IFS Preliminary Financial Report - Continued growth and improved earnings during 2007. Stronger positions in IFS' targeted industries resulted in a 12% increase in license revenue and a 72% increase in EBIT.

(31 January 2008, Linköping)

Fourth quarter 2007

Net revenue reached SKr 682 million (616). License revenue was SKr 148 million (140), whereas maintenance and support revenue amounted to SKr 176 million (153). Consulting revenue reached SKr 353 million (313).

EBIT increased to SKr 64 million (63), negatively affected by provisions of SKr 10 million for disputes. Profit before tax was SKr 67 million (49). Profit after tax amounted to SKr 28 million (223). Profit in 2006 was positively affected by a revaluation of activated deferred tax claims of SKr 183 million. Profit per share for the period was SKr 0.11 (0.96).

Cash flow from current operations decreased to SKr 101 million (134), primarily because of delayed customer payments over the turn of the year. Cash flow after investment operations amounted to SKr 61 million (75).

Full year 2007

Net revenue reached SKr 2,356 million (2,209). License revenue increased to SKr 478 million (433), whereas maintenance and support revenue amounted to SKr 659 million (600), representing an organic growth in product revenue of 12%. Consulting revenue reached SKr 1,194 million (1,140).

EBIT increased to SKr 141 million (120), with earnings before tax of SKr 129 million (75). Profit after tax was SKr 122 million (246). Profit in 2006 was positively affected by a revaluation of activated deferred tax claims of SKr 184 million compared with SKr 58 million in 2007. Profit per share after tax was SKr 0.48 (1.07).

Cash flow from current operations amounted to SKr 174 million (252). Cash flow after investment operations totaled SKr 20 million (86).

Outlook

The target of the board of directors for 2008 is to increase EBIT and significantly improve 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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