Techstep ASA — Report Publication Announcement 2010

Feb 11, 2010

birdstep TECHNOLOGY

Continued growth in EasyConnect

(Oslo, February 10, 2010) Birdstep Technology ASA reported total revenues of 29,1 million (39,1 million) and an EBITDA of NOK –5,1 million in the fourth quarter of 2009 (4,5 million). Net cash flow has shown a positive development through 2009 and was at –1 million in the fourth quarter (16,7 million).

The company's key business segment EasyConnect showed a healthy revenue growth of 42% compared to the fourth quarter 2008. 550 007 new customers activated their USB modems with EasyConnect software in the quarter, compared to 464 762 activations in the corresponding quarter last year.

Full year revenues ended at 107,9 million, up from 103,6 million in 2008. For the full year, EBITDA ended at –23,5 million compared to –33,1 million the previous year.

EasyConnect posted a healthy 42% growth in revenues vs the fourth quarter 2008. The underlying market momentum continues to be very strong, and the mobile broadband penetration is still on a very low level in several of the company's focus markets.

• The mobile broadband market is in strong growth and is a very dynamic and fast changing segment. For Birdstep it is important to constantly adapt to this evolving market and we have therefore implemented an important reorganization during the fourth quarter. This will increase the emphasis on sales and allow us to explore synergies across core business units that will strengthen our customer acquisition capabilities, says Torbjörn Sandberg

For further information, please see the filed Q4 interim report.

Torbjörn Sandberg
CEO and President of Birdstep Technology ASA
+46 70 5170964
Torbjorn.Sandberg@birdstep.com

Alex Gundersen
CFO of Birdstep Technology ASA
+47 41 474107
Alex.Gundersen@birdstep.com

About Birdstep

Birdstep Technology ASA is a leading provider of secure and seamless wireless connectivity software for operators, enterprises and mobile device manufacturers. EasyConnect offers advanced connection and service management solutions for network operators and laptop manufacturers. SafeMove is a mobile VPN solution providing seamless and secure connectivity to business data for corporations and governments.

Birdstep Technology was founded in 1996 and is since 2002 listed on the Oslo Stock Exchange under the ticker BIRD. The company has 100 employees and is headquartered in Oslo, Norway, with competence centres in Sweden, Finland and the United States. For more information, visit www.birdstep.com.