ThedéenChief Executive Officer Ola ElmelandVice President Marketing

CEO's Statement: Transmode's Profitable Growth Continues"Sales increased to SEK 235 m in the first quarter of the year, up 30% on the corresponding quarter of the previous year. We are growing in all three regions, and growth was especially high in the Americas. This growth is a result of continued positive progress in North and Latin America. In total, the group posted operating profit of SEK 40 m in the quarter, corresponding to an operating margin of 17%. This healthy operating profit was driven by revenue gains, a gross margin of 49% and continued operational efficiency. In the quarter, we as well launched new products that help increase the flexibility of optical networks. This is an important area for our clients, and the contracts announced in the quarter with Virgin Media and FMV are examples that relate to flexible optical networks."Karl ThedéenChief Executive Officer

Ola ElmelandVice President Marketing & CommunicationsTransmode Systems ABTelephone: +46 8 506 882 71Email: ola.elmeland@transmode.com:mailto:ola.elmeland@transmode.com