INTERIM RAPPORT JANUARY-MARCH 2012

Sales up by 27% and earnings doubled

• Net sales of SEK 58.0m (45.8)
• Operating profit of SEK 8.0m (3.8)
• Profit before tax of SEK 7.6m (3.7)
• Cash flow from operating activities of SEK 1.3m (-4.1) and net cash of SEK
  30.8m (17.7) at the end of the quarter
• Operating margin of 13.8% (8.3)
• Earnings per share, calculated on profit from continuing operations, of SEK
  0.62 (0.32) after paid tax
• In local currency, net sales for the quarter rose by 26% in the Americas,
  20% in Europe and 20% in Asia

Key events during the period

• IAR Systems opens a sales office in Seoul, South Korea
• I-jet launched and sales started at the end of the quarter

The english Year-end-report is a translation of the Swedish original. In event of discrepancy between the English translation and the Swedish original,  the original Swedish version shall prevail.

IAR Systems, founded in 1983, is one of the world's leading providers of software for programming of processors in embedded systems. The company's development tools are used by more than 14,000 companies to program processors that control products in the areas of industrial automation, medical devices, consumer electronics, telecommunications, automotive products, etc.

IAR Systems brings value to organizations that develop embedded products. We provide the tools and services that make embedded software development fast, efficient and reliable. This enables our customers across the globe to deliver better products faster to their markets.

IAR Systems Group is listed on NASDAQ OMX, under ticker IAR.