue. Birdstep's Intelligent Network Selection and Always-Smartest-Connected (ASC) solutions, which was launched in the quarter, provides the central intelligence within such a HetNet environment. As mobile demand for data exceeds all expectations, we believe that HetNet architecture is the only way forward.

According to Cisco´s forecast, released in early 2014, monthly global mobile data traffi c will surpass 15 exabytes by 2018 and by the end of 2014, the number of mobile-connected devices will exceed the number of people on earth. The market is transforming and we feel confi dent as our solutions are set to become relevant to an even wider audience like for example Cable Multi System Operators (MSO), Original Equipment Manufacturers (OEM's), the Connected Car market and even service operators that provide Over-The-Top (OTT) solutions.

Mobile operators see the need to very signifi cantly increase the data capacity of all areas of the network while also reducing the cost as cost-perbit rates are falling. After looking at solutions purely in the network and others just on devices, mobile operators are coming to realize that the most cost-effective way to deploy a truly intelligent ASC solution is to combine both.

Result of Operations

Third quarter

Third quarter revenue was NOK 17.8 (16.5) million, which represents an increase in revenue of 7.9% over the same quarter last year. Third quarter revenue continues to follow the same pattern compared to the same quarter last year by being largely attributed to Smart Mobile Data.

Salaries and wages were NOK 11.6 (11.8) million. The decrease in salaries and wages compared to the same quarter last year is due to an increase of capitalized development cost. The number of employees ending as at 30.09.2014 was 64 (62).

Other operating expenses for the quarter were NOK 4.7 (5.2) million.

As a result of the above factors, Income (Loss) from continuing operations of NOK -0.5 (-3.9) million was recorded in the quarter.

EBITDA ended at NOK 0.24 (-1.9) million which represents a decreased loss of NOK 2.1 million compared with the same period last year.

Nine months

The fi rst nine month's revenue was NOK 56.9 (52.0) million, which represents an increase in revenue of 9.4% over the same period last year. The increase in revenue compared to the same period last year is a result of top-line growth in the two operating segments, Smart Mobile Data and Secure Mobility.

Salaries and wages were NOK 38.0 (33.2) million.

Other operating expenses for the fi rst nine months were NOK 16.3 (16.7) million.

As a result of the above factors, Income (Loss) from continuing operations of NOK -5.8 (-6.9) million was recorded in the fi rst nine months.

EBITDA ended at NOK -1.4 (-0.82) million which represents an increased loss of NOK 0.6 million compared with the same period last year.

Cash fl ow

Third quarter

Cash fl ow for the quarter was positive and our net cash balance increased by NOK 1.7 million to NOK 16.9 million. The third quarter last year showed a cash balance decrease of NOK 5.2 million.

Net cash fl ow from operating activities was NOK 4.0 million. Third quarter last year, net cash fl ow from operating activities was NOK -3.9 million.

Nine months

Cash fl ow for the fi rst nine months was negative and our net cash balance decreased by NOK 5.4 million to NOK 16.9 million. The same period last year the cash balance decreased by NOK 15.2 million.

Net cash fl ow from operating activities for the fi rst nine months was NOK -1.2 million. The fi rst nine months last year net cash fl ow from operating activities was NOK -10.9 million.

Financial statements

Condensed Consolidated Statements of Operations

(In thousands of NOK, except share and per share data)

		For the three months ended		For the nine months ended	For the full year
	30.09.2014	30.09.2013	30.09.2014	30.09.2013	2013
OPERATING REVENUES	17.770	16.469	56.952	52.036	71.185
Cost of Sales	(1.223)	(1.397)	(4.012)	(2.890)	(4.047)
OPERATING EXPENSES
Salaries and wages	(11.611)	(11.778)	(38.011)	(33.238)	(44.829)
Other operating expenses	(4.692)	(5.180)	(16.308)	(16.726)	(22.148)
TOTAL OPERATING EXPENSES	(16.303)	(16.958)	(54.319)	(49.964)	(66.977)
Operating income loss before
depreciation and amortization (EBITDA)	244	(1.886)	(1.380)	(818)	160
Depreciation and amortization	(2.153)	(2.141)	(6.446)	(6.161)	(8.576)
Operating income loss after
depreciation and amortization (EBIT)	(1.909)	(4.027)	(7.826)	(6.980)	(8.416)
OTHER INCOME (EXPENSE)
Interest income, net	86	79	225	140	213
Other financial items, net	1.315	48	1.770	(99)	67
OTHER INCOME, NET	1.400	127	1.995	41	281
INCOME(LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES	(509)	(3.900)	(5.830)	(6.939)	(8.135)
Income taxes	-	-	-	-	(701)
INCOME(LOSS) FROM CONTINUING OPERATIONS	(509)	(3.900)	(5.830)	(6.939)	(8.836)
Earnings and diluted earnings per share
Continuing operations Total	(0,01) (0,01)	(0,04) (0,04)	(0,06) (0,06)	(0,08) (0,08)	(0,09) (0,09)

Condensed Consolidation Statements of Comprehensive Income

(In thousands of NOK, except share and per share data)

	For the three months ended		For the nine months ended	For the full year
	30.09.2014	30.09.2013	30.09.2014	30.09.2013	2013
Net income (loss) for the period	(509)	(3.900)	(5.830)	(6.939)	(8.836)
OTHER COMPREHENSIVE INCOME Currency translation effect TOTAL COMPREHENSIVE INCOME	316 (193)	(1.100) (5.000)	(647) (6.477)	122 (6.817)	1.344 (7.492)
Attributable to: Equity holder of the parent company TOTAL COMPREHENSIVE INCOME	(193) (193)	(5.000) (5.000)	(6.477) (6.477)	(6.817) (6.817)	(7.492) (7.492)

Condensed Consolidation Balance Sheets

(In thousands of NOK, except share and per share data)

		As of	As of
	30.09.2014	30.09.2013	2013
NON-CURRENT ASSETS:
Intangible assets	48.758	48.930	50.111
Tangible assets	1.192	118	256
Other non-current assets	-	-	-
TOTAL NON-CURRENT ASSETS	49.951	49.048	50.367
CURRENT ASSETS:
Accounts receivable	15.969	19.284	14.488
Other current assets	1.737	3.206	2.278
Cash & cash equivalents	16.879	1.766	22.331
TOTAL CURRENT ASSETS	34.585	24.256	39.096
TOTAL ASSETS	84.536	73.304	89.463
SHAREHOLDERS' EQUITY:
Share capital	10.162	9.199	10.012
Share premium fund	38.272	17.159	36.037
Retained earnings, including translation reserves	18.290	25.440	24.767
TOTAL SHAREHOLDERS' EQUITY	66.724	51.797	70.816
NON-CURRENT LIABILITIES
Deferred tax liabilities	175	-	175
Other liabilities	3.293	3.137	3.285
TOTAL NON-CURRENT LIABILITIES	3.468	3.137	3.460
CURRENT LIABILITIES
Accounts payable	3.424	2.579	3.126
Deferred revenue	2.551	3.498	1.405
Accrued expenses and other liabilities *	8.368	12.292	10.656
TOTAL CURRENT LIABILITIES	14.344	18.369	15.187
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	84.536	73.304	89.463

* Accrued pension cost in 2013 was displayed as a separate line in non-current liabilities.

In 2014 this item has been reallocated and is now included in Accrued expenses and other liabilities.

Condensed Consolidated Statements of Cash Flows

(In thousands of NOK)

	For the three months ended		For the nine months ended	For the full year
	30.09.2014	30.09.2013	30.09.2014	30.09.2013	2013
OPERATING ACTIVITIES
Income (loss) from continuing operations before taxes	(508)	(3.900)	(5.830)	(6.939)	(8.135)
Depreciation and amortization	2.153	2.141	6.446	6.161	8.576
Write down and impairment of assets	-	-	-	-	-
Change in receivables and payables	2.343	(2.172)	(1.775)	(10.078)	(7.213)
NET CASH FROM OPERATING ACTIVITIES	3.987	(3.931)	(1.159)	(10.855)	(6.772)
INVESTING ACTIVITIES
Capitalized development	(1.377)	(1.208)	(4.579)	(4.557)	(6.521)
Furniture, Machinery and Equipment and leashold improvments	(1.086)	-	(1.086)	-	-
Change in loan balance with affiliated company	-	-	-	-	-
NET CASH FROM INVESTING ACTIVITIES	(2.463)	(1.208)	(5.665)	(4.557)	(6.521)
FINANCIAL ACTIVITIES
New Issue	-	-	2.385	-	19.692
NET CASH FROM FINANCIAL ACTIVITIES	-	-	2.385	-	19.692
Effect of foreign exchange rate changes	207	(51)	(1.013)	257	(990)
Net increase(decrease) in cash & cash equivalents	1.731	(5.190)	(5.452)	(15.154)	5.410
Cash & cash equivalents, beginning of period	15.148	6.956	22.331	16.921	16.921
Cash & cash equivalents, end of period	16.879	1.767	16.879	1.767	22.331

Condensed Consolidated Statements of Changes in Shareholders' Equity

(In thousands of NOK, except share and per share data)

	Share capital	Share premium	Other paid equity	Other equity	Translation reserves	Total equity
Equity as at 31 December 2013	10.012	36.037	61.232	(49.140)	12.675	70.816
Net income (loss)	-	-	-	(5.830)	-	(5.830)
Other comprehensive income for the period
Displacements between restricted and						-
unrestricted reservs
Foreign currency exchange	-	-	-		(647)	(647)
Total comprehensive income	-	-	-	(5.830)	(647)	(6.477)
Transactions with shareholders:
Net issue of ordinary shares*	150	2.235	-	-	-	2.385
Total transactions with shareholders	Share 150	Share 2.235	Other paid -	Other -	Translation -	2.385 Total equity
Equity as at 30 September 2014	capital 10.162	premium 38.272	equity 61.232	equity (54.970)	reserves 12.028	66.724

Other comprehensive income for the period Foreign currency exchange - - - (647) (647) Total comprehensive income - - - (5.830) (647) (6.477) * A completion of a private placement of 1.500.000 shares was made May 20, 2014.

Displacements between restricted and unrestricted reservs - Foreign currency exchange - - - 122 122 Transactions with shareholders: Net issue of ordinary shares* 150 2.235 - - - 2.385 The share issue was made pursuant to an agreement entered into in 2011 with the former CEO, which agreement since has been assigned by such former CEO to a third party. The subscription price per share was set in the 2011 agreement.

Recognition of share-based payments Total transactions with shareholders	- Share - capital	(6) Share (6) premium	- Other paid - equity	- Other - equity	- Translation - reserves	(6) Total equity (6)
Equity as at 30 September 2013 Equity as at 31 December 2012	9.199 9.199	17.159 17.165	61.232 61.232	(47.243) (40.304)	11.452 11.330	51.797 58.621
Net income (loss)	-	-	-	(6.939)	-	(6.939)
Other comprehensive income for the period
Displacements between restricted and						-
unrestricted reservs
Foreign currency exchange	-	-	-		122	122
Total comprehensive income	-	-	-	(6.939)	122	(6.818)
Transactions with shareholders:
Net issue of ordinary shares	-	-	-	-	-	-
Recognition of share-based payments	-	(6)	-	-	-	(6)
Total transactions with shareholders	-	(6)	-	-	-	(6)
Equity as at 30 September 2013	9.199	17.159	61.232	(47.243)	11.452	51.797

Notes

Accounting Policies

The accompanying consolidated fi nancial statements are prepared under International Financial Reporting Standards (IFRS). Our fi scal year runs from January 1 to December 31.

The accompanying condensed consolidated statements of operations and cash fl ows cover the nine fi rst months of 2014, and the related information on Birdstep included in these notes to the fi nancial statements is unaudited. In the opinion of management, such interim statements include all adjustments, which consist only of the normally recurring adjustments necessary for a fair presentation of the consolidated results of operations, fi nancial position and cash fl ows for each period presented. The interim consolidated results are not necessarily indicative of results for the full year.

The same accounting policies and methods of computation are followed in the interim fi nancial statements as those of the most recent annual fi nancial statements.

These interim fi nancial statements are presented in Norwegian crowns (NOK). The functional currency of Birdstep's foreign operations is the currency of the country in which the operations are conducted.

The accounts of Birdstep are translated into the reporting currency, NOK, using exchange rates in effect at period-end for assets and liabilities, and at average exchange rates during the period for the results of operations.

EBITDA is equivalent to operating income (loss) excluding both discontinued operations and non-cash charges, such as depreciation and amortization.

Income per share is calculated by dividing net income available to common shareholders for the period by the weighted average number of common shares outstanding during the period.

As of September 30, 2014, the Company has 101.621.627 shares issued and 101.600.572 shares outstanding, the difference of 21.055 representing treasury shares.

Segment Reporting

The Company is divided into two separate operating segments (Smart Mobile Data and Secure Mobility)

	For the three months ended			For the nine months ended	full Year
	30.09.2014	30.09.2013	30.09.2014	30.09.2013	2013
Smart Mobile Data
Operating Revenues	11.978	11.978	39.427	38.967	51.813
EBIT	(2.175)	(3.318)	(6.712)	(4.100)	(5.884)
Secure Mobility
Operating Revenues	5.791	4.491	17.525	13.069	19.372
EBIT	266	(708)	(1.114)	(2.879)

Risks

This report contains statements regarding the future in connection with the company's growth expectations, general and specifi c market outlook and objectives. All statements about the future are subject to inherent risks and uncertainties, and many factors can lead to actual profi ts and developments deviating substantially from that which has been expressed or implied in such statements.

Birdstep Technology is exposed to various forms of market, operational and fi nancial risk.

Financial instruments that potentially subject Birdstep to concentrations of credit risk consist primarily of cash and accounts receivable. Birdstep performs ongoing evaluations of customers' fi nancial condition to determine if any provision for potential uncollectible amounts is needed. As of September 30, 2014, no provisions for potential uncollectible amounts had been made.

The company's various risks have been described in the Annual Report/ Prospectus in further detail and no other risks has been identifi ed.

Financial Calendar 2015

Preliminary fi nancial calendar, with reservations for changes:

Quarterly Reports

Q4 2014 - 11th February 2015

• Q1 2015 27th April 2015
• Q2 2015 31st July 2015
• Q3 2015 4th November 2015

Annual General Meeting

27th April 2015

Birdstep Technology ASA invites shareholders, investors, media and other stakeholders to a phone conference following the announcement of the quarterly earnings reports.

Time and call-in details or place of the events above will be communicated at a later stage via OSE, Oslo Stock Exchange and www.birdstep.com.

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														$\overline{7}$	8
														14	15
															22	23
															29 30
														F	s
														4	5
														11	12
														18	19
28 29 30 27 28 29 30 31 23 24 26 27 28 29 26 25 28 29 30 31														25	26	27