To Consumers in the Nordic Region, the Rest of Europe and North America, and Is the Scandinavian Market Leader

INTERIM REPORT, JANUARY - JUNE 2005

Aspiro sells mobile content services, direct to consumers in the Nordic region, the rest of Europe and North America, and is the Scandinavian market leader. Aspiro has a broad portfolio of attractive mobile services like games, ringtones, wallpapers, video clips, real music, text directory inquiries and sports scores. Its primary target group is mobile users aged 15 – 40. Sales are via advertising and partnerships with mobile operators and media corporations. Aspiro also accesses its users directly via its web and wap portals using recognized brands like Inpoc and Mobilehits. Aspiro was founded in 1998 and has been quoted on the Stockholm Exchange O-list since 2001. As- piro employs approx 100 people, with its head ofﬁ ce in Sweden and local ofﬁ ces in Norway, Sweden, Denmark, the UK, Spain, Luxembourg, Estonia, Latvia, Lithuania and is represented by an agent in the US.

■ EBITDA before items affecting comparability was SEK 11.1 m page 3

■ Better-than-expected sales in June page 4

■ Cash ﬂ ow from operating activities amounted to SEK 10.9 m page 6 Q2 ■ Johan Lenander becomes CEO, with Erik Mitteregger appointed Chairman page 6 2 Q2 IN BRIEF

Second Quarter: EBITDA before Items Affecting Comparability of SEK 11.1 m

■ Second-quarter profit was better than expected, thanks to ■ Consolidated liquid funds were SEK 91.9 m (SEK 27.5 m) robust sales in June through Media Partners and a bigger at the end of the period. A SEK 6.9 m debt to Schibsted customer base in subscription services. Moreover, syner- ASA was fully amortized in the period. Second-quarter gies from the Schibsted Mobile acquisition had a positive cash flow from operating activities was SEK 10.9 m. effect already in the second quarter. ■ Former full-time Executive Chairman Johan Lenander was ■ Net sales in the second quarter were SEK 101.4 m (SEK appointed Aspiro’s CEO, and took up this position, in the 14.5 m), with Schibsted Mobile contributing SEK 48.5 m. period. Simultaneously, Erik Mitteregger was appointed Chairman. ■ Second-quarter EBITDA was SEK 8.0 m (SEK -10.7 m), with this figure subject to SEK 3.1 m (SEK -10.3 m) of ■ Because sales via wap expanded, seasonality over the restructuring expenses. Accordingly, EBITDA before items year has alleviated. Nevertheless Aspiro anticipates sales affecting comparability was SEK 11.1 m. remaining relatively high in July, August, December and January. ■ Revised acquisition analysis resulting from the adoption of IFRS leads to second-quarter operating profit/loss being subject to SEK 2.8 m of intangible assets amortization.

■ Proﬁt/loss after tax for the second quarter was SEK 4.5 KEY FIGURES April - June 2005 January - June 2005 m (SEK -57.7 m) and earnings per share were SEK 0.02 Net sales, SEK m 101.4 (14.5) 171.9 (23.0) (-1.43). EBITDA, SEK m 8.0 (-10.7) 9.4 (-14.2)

Operating profit/loss, SEK m 4.6 (-57.7) 3.4 (-63.5) ■ The integration between Aspiro and Schibsted Mobile Net earnings, SEK m 4.5 (-57.7) 4.0 (-63.5) was concluded in the period, and total restructuring Earnings per share, SEK 0.02 (-1.43) 0.03 (-1.63) expenses were SEK 6.9 m, SEK 3.1 m of which reduced Figures in brackets are for the corresponding period of the previous year. second-quarter proﬁt/loss. The total estimated savings from restructuring are expected to generate annualized cost synergies of some SEK 9 m, with the full effect from the fourth quarter 2005. In addition, the acquisition is expected to generate signiﬁcant revenue synergies. SALES AND EARNINGS 3

Figures in brackets are for the corresponding period of Schibsted Mobile. the previous year. The pro forma figures for the first The revised acquisition analysis resulting from the adop- quarter 2005 published below consolidate Schibsted tion of IFRS meant that second-quarter operating profit was Mobile from 1 January 2005 onwards. subject to amortization of SEK 2.8 m. In the second quarter, profit after tax was SEK 4.5 m (SEK -57.7 m). ADOPTION OF IFRS FROM 2005 The operational integration of Aspiro and Schibsted Mo- —REVISED ACQUISITION ANALYSIS bile was concluded in the period, with profits subject to SEK In its Consolidated Financial Statements, Aspiro has adopted 3.1 m (SEK 10.3 m) in final restructuring expenses relating to IFRS (International Financial Reporting Standards) from 2005 factors including severance pay to the previous CEO. onwards. The comparative year 2004 has been recalculated Earnings per share were SEK 0.02 (SEK -1.43) in the se- pursuant to these new Standards. cond quarter. Outstanding options imply no dilution. Only provisional acquisition analysis for the takeovers of Cellus and Schibsted Mobile were available coincident with the THE INTERIM PERIOD (JANUARY-JUNE) first-quarter 2005 Interim Report, implying that no intangible Net sales amounted to SEK 171.9 m (SEK 23.0 m) for the six- assets were accounted separately from goodwill. The definitive month period, of which Schibsted Mobile contributed SEK 65.4 division of the acquisition price enabled the identification and m (Mar-Jun). evaluation of trademarks and brands, technology and cont- EBITDA was SEK 9.4 m (SEK -14.2 m) for the first half- racts with media partners. The revised acquisition analysis year, a figure subject to SEK 6.9 m (SEK 10.3 m) of restructur- have resulted in acquisition values of previously accounted ing expenses arising coincident with the acquisition of Schib- consolidated goodwill reducing by SEK 33.2 m. The acquisi- sted Mobile. tion value of other intangible assets has increased by SEK 46.1 Revised acquisition analysis resulting from the adoption of m, and a deferred tax liability of SEK 12.9 m has been accoun- IFRS meant the six-month period operating profit/loss being ted. subject to amortization of SEK 5.0 m. Profit after tax for the This recalculation has resulted in operating profit/loss six-month period was SEK 4.0 m (SEK being subject to SEK 2.2 m of amortization for the first quarter -63.5 m). 2005 and SEK 2.8 m for the second quarter. Operating profit Earnings per share were SEK 0.03 (SEK -1.63) for the half- for the second half-year 2004 was subject to amortization of year. Outstanding options imply no dilution. SEK 3.8 m. The revised acquisition analysis do not affect consolidated cash flow and EBITDA. More information relating to the adoption of IFRS is published in the Comments on the Accounts.

SALES AND EARNINGS

CURRENT REPORTING PERIOD (APRIL-JUNE) Net sales for the second quarter were SEK 101.4 m (SEK 14.5 m), of which Schibsted Mobile (Inpoc), which was acquired in the first quarter, contributed SEK 48.5 m. Sales growth was favorable in the period with robust growth in June due to factors including increased sales via wap portals and an expansion of the subscription services customer base. Traditionally, the second quarter is Aspiro’s weakest in sales terms, but because of increased sales via wap, sales seasonality through the year has been mitigated. Moreover, underlying growth contributed to second-quarter net sales being comparable with the previous quarter’s of SEK 102.2 m pro forma. EBITDA in the second quarter was SEK 8.0 m (SEK -10.7 m), a figure subject to SEK 3.1 m (SEK 10.3 m) of restructuring expenses. Accordingly, EBITDA before items affecting comparability was SEK 11.1 m. EBITDA for the first quarter 2005 was SEK 1.4 m. The improved EBITDA is partly a result of synergy gains achieved from the acquisition of 4 SALES

PRO FORMA SALES AND PROFIT BY SALES CHANNEL, Q2 2005 Earnings Net of Acquired enterprise Schibsted Mobile has been consolidated Sales Channel Net Sales from 1 March 2005 onwards. This transaction results in Aspiro Direct Expenses* Media Partners, SEK m 57.7 26.4 generating annualized sales of over SEK 400 m, with some 100 employees. The following table illustrates the group’s pro Advertising, SEK m 24.3 5.5 forma sales and earnings for the ﬁrst half-year, as if Schibsted Aspiro channels, SEK m 19.4 13.9 Mobile had been consolidated from 1 January 2005 onwards. SALES AND PROFIT BY GEOGRAPHICAL MARKET, Q2 2005 Earnings Net of CONSOLIDATED INCOME STATEMENT JANUARY - JUNE 2005 Geographical Market Net Sales Direct Expenses* SCHIBSTED ASPIRO Nordic region, SEK m 84.2 36.1 SEK 000 MOBILE PRO FORMA Rest of Europe, Operating revenues US and Canada, SEK m 17.2 9.7 Net sales 96,996 203,467 * Net sales less expenses for purchased content, advertising and revenue sharing. Other operating revenues 266 1,458 Total 97,262 204,925 SALES BY PRODUCT GROUP, Q2 2005 Operating expenses Product Group Net Sales, SEK m Services and goods for resale -18,755 -34,444 Music 29.2 Other external expenses -49,581 -112,604 Image/video 15.7 Personnel expenses -17,559 -37,442 Information services 16.0 Depreciations and write-downs of Games 17.9 tangible fixed assets -721 -1,135 Community services 5.1 Amortization and write-down of Other 17.5 intangible fixed assets -211 -5,785 Other operating expenses -88 -808 Profit before restructuring expenses 10,347 12,707 ASPIRO SALES

BY SALES CHANNEL Restructuring expenses -2,718 -6,857 Operating profit 7,629 5,850 ■ Media partners, 57% Net financial income/expense -240 -888 ■ Advertising, 24% ■ Profit after financial items 7,389 4,962 Aspiro channels, 19%

Tax - 1,549

Net profit for the period 7,389 6,511 BY GEOGRAPHICAL MARKET

Earnings per share (SEK) - 0.04 ■ Nordic region, 83% ■ Rest of Europe, US and Canada, 17%

SALES Sales in June were better than expected, with positive progress BY PRODUCT GROUP due to factors including robust growth on Aspiro’s, and several media partners’, wap portals, and the brisk expansion of the ■ Music, 29% subscription services customer base. ■ Games, 18% Traditionally, the second quarter is Aspiro’s weakest in ■ Information, 16% sales terms, but because of the increasing number of purchases ■ Image/video, 15% direct on mobile phones via wap, sales seasonality through the ■ Community services, 5% ■ year has been mitigated. Other, 17% SALES 5

SALES CHANNELS PRODUCT GROUPS Aspiro markets and distributes services to consumers through Aspiro’s mobile services are divided into five groups, as ap- three channels: Media Partners, Advertising and Aspiro parent in the table on the previous page. channels. Aspiro sold some 2.2 million ringtones of various types in the second quarter like polyphonic, Realtones (30-second Media Partners real music clips), Funtones (various novelty sounds) and Aspiro contributes mobile services, marketing material and Nametones. Realtone unit sales have increased, but polyphonic campaigns to its partners, and in exchange, receives marke- ringtones still comprise 62% of the unit ringtone sales volumes ting space or direct consumer contacts. Revenues are shared in the second quarter. Ringtone unit sales grew 10% quarter between Aspiro and its media partners. on quarter; the biggest-selling ringtones in June in Sweden Sales through Media Partners increased in the period, with were Schnappi the Crocodile and Eurovision winner Helena particularly positive progress in Sweden, Norway and the US. Paparizou. Aspiro extended its collaboration with a number of Scandina- Some 1.1 million image/video products were sold in the vian operators in the period. second quarter, corresponding to first-quarter sales. Net sales through Media Partners in the second quarter Game unit sales also increased in the second quarter, due were SEK 57.7 m, against SEK 53.7 m pro forma in the first partly to increasing numbers of more sophisticated Java-sup- quarter 2005. Profit after direct expenses was SEK 26.4 m in the ported handsets, and the increased selection of attractive games period against SEK 19.4 m pro forma in the previous quarter. for broad target groups. Aspiro sold some 680,000 Java games in the second quarter, with the biggest-sellers in Sweden in Advertising and Aspiro Channels June being the classic Tetris and poker game Limit Texas Hold Aspiro sources marketing space mainly in print media in its ‘em. Meanwhile, Japanese crossword game Sudoku made its Advertising Sales channel. Cost of sales within Advertising is appearance in the hit-list. relatively high, although there is no revenue sharing. The eli- Aspiro launched its proprietary community service mination of advertising in unprofitable channels reduced sales ChatUnited in Sweden and Denmark, and Lifestylers in Nor- somewhat in the second quarter. way in the period. Revenues from subscription services are included in Ad- vertising. In the period, Aspiro continued to invest in adverti- MARKET sing space to build its subscription services. This cost burdened There is high corporate transaction intensity on the mobile profits, but revenues will be generated also in the future. services market, with listed UK player Itouch bought out by Second-quarter net sales in Advertising were SEK 24.3 For-side of Japan, and listed Italian company Buongiorno m against SEK 28.2 m pro forma in the first quarter 2005. Vitaminic acquiring community player Freever. Earnings net of direct expenses for the period were SEK 5.5 m The mobile content services market made stable progress against SEK 6.8 m pro forma in the previous quarter. in the period, and Aspiro expects demand for the products it Aspiro has chosen to account sales from subscription is selling as of today to rise by 10 to 15% annually through the services under Advertising, because subscribers have been re- coming years. cruited through the Advertising channel. As a result of sales in Advertising and Aspiro Channels increasingly overlapping, the PARENT COMPANY responsibility for both channels has been assigned to a single The net sales of the parent company totalled SEK 15.5 m (SEK executive on the management team. 7.3 m) in the first half-year, of which SEK 5.1 m (SEK 0 m) Aspiro’s web and wap pages, where the company markets were intra-group sales. Earnings after financial items totalled memberships and proprietary brands like Inpoc and Mobile- SEK -2.5 m (SEK -50.3 m) in the same period. hits, directory enquiries services and a membership magazine comprise Aspiro channels. Aspiro earns its highest margins in INVESTMENTS Aspiro channels because its exposure costs are lower. Investments in tangible fixed assets totalled SEK 0.3 m (SEK Second-quarter net sales through Aspiro channels were 0.06 m). SEK 19.4 m, against SEK 20.3 m pro forma in the first quarter 2005. Earnings net of direct expenses for the period were SEK 13.9 m, the same pro forma earnings as in the previous period. 6 THE SHARE AND STOCKHOLDERS

LIQUIDITY AND FINANCE As of 30 June, Aspiro had 9,372 stockholders. The largest stock- Liquid assets at the end of the period amounted to SEK 91.9 holders and their holdings as of 30 June are published below: m (SEK 27.5 m). Cash ﬂow from operating activities in the second quarter was SEK 10.9 m (SEK -7.3 m). A SEK 6.9 m debt to Schibsted ASA was repaid in the period. LARGEST STOCKHOLDER AS OF 30 JUNE 2005 STOCKHOLDER NO. OF SHARES HOLDINGS (%) HUMAN RESOURCES AND ORGANIZATION Schibsted ASA 57,405,776 30.77 Aspiro had 102 (29) employees at the end of the period, an VG 12,500,000 6.70 increase due to the acquisitions of Schibsted Mobile and Cellus Aftonbladet 8,333,333 4.47 and hiring in strategic segments. Aftenposten 3,322,785 1.78 The AGM (Annual General Meeting) on 13 May re-elected SvD 1,448,268 0.78 Mats Eriksson, Ulf Hubendick, Johan Lenander, Erik Mittereg- Total Schibsted group 83,010,162 44.49 ger, Sverre Munck and Christian Ruth as board members and elected Bjørn Gundersen and Gisle Glück Evensen as Deputy Investra ASA 8,000,000 4.29 Board members. The meeting resolved to appoint a Nomina- Catella Case 4,259,000 2.28 tion Committee comprising Johan Lenander (convener but SIS Segaintersettle AG 3,956,436 2.12 not entitled to vote), Christian Ruth from Schibsted, Marianne Robur small-caps fund Sweden 3,744,200 2.01 Nilsson from Robur and Ulf Strömsten from Catella. Netfonds ASA 3,730,436 2.00 Former full-time Executive Chairman Johan Lenander Hansen, Erik 3,595,608 1.93 was appointed CEO in the period, replacing Erik Hansen, who Winger, Odd 3,073,170 1.65 announced his resignation coincident with the acquisition of Schibsted Mobile. Simultaneously, Erik Mitteregger was elected Banque Carnegie Luxembourg 2,986,776 1.60 Chairman. To maintain the growth focus, Cellus’ former CFO Robur, Sweden fund 2,764,270 1.48 Didrik Michelsen was appointed as Vice President of M&A. SEB small-caps fund Sweden 2,470,000 1.32 A reorganization commenced in the period; until the Mitteregger, Erik 1,500,000 0.80 present, Vice President, Advertising Rune Wisted-Thu had his Manticore 1,400,000 0.75 remit extended to Aspiro channels, the previous Vice President Robur Nordic small-caps fund 1,389,800 0.74 of Aspiro channels Per Einar Dybvik is now Vice President of Other stockholders 60,692,262 32.53 Content/Products. Organizational resources have also been Total, 3o June 2005 186,572,120 100.00 realigned with clearer country accountability and Community Source: VPC AB products have been organized into a dedicated proﬁt centre located in Malmö.

THE SHARE AND STOCKHOLDERS EVENTS AFTER THE END OF THE PERIOD The Aspiro share has been traded on the Stockholm Stock Ex- No signiﬁcant events have occurred after the end of the period. change O-list since 2001. The share price as of 30 June was SEK 3.10; total market capitalization was some SEK 578 m. OUTLOOK The AGM resolved on a new staff stock option plan Traditionally, sales of mobile content services peak in vacation encompassing a maximum of 10,000,000 staff stock options and holiday periods, and also track new mobile handset sales. targeted at the CEO, senior executives and other key Aspiro Because sales via wap have increased, sales seasonality through staff. One-third of the staff stock options can be exercised each the year has been mitigated. However, Aspiro anticipates that year from May 2006 to May 2008 inclusive; providing that the looking ahead, sales in July, August, December and January option-holder remains an employee of the group. Each staff will remain relatively strong. stock option confers the right to receive a warrant for im- Synergies from the Schibsted Mobile acquisition are pri- mediate subscription for one Aspiro share at an exercise price marily being secured in technical operations, content procure- of SEK 3.77. The exercise price will increase to the extent the ment and the coordination of sales/markets and administration company’s social security expenses for the plan exceed SEK 10 in Sweden and Norway. In total, annual savings resulting from m. As of 30 June, 8,000,000 of the staff stock options had been the restructuring are estimated at some SEK 9 m, expected to apportioned to company employees. have their full effect from the fourth quarter onwards. Syner- The number of outstanding Aspiro shares is 186,572,120. gies already had a positive earnings effect in the second quarter, With full exercise of outstanding options, the number of shares and in addition, the acquisition is expected to result in signiﬁ- could increase to 196,590,076. cant revenue synergies. BRIEF FINANCIAL SUMMARY 7

Aspiro now has very strong positioning in Scandinavia. The Board intends to keep pursuing its growth strategy to advance Aspiro’s positioning in Europe. Growth will be organic and acquisition led.

REPORTING SCHEDULE From the third quarter onwards, the Board has resolved to synchronize its reporting dates with the company’s main share- holder, listed Norwegian corporation Schibsted ASA. Publica- tion dates for the company’s forthcoming reports are published on the back cover of this Interim Report.

Johan Lenander, Chief Executive Ofﬁcer

Aspiro AB (publ) Corporate ID no. 556519-9998

Malmö, Sweden, 19 August 2005

For further information, please contact: Ann Charlotte Svensson Head of Corporate Communications and IR Tel: +46 (0)70 991 8010 e-mail: [email protected]

Johan Lenander Chief Executive Ofﬁcer Phone: +46 (0)70 821 8001 e-mail: [email protected]

BRIEF FINANCIAL SUMMARY Q2 2005 Q1 2005 Q4 2004 Q3 2004 Q2 2004 Q1 2004 2004 Net sales (SEK m) 101.4 70.5 52.1 54.5 14.5 8.5 129.5 Earnings after financial items (SEK m) 3.7 -1.1 1.1 1.6 -57.7 -5.8 -60.8

EBITA (SEK m) 7.5 1.1 3.4 4.3 -10.9 -3.7 -6.9

EBITDA (SEK m) 8.0 1.4 3.6 4.6 -10.7 -3.5 -6.0

Solidity (%) 80 76 76 71 55 84 76

Return on stockholders equity (%) 1.1 neg. 0.9 2.1 neg. neg. neg.

Earnings per share (SEK) 0.02 -0.00 0.01 0.02 -1.43 -0.19 -0.89 Average no. of shares outstanding shares (000) 186,572 117,585 108,962 91,695 40,143 29,831 67,658 Average no. of shares outstanding and potential shares (000) 190,755 118,603 109,980 92,713 40,160 29,848 68,176 8 INCOME STATEMENT

Consolidated Income Statement

APR-JUN APR-JUN JAN-JUN JAN-JUN JAN-DEC SEK 000 2005 2004 2005 2004 2004 Operating revenues Net sales 101,376 14,536 171,909 22,990 129,525

Capitalized development costs - 283 - 757 757

Other operating revenues 673 309 1,412 393 850

Total 102,049 15,128 173,321 24,140 131,132

Operating expenses Services and goods for resale -17,306 -4,296 -27,967 -6,931 -22,738

Other external expenses -56,070 -12,713 -98,022 -17,984 -79,721 Personnel expenses -20,367 -8,788 -37,104 -13,312 -33,593

Depreciations and write-downs of tangible fixed assets -559 -156 -887 -336 -844

Amortization and write-downs of intangible fixed assets -2,894 -46,811 -5,136 -48,956 -53,259 Other operating expenses -271 -33 -792 -145 -1,115

Total operating expenses -97,467 -72,797 -169,908 -87,664 -191,270

Operating profit/loss 4,582 -57,669 3,413 -63,524 -60,138

Financial income 1,785 175 3,234 338 2,164

Financial expenses -2,646 -203 -4,008 -306 -2,829

Profit/loss after financial items 3,721 -57,697 2,639 -63,492 -60,803

Tax 779 - 1,387 - 913

Net profit/loss for the period* 4,500 -57,697 4,026 -63,492 -59,890

Earnings per share before dilution (SEK) 0.02 -1.43 0.03 -1.63 -0.89

Earnings per share after dilution (SEK) 0.02 -1.43 0.03 -1.63 -0.89

* Attributable to equity holders of the parent company 4,501 -57,695 4,027 -63,488 -59,888

Attributable to minority interest -1 -2 -1 -4 -2 BALANCE SHEET 9

Consolidated Balance Sheet

SEK 000 30 JUN 2005 30 JUN 2004 31 DEC 2004 ASSETS Intangible fixed assets

Licenses and trademarks 40,007 - 14,520

Goodwill 282,656 5,383 116,905

Total intangible fixed assets 322,663 5,383 131,425

Tangible fixed assets

Equipment 3,151 555 1,264

Total tangible fixed assets 3,151 555 1,264

Financial fixed assets

Other shares 27 8 8

Deferred tax 485 - -

Other long-term liabilities 256 50 208

Total financial fixed assets 768 58 216

Total fixed assets 326,582 5,996 132,905

Current receivables 94,336 23,034 55,568

Cash and bank balances 91,923 27,497 36,957

Total current assets 186,259 50,531 92,525

TOTAL ASSETS 512,841 56,527 225,430

STOCKHOLDERS’ EQUITY AND LIABILITIES Stockholders’ equity

Restricted equity 593,160 192,327 330,898

Accumulated deficit -186,412 -97,930 -99,062

Net profit/loss for the period 4,026 -63,492 -59,890

Minority interest 8 10 11

Total stockholders’ equity 410,782 30,915 171,957

Provisions 1,043 5,845 2,273

Long-term liabilities 0 0 1

Deferred tax liability 10,444 - 4,062

Current liabilities 90,572 19,767 47,137

Total provisions and liabilities 102,059 25,612 53,473

TOTAL STOCKHOLDERS' EQUITY AND LIABILITIES 512,841 56,527 225,430

10 CASH FLOW STATEMENT

Consolidated Cash Flow Statement

APR-JUN APR-JUN JAN-JUN JAN-JUN JAN-DEC

SEK 000 2005 2004 2005 2004 2004

OPERATING ACTIVITIES

Group net profit/loss for the period 4,500 -57,697 4,026 -63,492 -59,890

Adjustment for items not included in cash flow 3,117 46,602 5,436 50,455 49,997

Cash flow from operating activities before change in working capital 7,617 -11,095 9,462 -13,037 -9,893 Cash flow from change in working capital 3,295 3,811 16,711 -285 -8,549

Cash flow from operating activities 10,912 -7,284 26,173 -13,322 -18,442

INVESTING ACTIVITIES

Acquisition/divestiture of subsidiaries -280 - 38,181 -1,406 -60,883

Capitalized development costs - -283 - -757 -757

Change in tangible fixed assets -347 -20 -626 -58 -656

Change in financial fixed assets -46 - -100 -1 -

Cash flow from investing activities -673 -303 37,455 -2,222 -62,296

FINANCING ACTIVITIES

New issue/sales of options - - - 22,247 95,041

Change in financial liabilities -6,862 - -12,990 - 2,296

Cash flow from financing activities -6,862 - -12,990 22,247 97,337

Cash flow for the period 3,377 -7,587 50,638 6,703 16,599

Liquid funds, opening balance 84,495 35,088 36,957 20,779 20,779

Exchange rate difference in liquid funds 4,051 -4 4,328 15 -421

Liquid funds, closing balance 91,923 27,497 91,923 27,497 36,957

QUARTERLY INCOME STATEMENT 11

Quarterly Income Statement

SEK 000 Q2 2005 Q1 2005 Q4 2004 Q3 2004 Q2 2004 Q1 2004 Operating revenues Net sales 101,376 70,533 52,074 54,461 14,536 8,454

Capitalized development costs - - - - 283 474

Other operating revenues 673 739 290 69 309 84

Total 102,049 71,272 52,364 54,530 15,128 9,012

Operating expenses Services and goods for resale -17,306 -10,661 -7,567 -8,899 -4,296 -2,635

Other external expenses -56,070 -41,952 -30,777 -30,869 -12,713 -5,271 Personnel expenses -20,367 -16,737 -9,846 -10,140 -8,788 -4,524

Depreciations and write-downs of tangible fixed assets -559 -328 -254 -254 -156 -180

Amortization and write-downs of intangible fixed assets -2,894 -2,242 -2,103 -2,199 -46,811 -2,145 Other operating expenses -271 -521 -558 -42 -33 -112

Total -97,467 -72,441 -51,105 -52,403 -72,797 -14,867

Operating profit/loss 4,582 -1,169 1,259 2,127 -57,669 -5,855

Financial income 1,785 1,449 1,134 692 175 163

Financial expenses -2,646 -1,362 -1,265 -1,258 -203 -103 Profit/loss after financial items 3,721 -1,082 1,128 1,561 -57,697 -5,795

Tax 779 608 377 536 - -

Net profit/loss for the period 4,500 -474 1,505 2,097 -57,697 -5,795 12 STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

Statement of Changes in Stockholders’ Equity 1 Jan - 30 Jun 2005

MINORITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY INTEREST

SHARE RESTRICTED ACCUM. NET PROFIT/ SEK 000 CAPITAL RESERVES DEFICIT LOSS, PERIOD TOTAL

Beginning of period in accordance with Balance Sheet 191,773 138,774 -98,711 -60,873 170,963 Effects from transition to IFRS - 351 -351 986 8 994

Adjusted opening balance, IFRS 191,773 139,125 -99,062 -59,887 8 171,957 Allocation of previous period’s earnings -39,098 -20,789 59,887 - New share issue, acquisition of Schibsted Mobile AS 136,594 91,580 228,174 Translation differences for the period 6,625 6,625 Transfer between restricted and non-restricted reserves 73,186 -73,186 - Net profit/loss for the period 4,027 -1 4,026 Amount at end of the period 328,367 264,793 -186,412 4,027 7 410,782

Statement of Changes in Stockholders’ Equity 1 Jan - 30 Jun 2004

MINORITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY INTEREST

SHARE RESTRICTED ACCUM. NET PROFIT/ SEK 000 CAPITAL RESERVES DEFICIT LOSS, PERIOD TOTAL

Beginning of period in accordance with Balance Sheet 66,258 106,985 -77,563 -43,818 51,862 Effects from transition to IFRS - - - 24 24

Adjusted opening balance, IFRS 66,258 106,985 -77,563 -43,818 24 51,886 Allocation of previous period’s earnings -37,304 -6,514 43,818 - New share issue, preferential 20,000 2,247 22,247 New share issue, acquisition of Emode AS 14,101 6,103 20,204 Reduction of share capital -29,706 29,706 - Other change of minority interest -14 -14 Translation differences for the period 84 84 Transfer between restricted and non-restricted reserves 43,643 -43,643 - Net profit/loss for the period -63,488 -4 -63,492 Amount at end of the period 70,653 121,674 -97,930 -63,488 6 30,915 IFRS ADJUSTMENTS 13

IFRS adjustments, Consolidated Income statement

JAN-JUN 2004 JAN-JUN 2004 JAN-DEC 2004 JAN-DEC 2004 SEK 000 IFRS 3 IFRS IFRS 3 IFRS

Operating revenues 24,140 24,140 131,132 131,132

Services and goods for resale -6,931 -6,931 -22,738 -22,738

Other external expenses -17,984 -17,984 -79,721 -79,721 Personnel expenses -13,312 -13,312 -33,593 -33,593

Depreciations and write-downs of tangible fixed assets -336 -336 -844 -844

Amortization and write-downs of intangible fixed assets* -48,956 -48,956 -53,173 3,740 -3,826 -53,259 Other operating expenses -145 -145 -1,115 -1,115

Total operating expenses -87,664 -87,664 -191,184 -191,270

Operating profit/loss -63,524 -63,524 -60,052 -60,138

Net financial income/expense 32 32 -665 -665

Profit/loss after financial items -63,492 -63,492 -60,717 -60,803

Tax - - -158 1,071 913

Net profit/loss for the period -63,492 -63,492 -60,875 -59,890

Earnings per share before dilution (SEK) -1.63 -1.63 -0.90 -0.89

Earnings per share after dilution (SEK) -1.63 -1.63 -0.90 -0.89

* Earlier reported amortization of goodwill, during Q1 and Q2, has been reclassified as write-downs of goodwill. Earlier reported amortization of goodwill during Q3 and Q4 year 2004 (3,740) has been reversed. Amortization of intangible assets, identified separately from goodwill, affects the second half year of 2004 by 3,826, leading to a deferred tax income of 1,071. 14 IFRS ADJUSTMENTS

IFRS adjustments, Consolidated Balance Sheet

31 DEC 2003 1 JAN 2004 30 JUN 2004 30 JUN 2004 31 DEC 2004 31 DEC 2004 SEK 000 IFRS IFRS IFRS* ASSETS Intangible fixed assets

Goodwill 31,322 31,322 5,383 5,383 126,224 -9,319 116,905

Other 858 858 - - 13 14,507 14,520

Total intangible fixed assets 32,180 32,180 5,383 5,383 126,237 131,425

Tangible fixed assets 787 787 555 555 1,264 1,264

Financial fixed assets 58 58 58 58 216 216

Total fixed assets 33,025 33,025 5,996 5,996 127,717 132,905

Current receivables 11,665 11,665 23,034 23,034 55,568 55,568

Cash and bank balance 20,779 20,779 27,497 27,497 36,957 36,957

Total current assets 32,444 32,444 50,531 50,531 92,525 92,525

TOTAL ASSETS 65,469 65,469 56,527 56,527 220,242 5,188 225,430

STOCKHOLDERS’ EQUITY AND LIABILITIES Stockholders’ equity

Restricted equity 173,243 173,243 192,327 192,327 330,547 351 330,898

Accumulated deficit -77,563 -77,563 -97,930 -97,930 -98,711 -351 -99,062

Net profit/loss for the period -43,818 -43,818 -63,488 -63,492 -60,873 983 -59,890

Minority interest - 24 - 10 - 11 11

Total stockholders’ equity 51,862 51,886 30,909 30,915 170,963 171,957

Minority interest 24 - 6 - 8 -8 -

Provisions 2,068 2,068 5,845 5,845 2,273 2,273

Long-term liabilities 1 1 0 0 1 1

Deferred tax liabilies - - - - - 4,062 4,062

Current liabilities 11,514 11,514 19,767 19,767 46,997 140 47,137

Total provisions and liabilities 13,583 13,583 25,612 25,612 49,271 53,473

TOTAL STOCKHOLDERS’ EQUITY AND LIABILITIES 65,469 65,469 56,527 56,527 220,242 5,188 225,430

* Changes in the acquisition analysis, regarding Cellus, lead to that intangible assets were identified and recognised apart from goodwill. Deferred tax liabilities have been calculated by using a tax rate of 28%. Second half-year’s amortization of goodwill has been reversed.

COMMENTS ON THE ACCOUNTS 15

COMMENTS ON THE ACCOUNTS ‘short list’, which has formed the basis for estimating values. —ADOPTION OF IFRS The intangible assets identified and valued, distinct from Corporations quoted in the EU must apply IFRS (International consolidated goodwill, are trademarks and brands, technology Financial Reporting Standards) for their consolidated financial and contracts with media partners. In total, SEK 33.2 m of the statements, as approved by the EU, from 1 January 2005. The acquisition price of the two acquisitions have been apportioned effects on the consolidated Income Statement and Balance to intangible assets. The acquisition value of the intangible as- Sheet for 2004 and the first half-year 2005 presented below sets has been calculated as SEK 46.1 m, implying the accoun- are preliminary, based on current IFRS, and their interpreta- ting of a deferred tax liability of SEK 12.9 m. That portion of tion. Both the standards and interpretations may be subject the acquisition price that could not be apportioned to identi- to change until 31 December 2005, with a resultant effect on fiable assets and liabilities, consolidated goodwill, amounts to reported figures. SEK 277 m. IFRS 1 First-time Adoption of IFRS stipulates the practi- This Interim Report has been prepared pursuant to IAS 34, cal adoption of IFRS. The majority of the recommendations Interim Financial Reporting. Apart from the aforementioned implemented through IFRS have no, or limited, effect on the change in accounting principles, the same accounting princi- group’s financial reporting. However, IFRS has led to sub- ples and calculation methods as the Annual Report for 2004 stantial differences compared to previous accounting for the have been utilized. valuation of goodwill and other intangible assets coincident At present, outstanding options do not imply any share with the accounting of Business Combinations (IFRS 3). IFRS dilution, as the subscription price is higher than the shares’ 3 is adopted on the acquisitions effected after 1 January 2004. market value. Those staff stock options apportioned in the The exemption from the main principle of IFRS 1 that Aspiro second quarter have been accounted pursuant to IFRS 2. The chose to adopt is to zero translation differences in stockhol- actual value of options has been calculated pursuant to the ders’ equity as of 1 January 2004. Black & Scholes general model for valuing options, without ad- The acquisitions made in 2004 have been analyzed on the justing for potential dilution. The actual value of the 8 million basis of IFRS 3. At the acquisition date, the acquiring company options apportioned is SEK 4.8 m, with the related expenses must allocate the acquisition cost of a business combination divided linearly over the options’ 36-month term. SEK 271,000 by accounting the acquired entity’s identifiable assets, liabi- was posted to personnel expenses for the second quarter. lities and contingent liabilities that satisfy the stipulations of IFRS 3 p 37 at fair value at the acquisition date. The difference AUDITOR’S STATEMENT between the cost of the business combination and the fair value I have reviewed this Interim Report on behalf of Aspiro AB (net) of the acquired portion of identifiable assets, liabilities (publ), thereby observing the recommendation issued by FAR and contingent liabilities should be recognized as goodwill. The (the Institute for the Accounting Profession in Sweden). A re-conducted acquisition analysis of Emode AS (consolidated review is considerably more limited in scope than an audit. I from March 2004 onwards) did not enable any difference bet- have found nothing to indicate that this Interim Report contra- ween acquisition price and acquired net assets to be disclosed venes the Swedish laws of securities exchange and Annual separately from goodwill. The main motivation for the acquisi- Accounts Act. tion was as a step towards the subsequent acquisition of Cellus. Emode’s operations have basically migrated to Cellus, and the Ingvar Ganestam goodwill arising at the time of acquisition after an impairment Authorized Public Accountant, Ernst & Young test (SEK 18.8 m), was written down by SEK 16.2 m. The resi- dual goodwill attributable to Emode amounts to SEK 2.6 m. Malmö, Sweden, 19 August 2005 In the First-quarter Interim Report, it was only possible to allocate the acquisition cost of the acquisitions of Cellus (consolidated from July 2004) and Schibsted Mobile (consolidated from March 2005) provisionally. The provisional values meant no intangible assets were disclosed separately from goodwill apart from the intangible fixed assets recognized in the indi- vidual enterprises. Work on allocating the acquisition cost of the takeovers of Cellus and Schibsted Mobile was concluded in the second quarter. Identification of acquired intangible assets (‘long list’) was conducted in collaboration with Deloitte & Touche. An indicative assessment of which of the identified intangible assets may have a significant value has resulted in a 2005 FINANCIAL INFORMATION INVESTOR RELATIONS

Aspiro will publish the following ﬁnancial Updated information on Aspiro is uploaded at information for 2005: www.aspiro.com. Annual and other ﬁnancial reports are available for download from the Interim Report January-September 2005, Website. You can also contact the company by 3 November e-mail at [email protected], Year-end Report 2005, 9 February 2006 tel +46 (0)8 410 006 10, fax + 46 (0)8 441 19 10 Annual Report 2005, April 2006 or by mail:

Aspiro AB (publ) Investor Relations Östermalmsgatan 87 D SE-114 59 Stockholm SWEDEN

Parties interested in subscribing for information by e-mail from the company will receive ﬁnancial reports direct.

Aspiro sells mobile content services, direct to consumers in the Nordic region, the rest of Europe and North America, and is the Scandinavian market leader. Aspiro has a broad portfolio of attractive mobile services like games, ring tones, wallpapers, video clips, real music, text directory inquiries and sports scores. Its primary target group is mobile users aged 15 – 40. Sales are via advertising and partnerships with mobile operators and media corporations. Aspiro also accesses its users directly via its web and wap portals using recognized brands like Inpoc and Mobilehits. Aspiro was founded in 1998 and has been quoted on the Stock- holm Exchange O-list since 2001. Aspiro employs approx 100 people, with its head ofﬁce in Sweden and local ofﬁces in Norway, Sweden, Denmark, the UK, Spain, Luxembourg, Estonia, Latvia, Lithuania and is represented by an agent in the US.

This document is essentially a translation of Swedish language original thereof. In the event of any discre- pancies between this translation and the original Swedish document, the latter shall be deemed correct.