IAR SYSTEMS GROUP AB INTERIM REPORT JANUARY – JUNE 2011

Higher sales in all regions and improved profitability

Net sales of SEK 94.7m (85.7), of which SEK 48.9m (42.1) in the second quarter
Operating profit of SEK 9.2m (5.3), of which SEK 5.4m (2.4) in the second quarter
Operating margin of 9.7% (6.2) for the period and 11.0% (5.7) for the second quarter
Earnings per share of SEK -3.33 (1.44) for the period and 0.49 (0.60) for the second quarter
In local currency, net sales for the period rose by 27% in the USA, 15% in Europe and 36% in Asia
As earlier, the Board’s long-term financial targets are for net sales to grow by 10-15% annually in local currency and for operating margin to exceed 20% over a business cycle

Key events during the period

Deltaco was distributed to the shareholders, with April 19, 2011, as the first day of trading on First North
Northern was sold to its management on April 15, 2011. The sale was approved by the Extraordinary General Meeting on May 3, 2011
The Annual General Meeting on May 3, 2011, resolved to change the company’s name IAR Systems Group AB
The company has products to support development environments in Eclipse and launched a number of important products for ARM and Renesas

Key events after the end of the period

The Annual General Meeting on May 3, 2011, approved an incentive scheme through a directed issue of not more than 1,168 856 warrants. During the subscription period ending on July 7, 2011, the employees subscribed for 1,017,000 (87%) of the warrants.

The english Interim-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.