IFS Quarterly Report January-September 2007

(18 October 2007, Linköping)

Third quarter 2007

Net revenue amounted to SKr 528 million (485).

License revenue increased to SKr 106 million (93), with maintenance and support revenue reaching SKr 161 million (146).

Consulting revenue amounted to SKr 253 million (238).

EBIT amounted to SKr 20 million (13), including the positive effect of the reassessment of activated deferred tax claims, with earnings before tax amounting to SKr 14 million (3). Profit after tax was SKr 54 million (3), with profit per share after tax amounting to SKr 0.20 (0.01).

Cash flow after investments amounted to SKr 2 million (–26).

January-September 2007

Net revenue amounted to SKr 1,674 million (1,593).

License revenue increased to SKr 330 million (293), with maintenance and support revenue reaching SKr 483 million (447).

Consulting revenue amounted to SKr 841 million (827).

EBIT amounted to SKr 77 million (57), including the positive effect of the reassessment of activated deferred tax claims, with earnings before tax amounting to SKr 62 million (26). Profit after tax was SKr 94 million (23), with profit per share after tax amounting to SKr 0.37 (0.11).

Cash flow after investments amounted to SKr –41 (11).

Outlook

The expectations of the board for 2007 remain unchanged; an EBIT that is significantly better than the 2006 EBIT of SKr 120 million and continued improvement in cash flow.

About IFS and IFS Applications

IFS (OMX STO: IFS), the global enterprise applications company, provides solutions which enable organizations to respond quickly to market changes—allowing resources to be used in a more agile way to achieve better business performance and competitive advantage.

IFS was founded in 1983 and now has 2,600 employees worldwide. IFS has pioneered component-based ERP software with IFS Applications, now in its seventh generation. IFS’ component architecture provides solutions that are easier to implement, run and upgrade. IFS Applications is available in 54 countries in 22 languages.

IFS has over 600,000 users across seven key vertical sectors: aerospace & defense; automotive; high-tech; industrial manufacturing; process industries; construction, contracting & service management and utilities & telecom. IFS Applications provides extended ERP functionality including customer relationship management (CRM), supply chain management (SCM), product lifecycle management (PLM), corporate performance management (CPM), enterprise asset management (EAM) and maintenance repair and overhaul (MRO) capabilities.

For additional information, contact:

Alastair Sorbie, President and CEO
Phone: +44 (0) 1494 42 89 00

Håkan Gyrulf, Chief Financial Officer
Phone: +46 8 58 78 45 00

Manni Svensson, Investor and Public Relations
Phone: +46 8 5878 45 00

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