Annual Report 2005 Active 24 Will Gain the Position As the Preferred Choice in the Hosting Market Contents

ANNUAL REPORT 2005 ACTIVE 24 WILL GAIN THE POSITION AS THE PREFERRED CHOICE IN THE HOSTING MARKET CONTENTS

THE CONCISE ACTIVE24 2-7 Key Figures and Highlights 2005 2 Rising To The Challenge, Letter from CEO Jaap Zuiderveld 3 Flexible Business Model 4 Mission and Vision 4 Experience and Presence in Europe 5 The Management 6 Business Strategy 7

OUR PRODUCTS 8-13 5 Pillars of Delivery 8–9 A Refocused Portfolio 10 Product Delivery 11 ActiveHome/Active Business 12 What’s In It For You? 13

ACTIVE24 IN DEPTH 14-17 About The Market 14–15 Financial Discipline, CFO Thomas Christensen 16–17

ANNUAL REPORT 18-59 Board of Directors Report 2004 18–20 Presentation of the Board of Directors 19 Group Accounts Proﬁt & Loss 21 Balance 22–23 Cash Flow 24 Equity 25 Accounting Principles 26–28 Notes 29–44 Parent Accounts Proﬁt & Loss 45 Balance 46–47 Cash Flow 48 Equity 49 Accounting Principles 50 Notes 51–59

SHAREHOLDER INFORMATION AND CORPORATE GOVERNANCE 60-64 Shareholder Policy 60 Shareholders 61 Corporate Governance Principles 62–64

Glossary Backcover WE SOLVE COMPLEXITY AND OFFER COMPLETENESS -

2005 214.7 19.5 -14.0 -14.1 ��

2004 211.9 5.6 -10.3 -9.0

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Q4 05 53.3 0.7 -16.0 -12.6 �� Q3 05 51.5 2.3 -5.5 -7.1 REPLACEMENT OF 5 PROPRI REPLACEMENT OFFICE SYSTEMS BACK ETARY STANDARD WITH ONE INDUSTRY SYSTEM LAUNCH OF MICROSOFT HOSTED HOSTED OF MICROSOFT LAUNCH EXCHANGE

CONSOLIDATION OF DATA OF DATA CONSOLIDATION AND NORWAY TO CENTERS AMSTERDAM

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Q2 05 55.4 8.7 4.2 1.5

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�� Q1 05 54.5 7.9 3.4 4.1

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�� LOOPIA AND MILLENICUM LOOPIA ACQUISITION OF CP ONLINE, CY OF CP ONLINE, ACQUISITION LTD, BERNETIX, INTERNET CLUB CUSTOMER AND DOMAIN GROWTH GROWTH DOMAIN AND CUSTOMER PRICE REDUCTION DUE TO

OEM DEAL SIGNED WITH FINDEXA OEM DEAL

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in accordance with IFRS) in accordance

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Highlights 2005 Highlights KEY FIGURES KEY

ACTIVE 24 ANNUAL REPORT 2005 | 2 ACTIVE 24 ANNUAL REPORT 2005 | 3 - - - Jaap Zuiderveld Chief Executive Officer Chief Executive our shareholders. we strengthened our position as the Czech web hosting mar hosting web Czech the as position our strengthened we ket leader with the acquisitions of CP Online and Internet through Poland to geographically expanded also We Ltd. Club The is the market Polish growing acquisition of Cybernetix. in rate annual a growth compound and experienced we fast %. of 70 excess In 2005 we added MS to hosted exchange our offering. It mobility. cost-effective providing solution mail high-end a is as pages our directory) also signed We up (Yellow Findexa new a us gave launch successful Its partner. OEM major first channel. sales systems office back proprietary our replaced we 2005 During placed task major This system. standard industry single a with the of size sheer the to due organisation our on strains heavy this making into put efforts and energy the All involved. data on deliver to ability our of some away took success a project our sales ambitions. Despite this, the longer term benefits efficiency. organisational increased our in evident already are also consolidated We our data and our centers centralised customer to services better position our for im operations and standardisation. scalability proved the Overall, market outlook for 2006 seems good and we will focus on delivering on our promises to the market and We are confident that our repackaged products will become become will products repackaged our that confident are We in 2006. of the industry the shining stars & HIGHLIGHTS ACQUISITIONS com hosting growing fastest the acquired we 2005 During domains, new 000 35 us gave This Loopia. Sweden, in pany Further, segment. office small and consumer the in primarily ------

expected revenue. revenue. expected CEO KEYNOTE CEO experienced we Whilst in 2005. had a dynamic and challenging year 24 Active than lower also achieved of domains, we and number in customers growth strong will not be able to match. In our response we have laboured laboured have we response our In match. to able be not will want. customers our that quality product the create to hard and consumer segments. and consumer In this 2006respect, will give us some clear indications of hosting the that believe We strategy. new our of viability the the that and change considerable undergoing still is industry complete product a deliver will companies hosting pure larger ness and simplicity that the smaller or players focused less A customer survey gave us clear-cut and encouraging feed encouraging and clear-cut us gave survey customer A within was delivery requested the that revealed it Firstly, back. the limits of our ability to Secondly, execute. customers´ wishes pushed us to all improve aspects of our business, administra product simplified a and service customer from business the to offering our of differentiation clearer a to tion of our based strategy go-to-market on the understanding should focus our track, on back growth underlying with that, be long-term generation. Given that revenue both average challenged being is longevity customer and user per revenue our realigning involves solution the pressure, price market by strategy. delivery product Approximately half of Approximately our in growth 2005 was organic and companies. acquired through the rest FORWARD THE WAY Our second response to the competitive challenge will be restructuring major a is It 2006. Q2 in market the to delivered After thoroughly After analysing various approaches to the chal lenge, our was response to first drop to prices our increase factors the of one was This marketplace. the in attractiveness that our reduced top line its in nega Q3 and Q4. However, customers in growth net positive a by offset was impact tive and domains that will benefit us in the longer perspective. Now why is that? The picture is somewhat complex but over but complex somewhat is picture The that? is why Now became that market the in pressure price real a was there all during the spring of 2005. apparent and more more CHALLENGE TO THE THE TO RISING RISING - - - - VISION: Gain the position as the preferred Gain the position as the preferred market. in the hosting choice The business model is because attractive comes revenue three- contracts, customer subscription-based from entirely prod provided are Customers recurring. are which of quarters cancelled. unless annually default by renewed are which ucts up front invoiced are contracts and renewed New contracts over booked are revenues and cycle product month 12 the for both of consists revenue recognised Total period. contract the of intake both from stem sales New sales. new and recurring customers. existing to up-sales and contracts customer new with and contracts renewed to relates revenue recurring The vis good a provides it measures prevention churn adequate forecasting. in revenue ibility

- - - - domains by year end 2006. year domains by The company was founded in 1998 as Active ISP in Oslo, Norway. Since then it has grown steadily and been a consoli a been and steadily grown has it then Since Norway. Oslo, in ISP Active as 1998 in founded was company The Netherlands, the in (2002) Ladot Sweden, in (2005) Loopia and (2001) Carambole acquiring by market the in dator Virtual Internet (2003) in the UK, Globe Internet Internet (2004), Club (2005) and CP Online (2005) in the Czech 2004 in 24 Active as re-branded were subsidiaries all and company The Poland. in (2005) Cybernetix and Republic ‘Active’. under the ticker the same year on 12 of November Exchange on the Oslo Stock listed and were year endAt 2005 24 Active had 250 000 and customers 335 000 domains. It aims to have 400 000 registered Company History Company MISSION: combining highly relevant, stand highly relevant, combining with exceptional products ardised and consumer to user-friendliness European small and medium-sized businesses. Active 24 will provide complete complete will provide 24 Active services, hosting and cost-efficient the highly The developed back-office infrastructure. long standing experience and skills of the employees makes web-host the in competitor better a continuously 24 Active ing market. ket knowledge. Economy of scale is an essential key success success key essential an is scale of Economy knowledge. ket for retaining high factor margins on sold. the products Ac daily and production of automation by this achieves 24 tive customers. its to delivery product The Company’s main assets are the human capital and Active 24 has a flexible business model based on proactive development of the development model based on proactive business has a flexible 24 Active cus by represented opportunities upsales leverage to portfolio and service product migration. product tomers’ management, centralised is model business the in core The mar and sales local with strengthened development, product FLEXIBLE BUSINESS MODEL BUSINESS FLEXIBLE

ACTIVE 24 ANNUAL REPORT 2005 | 4 ACTIVE 24 ANNUAL REPORT 2005 | 5 -

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Local country operations country Local representations Sales Re-sellers ambition: Powerful hosting – Surprisingly easy. easy. – Surprisingly hosting ambition: Powerful Active Active 24 is an ICANN accredited reg istrar for generic top level domains and (gTLD’s) a registrar for around 30 country code top-levelmains. Active do 24 continually in troduces new products and services based on customer demand, in line with the complete complete and cost efficient Internet solutions that combine relevant, scalable and and standardised products user-friendliness. Active 24 gives customers the tools they need to focus on their core business and succeed in the marketplace. UK, Sweden, the Netherlands, Poland and the Czech Republic. These offices also serve the serve also offices These Republic. Czech the and Poland Netherlands, the Sweden, UK, Belgium, Germany, Slovakia, virtual in presence Denmark, Finland, Switzerland, France, Spain and Austria. All have local markets language support by provided multilingual has 235 employees. the company and Holland. Today in Sweden staff with consumers and companies sized medium and small provides 24 Active hosting services in Europe. Active 24 provides services throughout fifteen opera fifteen throughout services provides 24 Active in Europe. services hosting tional markets. services hosting Internet of provider pan-European network-independent, leading a is 24 Active in Europe and services provides throughout fifteen operational 24 Active markets. has its the in offices regional from performed is marketing and Sales Norway. Oslo, in headquarters EUROPE Internet of provider pan-European network-independent, is a leading 24 Active PRESENCE IN IN PRESENCE EXPERIENCE & & EXPERIENCE - - - & Sales SWEDEN KARLSTAD, KARLSTAD, CSD, Marketing Marketing CSD, > Born 1964 Larsen holds an Engineering degree from NTNU, Trondheim (1983) and has more than 25 years experience from the IT industry. After some years as researcher at Institute fro En and university ergy Technology IT-teacher, Larsen has since 1990 held senior management positions in companies several including Texas Instruments, Mo Norway, Computer Compaq from experience broad has Lund industries, Tech High and IT the inter multiple in worked having management and sales, national and European both in capacities international He markets. jump up building by career his started the Eastern European and CIS opening its upon directly markets for Sony Europe International. As VP Sales and Marketing for leader in Sennheiser, high-tech > Born 1960 & Sales CZECH CZECH REPUBLIC CSD, Marketing Marketing CSD, & Sales HOLLAND CSD, Marketing Marketing CSD, JAN SVERRE LARSEN SVERRE JAN Officer Operating Chief 2001 in until from Active he started gul and Telecomputing the beginning of 2004. in 24 LUND ESPEN Officer Commercial Chief sales, managed Lund technology, wireless and systems audio 3com, At worldwide. subsidiaries its all and service marketing, was he networks, and infrastructure IT of provider leading a Managing Austria, for Director Germany, and Switzerland. Administration in Business degree Lund holds a Bachelor’s from Oslo Business School and an Master of International Management from Thunderbird, USA. He joined Active24 in January 2006. ------Back Office Executive Management Executive OSLO (HEAD OFFICE) (HEAD OSLO Departmental Management Departmental Sales SWEDEN Marketing & Marketing VESTERÅS, VESTERÅS, UK Sales since 2003 where he is responsi is he where 2003 since accounting and finance all for ble Chris group. the within M&A and PR/IR of charge in also is tensen all in board the of member a and Christensen has a degree in Engi in degree a has Christensen Technical Gothenburg from neering from MBA an and (1990) Institute (1993) School Business Oslo the manage strategy, in specialising ment and finance. Christensen ASA 24 Active of CFO been has Zuiderveld has an Economics de Economics an has Zuiderveld gree from Erasmus University, his began and (1989) Rotterdam in marketing and sales in career Rank Xerox. He subsequently held sales and management and Telecom British in positions Ver joining before Telecom KPN held he Versatel In 1998. in satel positions, management various spe with director group was and network the for responsibility cial Marketing & Marketing > Born 1964 > Born 1967 Sales POLAND Marketing & Marketing THE MANAGEMENT THE operation and structure, and built a profitable organisation of a a of organisation profitable a built and structure, and operation as years 4 worked Christensen company. production successful Finans. Frogner of broker financial and Director Marketing subsidiaries. Previously Christensen served as Business Con Business as served Christensen Previously subsidiaries. to prior Oslo in Marine Hudson of Director troller/Managing Hudson, to Prior Philadelphia. in Marine Hudson of CFO being of Opus Director as Managing 2 years served Christensen internal all reorganised he period this During System. Sound Chief Financial Officer Officer Financial Chief roll-out in Germany. In 2001 he joined Ladot, which was in 2002. 24 Active by acquired CHRISTENSEN THOMAS JAAP ZUIDERVELD JAAP Officer Executive Chief

ACTIVE 24 ANNUAL REPORT 2005 | 6 ACTIVE 24 ANNUAL REPORT 2005 | 7 ------efficiency and focus im focus and efficiency plementation of the go- the of plementation To reduce cost, increase increase cost, reduce To to-market strategy, the to-market strategy, executive management will be centralised at the company company headquarters in Oslo. Only sales, marketing marketing sales, Only Oslo. and customer service will be be will service customer and operated locally or regionally. regionally. or locally operated Data center consolidations and and consolidations center Data synergy take-out in acquired companies will continue as pre as continue will companies viously planned and will ensure cost reductions of MNOK 10. of MNOK 10. reductions cost new loyalty program. The program program The program. loyalty new uct uct offerings, but also through a benefits more customers give will through the vastly improved prod improved vastly the through This will be addressed not only LOYALTY upgrades. product more for centive reducing churn reducing and an creating in One of the main ambitions this year year this ambitions main the of One through revenue increase will be to ness through administrative simplicity. simplicity. administrative through ness over time to boost their willingness to stay with Active Active with stay to willingness their boost to time over low Active low 24 Active to capitalise on its strengths and to achieve 2006. goals for its 24. The proclaimed target for 2006 is to reduce churn levels levels churn reduce to is 2006 for target proclaimed The 24. from 28 % a to business a 24 model %. perspective, From in reduction percentage customer attrition has im greater portance than a percentage increase in new sales. This is and recurring is revenue 24 Active of quarters three because keeping than higher is customers new attracting of cost the ones. existing al will measures other and strategy go-to-market new The The goal of the new go-to-market strategy can be summed be can strategy go-to-market new the of goal The will 24 Active simplicity. and completeness words; two in up delivera product in completeness audience target its provide friendli user of degree highest the ensuring still while bles, - - - -

KEY OBJECTIVES 2006 strategy • Implement• new go-to-market customer segments; home and business • Channel• marketing into 2 clear

• Focus• on organic growth process and product administration • Simplify• customer’s purchase - in 2006 • Further• cost reduction of MNOK 10

• Reduce Churn from 28% to400 24% 000 • Increase• number of domains to - - -

customers will be able to try out the full range of Active 24 24 will be of able try Active to out the full customers range period. a limited for products • Home Active • Business Active Active packages, product new the of quality the improve To 24 will launch “My administra a Account” comprehensive perform easily to customers all enable will that interface tive Account, My From administration. and enlargement product will deliver an industry-best prod industry-best an deliver will rich the be will This 2006. in customers its all to offering uct pricing current of boundaries the within offering product est segments. SME and consumer the for tailored and schemes, The entire 24 Active product portfolio will be transformed packages: distinct two into As Active 24 has reached critical mass in its operations, securing recurring (re revenue newal of contracts) now has than importance long-term higher boost To customers. new of intake company the longevity, customer user portal “My Account”. 000 400 reach to is goal The registered domains by year- end 2006. REALIGNED PORTFOLIO An aggressive domain pric domain aggressive An ing strategy will support growth strategy. the overall The purpose of this pricing scheme is to attract more customers to the Active 24 organic growth. Management will demon Management growth. organic through performance key strate relevant the indicators scalability of the business model by achieving organic growth of the customer base. Active overall 24’s goal is to increase shareholder value com increasing by performance financial improved through and pany revenue net result as well as posi strengthening tions The in company will markets. targeted processes, internal its streamline to continue on focusing while organisation and products STRATEGY BUSINESS BUSINESS - - - - - WEBSITES and mail These by are backed servers. moni firewall, like services value added VPN and statistics maintenance, toring, communication. • PRESENCE Active 24 delivers a comprehensive portfolio of hosting services. They from simple range hosting to complex server space, disk scalable with hosting side components and script support, bandwidth consumption and service level agreements. 24 Active also pro tools, builder website distinct two vides e-commerce placement, engine search solutions and online picture albums. The high-end offerings range from automated dedicated to servers man a 24 aged Active provides full servers. of range server types, including data base web fileservers, servers, servers, servers co-location servers, streaming -

DOMAINS main registration and administration engine. • IDENTITY top-level 30 than more offers 24 Active these of Most countries. 15 in domains are country speciﬁc domains like .no generic provides also 24 Active .se. and through .org and .net .com, like domains do fully automated a state-of-the-art OF DELIVERY OF tools with the internet and small businesses consumers provides 24 Active port needs. A ﬂexible communication internet meet everyday need to they as their needs grow. easily upgrade to customers allows folio PILLARS PILLARS 5

ACTIVE 24 ANNUAL REPORT 2005 | 8 ACTIVE 24 ANNUAL REPORT 2005 | 9 - - - -

BACKUP CRM, ERP TOOLS COLLABORATION mum uptime and quality of service. Fur service. of quality and uptime mum 24 thermore, bit-level Active provides incremental backup in a secure data insurance regeneration data and center, in partnering international an through company. surance • Active 24 Active enables customers to work from a mobile anywhere at office, any Mi access to able are Customers time. intranets, on documents Office crosoft and tools collaboration online use to and document without storage needing a citrix). client or similar (e.g terminal • • SECURITY provided are services and products The with infrastructure redundant fully a via double components, to ensure maxi MOBILITY We solve Complexity Complexity solve We by offering Simplicity. Simplicity. offering by We offer completeness. completeness. offer We - EMAIL relationship management via a web in web a via management relationship invoicing integrated an featuring terface system. • COMMUNICATION IMAP, like standards supports 24 Active POP3, web mail and Microsoft shared shared calendar, shared (with exchange web Outlook and tasks shared contacts, spam and antivirus including all access), customer enables also 24 Active filters. A REFOCUSED PORTFOLIO

In April 2006 Active 24 launches its new go-to-market strategy and a redeﬁned offering that consists of two of the most competitively priced and complete hosting packages in the industry. Active Home and Active Business are tailored to the needs of the consumer and business segments.

Active 24 began creating a new market segmentation strat- the low end and service at the high end, with profit as among egy in autumn 2005. This was directed by a customer survey the highest priorities in the current climate.” Source: IDC that confirmed the moves being made by leading industry players to differentiate their hosting products. The survey The new Active Home and Active Business packages lever- revealed that the core of Active 24 customers are willing to age the full strength of the Active 24 product portfolio to pay a premium for complete solutions providing domain and deliver the most complete hosting offering in the market. hosting with web-based CRM systems, accounting systems, An optional web-based product suite, delivered by 24Seven- backup and online sharing of documents, tasks, addresses Office, adds modules for accounting, customer management and files. Easy administration and quality customer service system, email and calendar, invoicing and project manage- were also key factors for customer satisfaction. ment. All these modules are fully integrated and, due to an award winning web technology, they work as fast as a locally By using the full strength of the Active 24 product portfolio, installed application. companies gain an Internet presence that will generate new business opportunities and give value for money. “Active 24 and 24SevenOffice now offer the most complete suite of web-based ASP services to the business market in Industry experts like IDC also predict that the business host- Europe. Web-based business solutions, with SalesForce and ing market is following the direction of consumer hosting. Netsuite in the lead, accelerated in the US marketplace at the Therefore, success within the SME market relies on delivering end of 2004 and this growth is expected to reach Europe in flexible bundled solutions with efficient admin and customer 2006. Active 24’s extensive customer base combined with service. 24SevenOffice’s cutting edge web technology give us the strength to become the leading provider of web-based ERP “For services already or soon to become commodities, move systems in Europe. At 24SevenOffice we are confident that to a commodity pricing model, but hold prices at premium our joint venture with Active 24 will be a great success”, says levels for premium services, to aim for profit and to avoid Stian Rustad, CEO, 24SevenOffice ”crash material” signals to the market. Compete on price at

methodology for management of IT infra- All these guidelines are controlled and Research and structure. So has Active 24. The primary tracked through available tools like As- distinction between the two is that while syst, Microsoft Project and Microsoft development ISO 9002 requires structured processes to Sharepoint. Active 24 has a multi-site R&D depart- be in place, ITIL deﬁnes speciﬁc processes All new software used by Active 24, ment with presence in Oslo, Karlstad for the IT environment. such as the new web administration in- (Sweden), Hilversum (Netherlands), Lon- terface and provisioning environment, is don and Prague. By using Microsoft .NET Active 24 uses ITIL guidelines for; based on Microsoft .NET technology. It 2.0 technologies in the development plat- • Service Level Management follows the standards and methodology

ACTIVE 24 forms, developers can utilise programming • Incident Management deﬁned by Microsoft Framework, such as coding principles, documentation princi- themes. This means that platform changes • Problem Management can easily be performed at various deploy- ples, version control, etc. • Change Management ment levels, from white label partners all Active 24 is moving towards industry

ANNUAL REPORT 2005 the way to single customers. • Disaster Recovery Planning standards at all levels of the company. The traditional quality management • Conﬁguration Management This will improve overall quality and en- hance access to resources, lower costs and system for organisations is ISO9002. In • Project Management recent years, many major organisations better adaptability. have adopted the ITIL framework as their | 10 MY ACCOUNT Integrated in the new products, My Account is a new online • Webmail control panel that gives customers and users easy access to • Administration Active 24 services. It allows basic users to complete common • Add/upgrade services tasks using wizards while giving advanced users detailed • Focused support conﬁguration levels.

Product Delivery Model

INTERNET CONNECTION > DOMAINS > CONSUMER OFFER > BUSINESS OFFER > HIGH END SOLUTIONS

Provider Country Generic • Domain included • Domain included • File servers independent .no .com • Web hosting • Web hosting • Data base servers .se .net • E-mail • E-mail • Streaming servers .nl .org • Spamfilter & AntiVirus • MS SharePoint • Mail servers .pl .biz • Blog • Spamfilter & AntiVirus • Backup servers .co.uk .info • Site builder • SQL • Hosted exchange .co.org .as • Net Album • Blog servers .cz .nu • My Account • Sitebuilder • Application servers .fr .cc • ERP systems • Co-location servers .as • CRM .fi .dk Internet Domain Registration Shared Hosting Shared Hosting Dedicated Hosting connection

facilities in Amsterdam, Holland. High security “By combining industry leading hardware and qualiﬁed and reliable security, In today’s world businesses are exposed to Active 24 will at all times ensure that your an ever-increasing array of threats on the hosted solution and data is safe and se- internet. Servers hold data that often re- cure,” says Alexander Friedensburg, Direc- lates to a company’s transactions, services tor of Operations at Active 24. and clients, and losses can be critical. Active 24 uses Norway’s leading high- The importance of security is never security data center for storage and more obvious than when it is lacking. With maintenance of its server park. Owned by Active 24, security is always present. Ac- DigiPlex, the facility is ISO 9001:2000 cer- ACTIVE 24 tive 24 places security in the driver’s seat tiﬁed and offers the best available secure, with a state-of-the-art network operation climate-controlled environment. center staffed by senior technicians that monitor servers and services 24 hours a “Human expertise combined with so- ANNUAL REPORT 2005 | phisticated technological security sys- day, 365 days a year to ensure that secu- tems ensure that Active 24 gets the rity and reliability is maintained. optimal protection level that they re- All Microsoft-based shared hosting is quire,” says Sales Director Kjetil Ertnaes located in Oslo, Norway, while all Linux at DigiPlex. hosting is provided from equally modern

11 ACTIVE BUSINESS Active Business is a complete set of tools for SMEs that want to leverage the • 2 GB web hosting full commercial potential of the Internet. • 200 email accounts • 1 domain name • 10 MB SQL • Active Blog & Net Album • Active Sitebuilder • Antivirus & spam ﬁlter • SharePoint • My Account

ACTIVE HOME

• 1 GB web hosting • 25 email accounts • 1 domain name • Active Blog & Net Album • Active Sitebuilder • Antivirus & spam ﬁlter • My Account Active Home gives consumers what they need to enjoy all the beneﬁts of the Internet.

“We are handling share based payments for employees in large corporations and we handle large volumes of transactions for ACTIVE 24 employees, handling their salaries, beneﬁts and options or share based payments. To be able to do that we need a web solution that can be online 24

ANNUAL REPORT 2005 | hours a day and that is accessible from anywhere at any given time. Active 24 is for us the only way to achieve this.”

– CEO Arne Peder Blix in Norse Solutions AS

12 ACTIVE BUSINESS WHAT’S IN IT FOR YOU? ers to leave comments on what you publish DOMAIN SHAREPOINT in your blog. • 2 GB web hosting A good domain name is the Your publications can be either text, voice, or Active SharePoint is a professional • 200 email accounts starting point for every great even a video, and can be entered through the online workspace and communica- online success story. To define a good do- blog tool, an email or even from your mobile tions center. Features such as document archive • 1 domain name main name you can say it should be short, phone as an MMS. with version control, task lists, news, forums, • 10 MB SQL simple, smart and suitable; short and simple protected areas, shared contacts, shared calen- because it’s easier to remember, smart and dars and full user access control makes working • Active Blog & Net Album suitable because it should describe you or NET ALBUM together as a team a breeze. • Active Sitebuilder your content as close as possible. Active Net Album is your online Workspaces are accessible from any compu- photo album complete with up- ter with an internet connection, and there is no • Antivirus & spam filter WEBHOSTING loading and commenting features. Publishing limit to how many workspaces you can create, photos has never been faster and easier. • SharePoint A businesspage is only as good as which makes SharePoint perfect for project- Photos are automatically organised when • My Account the hosting. If your site is often in- based work, and gives you the ability to easily uploaded, and you may even upload your pho- hand out access to a specific workspace to accessible, the visitors won’t be coming back. tos in an email or from your mobile phone as Active 24 provides stable and secure hosting external resources when needed. an MMS. to back your site, and our dedicated support Fully integrated with Office 2003, this is the Write comments or let your visitors com- team makes sure it stays that way. perfect companion when working both inside ment your pictures themselves. Daily backup is included, as well as the ability and outside the office. to customise the amount of disk space any time you like in your online account manager. SQL SITEBUILDER The optional Microsoft .NET integration for SQL database provides a reliable Sitebuilder helps you create, pub- advanced users makes it easy for you to build way of storing and retrieving data lish and update your website with- your projects online. for your dynamic pages and online develop- out the need to buy software or learn how to EMAIL ment. program. It supports images and text styles, You can choose between Microsoft SQL on and comes complete with a set of ready-made Communicating via email has never Windows and the open source alternative data- templates to get you started fast. been easier. Active Email comes base MySQL on Linux. Whichever you choose, complete with Antivirus to ensure that your Active 24 SQL provides you with the power you emails are safe to read and Spamfilter to keep need to store and retrieve data in a secure way MY ACCOUNT junk mail out of your inbox. on a powerful backend. MyAccount is a next generation If you are away from your computer you service control system, it is here can still read and send your emails using web- you activate and make changes in your prod- mail. SPAMFILTER & uct setup to make your internet presence suite Backup is included, as well as the ability to ANTIVIRUS you the best way. customise the amount of disk space and email Antivirus and spamfilter are in- MyAccount is web-based and very user accounts any time you like in your online ac- stalled on all our mail servers and are fre- friendly where the user switch between two count manager. quently and automatically updated. modes: Simple & Advanced. The server based applications stop viruses This tool is included for free in all services and spam from reaching your computer. that you order from Active 24. BLOG You can easily decide your own spamfilter Blogging is a fast way to share your level so you receive just the emails you want. thoughts, dreams and stories online. It also makes it possible for your read-

Partner program OEM / Active 24 has an extensive network of 2500 White label Deals resellers and partners throughout Europe. The partner program allows companies Active 24 has set up white label agreements to resell Active 24 products and receive a in both the UK (Lighthouse) and Norway commission on the sales. The commission (Findexa). White label partners are able to rates vary from 20 to 40 percent and are de- sell the complete Active 24 product portfolio pendent upon the partner level. Partners are to their customers under their own brand provided with web tools to simplify adminis- and to use the fully automated provision- ACTIVE 24 tration of the customers they bring in. Sales ing functionality. Specific revenue sharing commissions are automatically paid to part- agreements are established on an individual ners quarterly. Premium partners get first basis, subject to expected sales volumes. access to new products and an opportunity Active 24 will continue to pursue this sales ANNUAL REPORT 2005 | to influence product development at Active channel actively in the coming period. 24. There is also a reseller program option which is similar to the regular partner program in all aspects except that it allows the reseller to handle invoicing themselves.

13 - - The webhosting industry has been growing for many years and years many for growing been has industry webhosting The about a third of all host names are European. European host the of More trend. global the of reﬂection fair a is growth name future global growth is likely to occur in developing countries, to It is expected is not still saturated. market but the European coming the in growth lower somewhat though continued, a show 26 has and been 29 between Global names growth host years. % the past Though years. this has remained 24 stable, Active assumption growth market name host conservative a made has of 15 % in 2006. the from Data German Denic that shows the national top-level 26 by % in in grew average markets domains 24 core in Active which of 2005, in % 34 of growth domain a had 24 Active 2005. and 12 % organic. acquisitions through 22 % was Market demand has increased steadily during past years and and years past during steadily increased has demand Market 24 the Active expects domain and web hosting market to is growth volume The 2006. in volume in % 15 least at grow conse and margins, and prices lowered by offset somewhat added- unique providing of importance the highlights quently in the marketplace. that differentiates services value FACTORS SUCCESS hosting the in success determine that factors many are There Some primarily industry. companies compete on but price, there are a multitude ofthat factors determine a hosting identiﬁed has 24 Active term. long the in success company’s product completeness, ease of use and reliable customer service in as factors, additionsuccess key to satisfactory and uptime. of security levels achieveTo these deliverables, Active 24 draws on supe rior technological know-how gained through many years

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�� successful in the marketplace. in the marketplace. successful Market surveys performed by Active 24 indicate that invest that indicate 24 Active by performed surveys Market rev customer average current exceeds far willingness ment enue but levels, and this products willingness presupposes With customer. the for added-value sufﬁcient with services easier to providing use and the strategy new go-to-market complete product packages, 24 Active believes it has the and unique both be to services desired of combination right revenue revenue has declined as a relative share of total revenue. Simple web site hosting is also increasingly becoming a commodity withproduct 24 prices. Active lowered reports on three important to indicators performance the market; and customers. number of domains, hostnames The general market conditions are good. However in 2005 Active 24 experienced experienced 24 Active in 2005 good. However are conditions market The general products. on entry-level pressure price ways. various in understood be can market hosting web The provides which domain, a universally is product entrance The an identity on the web and visibility to the entire Internet domain and dropped have domains on Margins community. ABOUT THE MARKET THE ABOUT

ACTIVE 24 ANNUAL REPORT 2005 | 14 ACTIVE 24 ANNUAL REPORT 2005 | 15 - - - - In Europe, the highest growth rates are found amongst pure host pure amongst found are rates growth highest the Europe, In fact the to due probably retracting, are Telco’s The companies. ing growth 24 Active The business. core their not is hosting web that growth. and organic acquisitions equally from resulted of 19 %. domain growth an organic expects 24 In 2006, Active As 24 Active has confidence in the current product portfolio, general given target reasonable a is mark domain 000 400 the In addition, conditions. the new .EU market domain, which has positive a have to expected is 2006, April in launch complete its half of 2006. in the second on domain growth impact RISK FACTORS The hosting industry is based on that deliverables rely on relating risks to exposed therefore is and software third-party systems redundant employs 24 Active reliability. software to Ac factors. these from risk reduce to schemes back-up and fluctuation to sensitive particularly considered not is 24 tive fluctuations in in the economic situation. general However, can rates exchange foreign and rates inflation rates, interest 24’s Active of % 70 Since levels. profit company’s the affect to is exposed the company currencies, is in foreign revenue substantial risk currency and will periodically show foreign account. and loss profit in its items exchange there are risks relating to prices and margins. Further, Al commod on pressure price further expects 24 Active though will 2006 in strategy go-to-market planned the products, ity focus on the uniqueness and in completeness the offering. pressure. price to exposure the portfolio’s This will reduce

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�� loyalty and longevity. and longevity. loyalty Business. Going into 2006, 24 Active has the financial and technical its in ambitions growth the on deliver to necessary strength improve to be will 2006 in Focus strategy. go-to-market new well as packages, product the of usability and delivery product customer increase to and service customer strengthen to as matchcustomers’ demands. These skill sets also underpin the company’s renewed focus on delivering added value in customer service and support. Active 24’s success in these endeavours will be measured on key performance indicators and relies heavily on the market’s perception of the new product packages, Active Home and Active of web-hosting experience. The company’s highly skilled staffhas enabled it to migrate to second generation host ing services. Likewise, Active deep24’s knowledge of its localmarkets has allowed it to grow a product portfolio to - - - - - Thomas Christensen Chief Financial Officer Chief Financial ing will make our immediate performance more accessible to to accessible more performance immediate our make will ing predictability. and visibility increase and market the subject to impairment testing once a year. Secondly, option Secondly, year. a once testing impairment to subject profit the in expenses personnel as recognised were expenses 2005 in allocation cost option IFRS The statement. loss and of MNOK 2.4. P&L effect had a negative During the by we our year consolidated structure company four our also and UK 24 Active into Internet Virtual merging in Holland. subsidiaries Going into 2005 we communicated an active acquisition by promises our to up lived we that believe we and strategy acquiring companies in a good combination of established acquisitions, strategic various made We markets. growing and being the most interesting two with Loopia and Cybernetix expe have companies Both potential. term long of terms in profitable Sustained acquisition. since solid rienced growth growth will be by facilitated utilising the 24 Active advan tages of theare integrating scale. companies acquired We should This deals. supplier and platforms technical our with to due savings longer-term and savings cost immediate give improvements. organisational invoiced our reporting start will we 2006 quarter first from As Invoiced market. the to chargeback and revenue deferred sales, reported today’s in period contract the over periodised are sales the understand to difficult it makes This revenue. recognised report expanded the believe We performance. sales quarterly cost reductions cost due to lower maintenance and operational the At outset costs. of 2005 we the predicted need for in in vestment new and data of centers replacement the ERP Our systems. 2005 spending was in line with our CAPEX depre accumulated the expect We MNOK. 15 of expectations MNOK 12 this, Of MNOK. 32 to amount to 2006 in ciation to relates depreciation of intangible customer base assets companies. in acquired Financial International new the with year first our was 2005 impacts major two had has This (IFRS). Standard Reporting but depreciated, longer no was goodwill firstly, books: our on - - ��

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�� reductions and I am pleased to report that we reduced operational operational reduced that we report to I am pleased and reductions 2004. MNOK from 16.7 by costs CFO KEYNOTE CFO of 15-20 MNOK in cost target setting a clear began 2005 by We The implementation of Navision as our new ERP system has has system ERP new our as Navision of implementation The and reporting, of ease control, customer improved provided revenue of MNOK to 214.7 211.9 revenue in compared 2005 and an The 2004. in MNOK -2.1 to compared MNOK, 19.6 of EBITDA 2004, from improvement vast a was % 9 of margin EBITDA lower to due %, 18 of target our behind well was it however Our than net revenue. expected cash ﬂow from operations investments to relates cash in reduction The 3.1. MNOK was made. the acquisitions and to centers data in the new sure, sure, inadequate attention to customer retention, altered system ERP new the with conjunction in principles booking and new reduced sales combined to negatively impact the 2005 target. Our reported growth was revenue 1 % while we a of experienced growth negative proforma 5 % due to recognised 2005 achieved We factors. mentioned above the As 2005 it progressed became increasingly clear that our growth target of revenue 15 % was not viable. pres Price to streamline our business and increase the focus on our core core our on focus the increase and business our streamline to process business these anticipate We 2006. in with competencies reduction cost MNOK 10 further a give will improvements ambitions. growth our meet to ability our impacting out Factoring in our multiple acquisitions in 2005, the proforma cost cost proforma the 2005, in acquisitions multiple our in Factoring continue will We %). (19.1 MNOK 33.5 to amount reductions DISCIPLINE FINANCIAL FINANCIAL

ACTIVE 24 ANNUAL REPORT 2005 | 16 ACTIVE 24 ANNUAL REPORT 2005 | 17 ------

well positioned to leverage on this trend being one of of one being trend this on leverage to positioned well mail fledged fully a providing shops one-stop leading the businesses”. European for offering web and – Didrik Kjeldahl Kaupthing. Analyst, Financial player could also utilise Active 24’s tax carry forward forward carry tax 24’s Active utilise also could player losses of MNOK 500, the value of which, given a of tax-level 28%, amounts to MNOK 140. The net plus 16 MNOK thus is purchaser industrial an for cost for price give-away a is This offering. the on premium with revenue in 220 MNOK generates that company a more?” ask for you Can line. bottom a neutral – Stig Myrseth Orion Securities. Chief financial analyst, mar hosting web and domain the both that believe “We be still will pressure price that but further, grow will the ket all market the emerge suppliers New Active present. that highly believe We drop. prices the makes which the time that and market high-end the in positioned well is com 24 the help will offer they that packages and product new competitors from itself differentiate further to pany pay”. to willingness customer’s the increase thereby – Thomas Nielsen Fondsfinans. Analyst, Financial move will businesses of number growing a believe “We broad rapid of back the on years coming the in online using are people more and more as and expansion band goods of suppliers locate to point starting their as Google is Active24 pages. yellow the than rather services and Analytical information Analytical Various independent stockbroker and investment regu and 24 Active of performance the follow banks larly publish their objective guidance to the market. share existing and investors potential provides This holders relevant information about Active 24 and risks the and potential the consider to easier it makes the company. in in investing involved a with 24 Active on recommendation buy a be have to “We evaluated is share The 7. NOK of target price share (price/ P/E of exception the with criteria all on attractive we growth top-line and reductions cost With 7 earnings). on P/E a show estimates Our up. pick to profits expect up the out singles This 2008. in 4 to falling year next perspective. longer the in considerable is which side, If financial investors do not spot the value of the and first it do will investors industrial soon, company to valued today is company The 24. Active purchase MNOK 186 at OSE (Oslo Stock Exchange) and with EV an gives this cash, bearing interest net in 30 MNOK industrial profitable A 156. MNOK of Value) (Enterprise

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�� - - - on 1 May 2004. on 1 May strategy during the spring of 2005. This helped to produce produce to helped This 2005. of spring the during strategy % 13 which of 2005, during % 28 of rate growth customer a acquisitions. through and the rest growth organic was The Northern European business segment increased its rec its increased segment business European Northern The the to due mainly 2004, from 4.7 MNOK by revenue ognised however levels, 2004 at remained Costs Loopia. of acquisition Western The Loopia. of purchase the include figures 2005 the 8.3 MNOK by revenue its reduced segment business European Central The figures. 2004 from 22.1 MNOK by costs its and MNOK with revenue its increased segment business European 14.2.* MNOK by increased costs Its 2004. from 8.3 The Group has a strong liquidity position and financial the that confirms aBoard The base. capital working sound statements have been prepared and presented under the assumption of a going The concern. Board is not of aware any material issues occurring after the balance sheet date financial statement. the year-end affect that may THE YEAR FOR OF THE RESULT ALLOCATION MNOK of loss net the that proposes Directors of Board The other paid-in equity. by 2005 be covered for -14.1 IN 2005 ACTIVITIES The year was largely distinguished by a high acquisition Favour operations. tempo to and streamline large projects though demand, increased in resulted conditions market able profitability and hitwere revenue Active by price pressure. 24 theaddressed through price a pressure revised pricing The foreign exchange rate effects of the loans have no cash cash no have loans the of effects rate exchange foreign The Long effects. term debt increased with MNOK 8.6 due to cent data new the building to related investments hardware in Oslo and Amsterdam. ers flow Cash andfrom Cash operations was MNOK cash 3.1. at 2005 year-end compared MNOKwere equivalents 47.6 MNOK of reduction The 2004. year-end for 89.3 MNOK to and acquisitions to related payments to due mainly was 41.7 centers. data in the new investments * Please note that European the business segmentCentral was established * - - -

Significant inter-company loans between the parent company company parent the between loans inter-company Significant off. written not but down written are subsidiaries Group and parent company. Current reorganisations and consolidations will will consolidations and reorganisations Current company. parent probability significant a is there and group, the in costs reduce taxable future with utilised be can forward carry loss one tax that to related goodwill down write to decided Board The profits. 2003) in acquired Ltd; Internet (Virtual subsidiaries UK the of sales. UK expected than lower to due 8.8 MNOK with non-recurring items (severance payment in conjunction with with conjunction in payment (severance items non-recurring Loopia). and bad debt for layoffs of in a MNOK 2005 13.0, were reduction costs Marketing deferred 20.3 MNOK the of 17.0 MNOK 2004. from 4.7 MNOK the to attributable is sheet balance the in retained asset tax FINANCIAL PERFORMANCE for the revenue 24 Recognised Active Group in 2005 was an increase of 1.3MNOK % 214.7, compared with MNOK approximately on based is revenue Recognised 2004. in 211.9 three quarters recurring sales and one quarter new sales. com -13.9, MNOK was 2005 for (EBIT) result operating The to relates 4 MNOK this, Of 2004. in -10.2 MNOK with pared Active 24 Active has headquarters in its corporate Oslo, Norway and Poland Netherlands, the Sweden, UK, the in offices and the Czech Republic and has a virtual presence in 9 other countries. European Active 24 is an ICANN accredited registrar for top-level do top-level for registrar accredited is an ICANN 24 Active country several for registrar authorised an also is and mains 000 250 over has currently company The domains. specific customers, 335 000 domain registered names and hosts 225 000 hostnames. of Internet hosting services to the European market. The web- as such services Internet complete provides company hotel, domain name registration, collaboration tools and database solutions, primarily to small and medium-sized develop the on emphasis great places 24 Active enterprises. ment of solutionsstandardised with a high degree of user and scalability. friendliness REPORT ASA 24 ACTIVE 2005, REPORT ANNUAL 24 Active isASA a leading network-independent provider DIRECTORS BOARD OF BOARD

ACTIVE 24 ANNUAL REPORT 2005 | 18 OLA RØTHE ANTHONY BAY NINA BERNADINA STEINAR SØNSTEBY (born 1960), Chairman (born 1955), Deputy Chairman VLEESCHDRAAGER (Born 1962), Board member Røthe has a Law degree from Oslo University and background as a Bay has a Bachelors degree from BRINK DR. PhD Sønsteby has a degree from Norwe- commercial lawyer. He has experi- the University of California Los An- (born 1953), Board member gian School of Management, Norway geles and an MBA from California (1989), Training in Management and ence from management and board Brink has built various enterprises in work in several listed and unlisted State University San Jose and also human relations from the The Dale attended INSEAD. Bay has over 24 the IT industry, among them World Carnegie Institute, Norway (1990), companies, and is head of his own Online International, that became investment and advisory business years of experience in the IT industry. Master of Science in Mechanical Engi- Bay worked for Microsoft Corpora- one of the largest pan-European neering from University of Utah, USA through his wholly-owned company ISPs. Together with Eric Tolsma she AS Sobona. tion for six years in several executive (1986), and Mechanical Design from positions, including Corporate Vice established Renessence Ventures in Oslo College of Engineering, Norway President and General Manager of 2000. Besides her business activities (1984). Sønsteby has experience in Microsoft’s Digital Media Division she is also a Board member in Aspen different companies. He was CEO in besides being a member of the Mi- Center of New Medicine and Johns SKRIVERVIK DATA AS, Norway from crosoft Corporation Executive Staff. Hopkins University/Scleroderma In- 1995-1996, CEO in MERKANTILDA- Prior to that he worked for eight stitute. Brink is an active investor and TA ASA, Norway from 1996-2001, years for Apple Computer. Bay is a manages her investments through CEO in Eterra AS from 2001-2003, board member of CMGI Corpora- the company Renessence Ventures Executive VP and COO in EMENTOR tion and Loudeye Corporation, both which is the second biggest share- ASA from 2003-2005 and was CEO companies listed on NASDAQ in the holder in Active 24 ASA. in TopNordic AS. He is currently VP United States. in Ementor Norway

CARY FITCHEY NIGEL KENNETH WILSON HANS PETTER BJERVA HÅKON WELDE (born 1952), Board member (born 1958), Board member (born 1978), Employee repre- (born 1973), Observer to the Fitchey has a degree in finance, ad- Wilson is a UK Chartered Accountant sentative Board ministration and management and an who worked at Elkem before joining Bjerva has been in Active 24 for four Welde is IR Director in Active 24 MBA from the University of Michigan the management of the Oslo Stock years and has been a representative and has been with the company (1976) and a BSIM from Purdue Uni- Exchange. Subsequently he worked for the employees on the Board of since 1999. In his previous Active versity (1974). Fitchey serves as the extensively in the financial services Active 24 since August 2003. He 24 positions, as Customer Serv- Chairman and Chief Executive of Eu- industry as an international partner ropean Capital Ventures plc. Fitchey has expertise in the domain business ice Director, Program Manager for Arthur Andersen and CEO of a area of the Nordic and UK region and and Business developer, he was is also the Senior Managing Director fund management start up in Nor- of St. Cloud Capital Partners LP. He serves as a Senior Hostmaster in the involved in project management, way, ODIN. Wilson joined ProCorp in was formerly a Managing Partner of Business Unit Domain department at system integration, product de- 1999 as CEO and Managing Partner. FG II Ventures, and a Partner with the office in Oslo. velopment and M&A. Prior to ACTIVE 24 Dartford Partners LP. Previously, From 2005 he has been the CEO of joining Active 24, Welde worked Fitchey was the Managing Director Foinco. at ICL, Holland. He is currently of Triad Partners, Ltd. Fitchey was an observer to the board of also an executive for PepsiCo and a

Directors at Active 24. Welde ANNUAL REPORT 2005 | Partner with A.T. Kearney and Stra- holds a cand.polit from NTNU, tegic Planning Associates. He is a Trondheim with a specialisation member of various Boards. in political science from the Uni- versity of East London.

B o a rd Re m u n e ra t i o n : Fe es to t h e m e m b e rs o f t h e B o a rd fo r t h e a cco u n t i n g year 2 0 0 5 were s e t a t N O K 3 0 0 0 0 0 fo r t h e C h a i r m a n , N O K 1 5 0 0 0 0 fo r shareholder-elected Board members and NOK 75 000 for the employee representative.

19 - - - - - Hans Petter Bjerva Hans Petter Steinar Sønsteby Steinar basis for sustainable and profitable growth. However, these these However, growth. profitable and sustainable for basis involved uncertainties usual the to subject are expectations of impact the and developments market future predicting in the company. by plans executed breakdown is 72 % male and 28 % female. There are currently currently are There female. % 28 and male % 72 is breakdown con 24 Active but positions, management top in women no senior and general for apply to women encourage to tinues legislation Norwegian of the is aware Board The positions. on women of representation % 40 minimum a stipulates that measures take will and 2008 January 1 by boards companies’ regulation. this with complies company the that ensure to FUTURE PROSPECTS posi be to 2006 for outlook general the considers Board The and continue, to conditions market favourable expect We tive. through focus market increased and cost-reductions planned to profitable to contribute strategy the new go-to-market growth. In 2006 Active 24 will focus on organic The growth portfolio. product the of strength the leveraging through gen will growth customer projected the that anticipates Board 2006. of half second the in starting revenue improved erate The 2006to Board expects remain revenue recognised at expected than lower of consequences the due level 2005 the invoiced sales in 2005. Nonetheless, the organic growth in achieved 2005 the gives in Board confidence the attrac impact The forward. going portfolio product the of tiveness fully be first however will 2006 in growth sales expected of ap that believes Board The accounts. 2007 the in reflected the provide to 2006 in taken been have measures propriate significant injuries or accidents occurred during the operation operation the during occurred accidents or injuries significant 2005. in of the business 259 to 235 from increased Group 24 Active the in Employees salary average The acquisitions. to due mainly 2005, during gender group’s The 995. 206 NOK approximately was paid - - - Ola Røthe Jaap Zuiderveld Cary Scott Fitchey Scott Cary Chairman of the Board Oslo, 31 March 2006 31 March Oslo, Chief Executive Officer Chief Executive Nina Brink Nigel Wilson Anthony Bay Anthony Deputy Chairman Deputy ness was 3.64 % of the total working hours for the period. No No period. the for hours working total the of % 3.64 was ness the company. the company. ISSUES AND PERSONNEL ENVIRONMENTAL Active 24 ASA and Active 24 operations Group’s do not negatively impact the external environment. The working sick to due Absenteeism good. is group the in environment would be based at the headquarters in Oslo. in Oslo. be based at the headquarters would EMPLOYEES FOR INCENTIVE PROGRAM granted was options 000 867 of total a 2005 November In when 24 a Active introduced new 2 year options program. and directors of board the to granted was options 000 360 in employees key selected to granted was options 000 507 Microsoft hosted Exchange to the portfolio. the portfolio. to Exchange hosted Microsoft ORGANISATION in centers customer with regionalised was Service Customer ongo the of part a As Holland. and Republic Czech Sweden, management executive that decided was it consolidation ing locations, Oslo for hosting Windows and Amsterdam for all replaced software ERP Navision Microsoft hosting. Linux group-wide A systems. ERP/CRM proprietary company’s the in Norway. established was center operating network Additional 2005 highlights thewere signing of as Findexa of addition the and partner, OEM label white major first the strengthening its leading position in the Czech market. Further Further market. Czech the in position leading its strengthening Loo company, hosting web largest Sweden’s of acquisitions and July. in May followed in Poland, pia, and Cybernetix also and program restructuring cost-reduction 24’s Active two in consolidated were centers data Its 2005. in continued Active 24 continued its strategic geographical expansion in expansion geographical strategic its 24 continued Active Republic Czech two of Acquisition 2005. in markets growth Online, CP and Ltd Club Internet companies, hosting based

ACTIVE 24 ANNUAL REPORT 2005 | 20 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 21 – – 0,51 0,54 -125 2003 -1 394 -6 882 16 919 16 919 16 919 50 860 -40 828 -67 289 -19 613 -52 007 -19 768 -14 173 168 370 166 976 166 976 -186 744 NGAAP – – -0,46 2004 -0,51 4 672 20 170 30 960 -36 750 -16 580 -16 580 -42 803 -95 159 -13 208 -13 442 -65 049 -17 785 -49 925 207 204 211 876 211 876 -229 661 – – -0,25 2004 -0,27 4 672 -9 011 -9 011 -2 608 20 170 30 960 -29 181 -42 803 -98 423 -13 208 -65 049 -10 216 -49 925 207 204 211 876 211 876 -222 092 IFRS – -0,35 2005 -0,37 7 323 -8 771 10 717 -14 087 -14 086 -14 086 -48 354 -84 669 -13 800 -10 853 -62 188 -13 959 -10 845 207 353 214 676 214 676 -228 635 8 9 9 2 1 15 15 10 12 17 17 1, 2 Note (All amounts in ‘000 NOK) (All amounts Diluted result per share (in NOK) per share Diluted result Ordinary result for the year for result Ordinary the year for Net proﬁt (in NOK) per share Result Other interest income Other interest expenses Other interest taxes before result Operating Taxes Write-downs expenses Other operating expenses operating Total result Operating Total recognised revenue recognised Total of sales Cost Expenses Payroll assets tangible Depreciation assets intangible Depreciation Revenue Revenue Deferred Net Revenue PROFIT & LOSS, GROUP & LOSS, PROFIT 1 830 6 790 NGAAP 28 538 20 474 21 570 72 412 36 674 12 133 89 252 144 849 217 261 31-12-04 1 830 6 790 39 372 20 474 21 570 83 246 36 674 12 133 89 252 144 849 228 095 31-12-04 IFRS 5 994 45 955 20 298 34 394 31 614 12 209 13 116 47 600 106 641 104 539 211 180 31-12-05 1 1 8 2 6 11 Note Total assets Total Accounts receivables Accounts expenses Prepaid of goods sold cost Deferred and bank deposits Cash assets current Total Goodwill, customer base and patents Goodwill, customer Software asset tax Deferred and computers machinery Equipment, assets non-current Total assets Current (All amounts in ‘000 NOK) (All amounts ASSETS assets Non-current BALANCE, GROUP BALANCE,

ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 22 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 23 – – – 521 3 711 9 014 9 014 3 514 49 015 53 247 53 247 15 746 79 196 17 384 39 160 NGAAP 217 261 155 000 164 014 31-12-04 – – 521 3 711 9 014 9 014 3 514 Hans Petter Bjerva Hans Petter Steinar Sønsteby Steinar 64 080 15 746 79 196 17 384 39 160 228 095 652 065 656 297 155 000 164 014 31-12-04 -592 217 IFRS – – – 3 827 7 999 54 580 17 659 17 659 15 351 77 371 15 480 22 740 211 180 654 410 658 237 138 941 156 600 31-12-05 -603 657 7 3 8 9 18 Note Ola Røthe Jaap Zuiderveld Cary Scott Fitchey Scott Cary Chairman of the Board Oslo, 31 March 2006 31 March Oslo, Chief Executive Officer Chief Executive Nina Brink Nigel Wilson Anthony Bay Anthony Deputy Chairman Deputy Other short-term liabilities Other short-term liabilities current Total liabilities Total and liabilities equity Total Current liabilities Current creditors Trade payable Taxes payable duties Public revenue Deferred customers Preinvoiced LIABILITIES debt Long-term liabilities Other long-term liabilities long-term Total Paid in, but not registered share capital share in, but not registered Paid in group / Other equity reserve premium Share equity restricted Total earnings Retained equity Total EQUITY AND DEBT EQUITY EQUITY equity Restricted capital Share (All amounts in ‘000 NOK) in (All amounts – – – – – 83 521 748 401 2004 -271 6 742 -3 044 -6 304 -7 571 -6 419 NGAAP 23 354 23 875 81 762 89 252 89 252 26 699 13 136 24 427 10 322 -36 750 -13 170 -14 344 -33 449 – – – 83 521 748 401 2004 -271 6 742 3 264 -3 044 -6 304 -7 571 -6 419 23 354 23 875 81 762 89 252 89 252 15 865 13 136 24 427 10 322 -29 180 -13 170 -14 344 -33 449 IFRS - – – – – – 230 354 2005 -996 1 941 2 171 2 184 8 771 8 415 2 371 5 051 3 053 89 252 47 600 47 600 24 653 -43 836 -14 087 -31 125 -25 540 -11 569 -12 305 -49 060 * 3 3 2 1 5 1, 2 Note Foreign exchange rate effects rate exchange Foreign in beginning of period. equivalents and cash Cash in the end of period equivalents and cash Cash of: Consisting Bank etc. Paid in, but not registered equity in, but not registered Paid issue equity from Proceeds financing activities from flow Cash equivalents and cash Net change in cash Purchase of shares in companies (net) in companies of shares Purchase other receivables from Proceeds activities investment from flow Net cash financing activities from flow Cash debt long term new from Proceeds Cash flow from operations from flow Cash activities investment from flow Cash assets sale of fixed from Proceeds assets of fixed Purchase assets of intangible Purchase Write-downs on fixed assets on fixed Write-downs assets of fixed of sales Loss/gain Net paid leasing options employee wages Calculated receivables in accounts Changes creditors in trade Changes in other accounts Changes (All amounts in ‘000 NOK) (All amounts approach – indirect statement flow Cash operations from flow Cash tax before Net profit paid tax Income Depreciation CASH FLOW, GROUP FLOW, CASH reconcilation. * See equity

ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 24 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 25 - – 1 941 2 192 2 371 -1 919 TOTAL 64 081 54 580 -14 086 – – – 2 371 2 192 -1 919 -14 086 earnings -592 217 -603 657 Retained 497 1 848 Share reserve 652 065 654 410 premium ------521 -521 registered Paid, but not share capital share - - - - 24 93 3 711 3 827 Share Capital For equity reconciliation between 2004 NGAAP and 2004 IFRS, see separate note on IFRS implementation effects. effects. implementation on IFRS note see separate 2004 NGAAP and 2004 IFRS, between reconciliation equity For In June 2005, the employees exercised options which resulted in a share capital increase of 1.941K NOK. of 1.941K increase capital in a share options which resulted exercised In June 2005, the employees exer options of number total The 5,60. NOK at exercised were options 22.334 and 2,00 NOK to exercised were options 907.921 into cash exercised options and were 455.086 to shares, translated options were Of cised these 930.255. was options; 475.169 exercise). (cashless The calculated wages option employee are related to costs the option See note program. separate for more information on the option program. Register of share capital share of Register options) exercising (employees issue share Net options employee wages Calculated differences rate exchange Foreign error prior year Correction, for Net profit pr 31.12. Equity (All amounts in ‘000 NOK) (All amounts equity in Movement pr 01.01 Equity GROUP EQUITY RECONCILIATION, RECONCILIATION, EQUITY - - - - CHANGES IN ACCOUNTING PRINCIPLES: IN ACCOUNTING CHANGES starting from July 2005. from starting OPERATION: IN A FOREIGN 21 – NET INVESTMENT IAS arising on a differences rate During exchange periods, previous foreign in investment net entity’s reporting a of part forms that item monetary statement loss and profit the in recognised been has operation, foreign a (financial items). During 2005 an item for which settlement is neither planned nor likely to occur in the future, these foreseeable items have impairment at the cash-generating unit level takes place annually (unless (unless annually place takes level unit cash-generating the at impairment tested be to goodwill the requires which year the during occurs event an the from more 01 frequently) useful January lives of 2005. Moreover, having as level asset individual the at assessed now are assets intangible assets intangible year, last of end the Until life. indefinite or finite a either presumption reputable a with life useful finite a have to considered were asset the when date the form years twenty exceed not would life that that the of some 38, IAS revised the with accordance In use. for available was intangible assets are to regarded have a finite useful life when, based limit foreseeable no is there factors, relevant the of all of analysis an on to the period which over the assets are to netexpected generate cash consolidated the improved policy the of effect The Group. the for inflows 10.834. with KNOK (2004) year previous NGAAP results RECOGNITION: 18 – REVENUE IAS will only Revenue be when recognised it is probable that the economic when and entity the to flow will transaction the with associated benefits conditions these Are reliably. estimated be can services of rendering the significant and ownership the once occur will recognition revenue the met, is re All revenue the to buyer. risks has of been the transferred service basis straight-line a on recognised is and income subscription as garded connection from Revenue months). 12 (normally period contract the over recognised are subscriptions new of sale the from received are that fees time the at costs initial the that is this for reason The sale. of time the at paid are up of higher are All establishment than contracts the revenue. front and are non-terminable incus period. the Pre-invoiced contract periods that has not When contract yet. started the represents tomers the invoice, his paid have customers the and started has period contract is All customer is income. to revenue reclassified deferred pre-invoiced principle. the earning to according recognised ERP- new This ERP-system. new a implemented group the 2005 July In the As revenue. deferred of calculation accurate more a contains system old calculated ERP-system on deferred revenue the basis of months, on the revenue basis the deferred calculates of new days. ERP-system The are implementation basically that effects the starting point of de on starts a ferring revenue later and stage, 50% that of approximately total sales are shifted a to a month’s later period. The implementation July by 2006 will be (12 in month complete all aspects material effects reduced have to effects implementation the estimated have We contracts). 1/24 with of a revenue approximately over 12 recognised month period Ireland. Ireland. The immaterial (less inoperations these subsidiaries were/are of the revenue). than 0,1% 1: THE NETHERLANDS: MERGER These subsidiaries. Dutch – four – 4 were there 2005, January 01 of As effect with 24-company Active one into merged been have subsidiaries 01 January 2005. from 2: THE UNITED KINGDOM (UK): MERGER 2 As – of – 31 2005, were two UK there subsidiaries. December These effect with subsidiary 24 Active one into merged been have subsidiaries 01 January 2006. from All of the 24 – Group companies Active as of 31 December 2005 – are footnote. in separate shown PAYMENT: 2 – SHARE BASED IFRS the in principle accounting payment based share the applied Group The Group NGAAP The 2004 share based accounts. in payment program cludes options to granted managementemployees, key and board of The directors. Group policy is to include as many of the in employees used be can options the maturity of date the At possible. as program the The main of 2 impact IFRS on the price. at exercise shares purchase to Group is the of recognition an expense and a entry corresponding into the of effect The options. share employee and executive senior for equity KNOK by net result year current the has policy consolidated decreased in 2004. in 2005 and KNOK 3.246 2.371 OF 36 – IMPAIRMENT / IAS COMBINATIONS 3 – BUSINESS IFRS ASSETS: – INTANGIBLE 38 / IAS ASSETS Upon acquisition the Group initially measures the identifiable assets, liabilities and contingent liabilities at acquired their value fair as at the to acquisition date. purchase All according acquisitions are recognised represents goodwill 01.01.2004, after preformed acquisitions For method. between of cost the the difference acquisition and value fair of the net The adoption of identifiable overtaken. IFRS assets 3 and IFRS 38 has for annual goodwill amortisation. Testing ceasing in the Group resulted April 2005. The sale included an OEM deal between the parties with base. the customer to regards LTD 24 AND ACTIVE ISP SRL (ITALY) ACTIVE DOWN: CLOSE (IRELAND) Italy in subsidiary its down closed 2005 during has Group 24 Active The and the Group is also in the of process closing down its subsidiary in ------age exchange rate. age exchange date. CHANGES IN THE GROUP STRUCTURE: IN THE GROUP CHANGES STATEMENT OF COMPLIANCE: OF COMPLIANCE: STATEMENT BASIS OF PREPARATION: OF PREPARATION: BASIS CORPORATE INFORMATION: INFORMATION: CORPORATE SALE 2: ACTIVE LTD (USA): (USA): LTD 2: ACTIVE SALE The parent 24 (Active soldASA) its subsidiary 24 on(Active Ltd) 30 PURCHASE 3: CP ONLINE SRO (THE CZECH REPUBLIC): REPUBLIC): (THE CZECH 3: CP ONLINE SRO PURCHASE Online CP competitor its purchased sro) 24 (Active subsidiary Czech The was transaction Online CP The 2005. September 01 from effect with sro method. with the purchase out in accordance carried (NORWAY): AS 1: LOGIN SALE The parent 24 (Active soldASA) its subsidiary (Login AS) on 01 May or assets. operations any 2005. The subsidiary did not have ing their growing competitor Loopia fast AB, with effect from 01 May 2005. The Loopia was transaction carried out with in the accordance method. purchase AND ZOO 24 2: ACTIVE ESTABLISHMENT/PURCHASE (POLAND): CYBERNETIX subsidi a establishing by marked Polish the entered Group 24 Active The internet Polish a of assets the purchased subsidiary The Warsaw. in ary Cybernetix The 2005. August 01 from effect with (Cybernetix), company principle. transaction the with accordance in out carried was transaction rency at the foreign exchange rate on the balance sheet date. on the balance rate exchange at the foreign rency es from occurred; structure Group the in changes several 2005 During tablishment of subsidiaries foreign to purchase of competitors foreign and sale of subsidiaries. (shares/assets) (SWEDEN): 1: LOOPIA-GROUP PURCHASE purchas by Sweden in position its manifested has Group 24 Active The company and the group have NOK as their functional currency. The parent parent The currency. functional their as NOK have group the and company subsidiaries in the currency lends functional its out to money company cur have not do generally subsidiaries the Therefore, subsidiaries. the of to is exposed company the parent gains in their books. rency However, gains exchange unrealised the recognises and risks currency foreign the and gains rate exchange These balances. inter-company from losses and losses are not eliminated in as the the Group accounts subsidiaries do gains or losses. exchange corresponding any not have cur reporting the to converted are currencies foreign in items Monetary date that such control ceases. ceases. that such control date been have principles following the subsidiaries, foreign consolidating In used: aver an on based NOK to converted are items account loss and Profit – sheet balance the on based NOK to converted are items sheet Balance – The functional currency for the Group companies differs. The parent All intra-group All balances, intra-group transactions, income, expenses, andprofits losses resulting from transactions thatintra-group are recognised in eliminated been have subsidiaries in Shares full. in eliminated are assets in shares for price Cost method. purchase the using accounts group the in to allocated and analysed is date acquisition the at equity book of excess that price Cost value. excess the with associated items sheet balance the as goodwill. is classified specific assets to be allocated cannot Subsidiaries are fully consolidated from the date of acquisition, being the until consolidated is and control obtains Group the which at date the Reporting Standards Standards (IFRS) Reporting as adopted by the EU and interpretations established by Standards Board (IASB). International This Accounting and IFRS first statements consolidated IFRS 1 is has the been Group’s applied. OF CONSOLIDATION: BASIS statements financial the of consist statements financial consolidated The financial The December. 31 at as subsidiaries its all and Group 24 Active of year reporting same the for prepared are subsidiaries the of statements policies. accounting using consistent company, as the parent current value of the proceeds at the transaction date. Revenue is recog is Revenue date. transaction the at proceeds the of value current matched are with and revenue. nised costs when rendered are services Kroner Norwegian in presented are statements financial consolidated The (NOK) and all are values rounded to the thousand nearest (NOK000), indicated. otherwise where except The consolidated financial statements of 24 Active Group and all its Financial International with accordance in prepared been have subsidiaries and loss statement, balance sheet, cash flow analysis, movement in equity equity in movement analysis, flow cash sheet, balance statement, loss and and information for the footnotes ended year 31st of December 2005. shares its where Norway, in domiciled company limited a is ASA 24 Active Group The ACTIVE). (ticker: Exchange Stock Oslo at traded publicly are Oslo. 16, N-0117 Fjordalléen Brygge: at Aker headquarters has its The financial have been consolidated on statements prepared the fun the to booked are Transactions cost. about historic principles damental The consolidated financial statements of Active 24 Group consist of profit profit of consist Group 24 Active of statements financial consolidated The ACCOUNTING PRINCIPLES, GROUP ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 26 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 27 ACCOUNTING PRINCIPLES, GROUP ------3 years * The expected useful life of a purchased customer base is based on the churn for base is based on the churn for customer of a purchased useful life * The expected bases customer that all purchased it is expected As of now; base. the customer 5 years. of 3 to useful lifetime has an expected The carrying amount of and for impair the tested are reviewed assets ment at each sheet balance The date. book written are values down to value market if between book the value difference and value market is material. determining the gain or loss on disposal of the operation. Goodwill dis Goodwill operation. the of disposal on loss or gain the determining posed is based of measured on values in this the circumstance relative of the operation disposed of and the portion of the cash-generating unit retained. debt assets, identified above company a of value excess the is Goodwill The price. purchase to liabilities. and Goodwill contingent is recognised value of goodwill is on reviewed a regular basis for impairment in con nection with that events might indicate a value significantly different book value. from AND VEHICLES: MACHINERY EQUIPMENT, accu and depreciation accumulated less price, cost at stated is Equipment straight-line a on calculated is Depreciation value. in impairment mulated events when impairment for reviewed is assets of value Carrying basis. be not may value carrying the that indicate circumstances in changes or An upon asset disposal is or derecognised when no future recoverable. economic benefits are expected from its use or disposal. Any gain or loss arising on of derecognition the asset as (calculated the difference asset) the of amount carrying the and proceeds disposal net the between derecognised. is asset the year the in statement income the in included is useful values, and and residual lives methods reviewed are The asset’s end. year at each if appropriate adjusted DEPRECIATION: Depreciation a follows straight-line method theover expected useful statement. loss and profit the in recognised is and asset the of time life is as follows: assets, tangible Group’s the time for useful life Expected -leased equipment EDP and Data Processing) (Electronic computers: • 3 – 5 years and vehicles: computers Equipment, • The EDP-leased equipment to relates the platform production and the Centers. equipment in the Data The expected useful life time intangiblefor the assets, Group’s is as follows: 3 – 5 years base*: customer • Purchased 3 years • Software: 3 years up to etc.): rights, (patents, assets • Other intangible quisitions and self developed intangible assets. A typical example of intangible assets arisen from value acquisitions identified is as excess customer base. A of typical example intangible arisen assets from self develop software to related directly costs is assets intangible developed actual at recognised are acquisitions from arisen assets Intangible ment. useful expected its over amortised are and purchase of time the on value expected the over basis line straight a on recognised is Amortisation life. useful life of the asset. Intangible assets are subject for regular and individual impairment testing. GOODWILL: cost at measured initially is combination business a in acquired Goodwill Group’s the over combination business the of cost the of excess the being con and liabilities assets, identifiable the of value fair net the in interest tingent initial goodwill liabilities. recognition, is Following measured at less cost any impairment accumulated losses. Goodwill is for reviewed circum in changes or events if frequently more or annually impairment be impaired. may value that the carrying indicate stances the purpose of in goodwill a impairment acquired business For testing, Group’s the of each to allocated date, acquisition the from is, combination that ex units, are or of units, groups cash-generating cash-generating of irrespective combination, the of synergies the from benefit to pected whether other assets or liabilities of the Group are assigned to those units or groups of units. Each or group of units to which the goodwill is so allocated: the within – level lowest the represents Group at which the goodwill is and management purposes; internal for monitored – is not larger than a segment based primary on or either the Group’s with accordance in determined format reporting secondary Group’s the is unit cash-generating a connection this In Reporting. Segment 14 IAS a single country. Impairment amount is of determined the by assessing the recoverable cash-generating units of(group cash-generating units) to which the cash-generating the of amount recoverable the Where relates. goodwill is than less units) the of carrying amount, cash-generating unit (group cash- a of part forms goodwill Where recognised. is loss impairment an operation the of part and units) cash-generating of (group unit generating operation the with associated goodwill the of, disposed is unit the within disposed of is included in the carrying amount of the whenoperation embodied in the asset is for by accounted changing the amortisation ac in changes as treated are and appropriate seen as method, or period with assets intangible on expense amortisation The estimates. counting consistent category expense the in statement income the in is lives finite asset. of the intangible with the function The of intangible consist both assets intangible arisen assets ac from ------AND IFRIC INTERPRETATIONS NOT YET EFFECTIVE NOT AND IFRIC INTERPRETATIONS s SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: POLICIES: ACCOUNTING OF SIGNIFICANT SUMMARY SIGNIFICANT ACCOUNTING ESTIMATES: ESTIMATES: ACCOUNTING SIGNIFICANT amortisation method for an intangible asset with at finite useful life is useful expected the in Changes year-end. financial each least at reviewed benefits economic future of consumption of pattern expected the of life INTANGIBLE ASSETS: INTANGIBLE recognition initial on measured are separately acquired assets Intangible combination business a in acquired assets intangible of cost The cost. at initial Following acquisition. of date the on as value fair at considered is intangible are recognition, assets carried at less cost any accumulated impairment losses. accumulated amortisation and any economic useful the over amortised are lives finite with assets Intangible life and assessed for impairment whenever there is an indication that the intangible asset may be The impaired. amortisation period and the quently the cost is recognised on a linear basis over the contract period contract the over basis linear a on recognised is cost the quently correspond the to matched are costs domain The months). 12 (normally contract the over basis straight-line a on recognised are and revenue ing period (normally 12 months). The implementation of the has new ERP-system got the same effects deferred and revenue for as costs, product deferred and costs product on with the opposite effect. The However, Group has revenue. calculated the to implementation KNOK be effects 350 approximately in product costs. assessment has been considered not feasible, a common approach has approach common a feasible, not considered been has assessment made is Provision considered. been has sample total the and applied been collect to able be not will Group the that evidence objective is there when off when identified. written are Bad debts the debts. with a and value reduced to face been assessed have Other receivables losses. future for provision COSTS: PRODUCT and rental line for costs sold, domains for costs of consist costs Product fees for agents. The domain is cost matched with and revenue conse Current Current assets and short-term liabilities consist of items that duefall within one year from the balance sheet date. No items related to the circular flow of income extend for more than 12 months from the bal sheet date. ance RECEIVABLES: AND OTHER TRADE carried and recognised are days 15 of maturity normal a with Receivables amounts. uncollectible any for allowance an less amount invoice original at The is provision based on analysis and assessment of individual items to the extent that this is feasible. In those cases where an individual CLASSIFICATION IN THE BALANCE SHEET: SHEET: IN THE BALANCE CLASSIFICATION Assets and liabilities associated with the circular flow of income are Assets respectively. liabilities short-term and assets current as classified are income of flow circular the with associated not are that liabilities and liabilities classified if as they current are assets/short-term due within clas are liabilities and assets Other close. year fiscal the after year one items. sified as long term LIABILITIES: AND SHORT-TERM CURRENT ASSETS Due to previous years Due priorities, to years material previous amounts have been spent on and marketing efforts personnel leaving the parent and the subsidiar ies in a taxable deficit. The accumulated tax loss incarry forward the man and director’s of board The note). separate (see material is group projections shows that current tax agement’s loss can carry forwards be utilised future towards taxable profits. The Group has a therefore tax asset in the balance sheet of KNOK 20.298. note See for separate information. more value value in use the requires Group to make an estimate on the expected future cash from flows the unit cash-generating and also to choose a suitable discount in rate order to calculate the present value of those goodwill of write-down full a to led testing impairment This flows. cash related to the purchase of Virtual Internet (from 2003). The effects of this write-down decreased the consolidated current year result by 2005 December 31 at as goodwill of amount carrying The 8.771. KNOK note. in separate is shown ASSET: DEFERRED TAX ESTIMATION UNCERTAINTY: UNCERTAINTY: ESTIMATION The assumptions key concerning the future and other of sources key significant a have that date, sheet balance the at uncertainty estimation assets of amounts carrying the to adjustment material a causing of risk below: discussed are financial year, next within the an liabilities OF GOODWILL: IMPAIRMENT The Group determines whether goodwill is impaired at least on an an nual basis. This an requires estimation of the value in use of the cash- generating units to which the goodwill is allocated. Estimation of the change are calculated to be KNOK 1.405 (reduction in equity). (reduction 1.405 be KNOK to calculated change are IFRS effective. yet not interpretations IFRIC and IFRSs of number a are There The Group that expects any adoption of the announcements will not in financial the statements period material impact have on the Group’s of the initial application. been recognised initially in a separate component of equity and recognised recognised and equity of component separate a in initially recognised been in profit or loss on disposal of the net The investment. of effects this ------goodwill or of an asset or liability in a that transaction is not a busi the neither affects transaction the of time the at and combination ness and or loss; profit nor taxable profit accounting in subsidiaries, associates in and jointinterests where theventures, timing can of of be the the differences controlled reversal temporary and it is probable that the will differences temporary notin reverse future. the foreseeable liability or asset an of recognition initial the from arises difference rary in a transaction that is not a business combination and at the time of the neithertransaction affects the accounting profit nor taxable and or loss; profit deferred ventures, joint in interests and associates subsidiaries, in ments tax assets are recognised only to the extent that it is probable that the willin differences temporary thereverse future foreseeable and differences temporary the which against available be will profit taxable be utilised. can TAX: TAX: the financing activities. the financing activities. FINANCIAL INSTRUMENTS: The Group has no financial instruments receivables besides accounts and – payables. that sufficient taxable profit will be available to allow all or part of the income deferred Unrecognised utilised. be to asset tax income deferred recognised are and date sheet balance each at reassessed are assets tax profit taxable future the that probable become has it that extent the to be recovered. to asset tax the deferred will allow rates tax the at measured are liabilities and assets tax income Deferred to apply to the when that expected year the are asset is or realised the liability is settled, based on tax rates (and tax laws) that have been sheet date. at the balance enacted Income tax relating to in directly items recognised equity is recognised statement. and not in the income in equity if a offset legally en tax liabilities are and deferred tax assets Deferred right to setexists forceable off current tax assets against current tax liabilities and the relate to taxes deferred the same taxable entity and authority. the same taxation PER SHARE: EARNINGS Earnings per share has been calculated by dividing profit or loss at tributable to ordinary equity holders of the parent entity (the numera by thetor) weighted number average of ordinary shares outstanding (the duringdenominator) the period. There have not events occurred the change have that period the during vesting option normal than other number of ordinary shares. Diluted earnings per share are considering the number of outstanding options as well as the number of ordinary in the denominator. shares FLOW: CASH classified period the during flows cash reports statement flow cash The method. indirect the using activities, financing and investing operating, by non-cash a of transactions of effects the for adjusted is loss or profit The receipts cash operating future or past of accruals or deferrals and nature or payments and items of income or expense associated with invest ing or financing cash The flows. cash of flows a subsidiary foreign are the and currency functional the between rates exchange the at translated at currency the arising dates of foreign flows from the Cash cash flow. separately disclosed are subsidiaries of disposals from and acquisitions and classified as activities. investing Items of a non-cash nature that impact have on the cash are disclosed flows line(s), on below separate Current Current tax assets and liabilities for the current and prior periods are measured at the from or amount paid to expected be to the recovered taxation authorities. The tax and rates tax laws used to compute the sheet date. the balance by enacted those that are amount are DEFERRED TAX temporary on method liability the using provided is tax income Deferred and assets of bases tax the between date sheet balance the at differences purposes. financial reporting for amounts and their carrying liabilities tax Deferred liabilities for are recognised all differ taxable temporary except: ences, Where the tax deferred liability arises from the initial of recognition • investments with associated differences temporary taxable of respect In • all temporary deductible for recognised are tax assets income Deferred and losses, unused tax of credits unused tax forward carry differences, to the that extent it is probable that the taxable profit will be available carry-forward the and differences temporary deductible the which against be utilised except: can losses and unused tax credits of unused tax tempo deductible the to relating asset tax income deferred the Where • invest with associated differences temporary deductible of respect In • each at reviewed is assets tax income deferred of amount carrying The probable longer no is it that extent the to reduced and date sheet balance Operational Operational lease is a lease other than a financial lease (see above). cars. company and equipment office (some) for used is lease Operational lease as Operating are payments recognised an expense in the income term. the lease basis over on a straight-line statement CURRENT TAX: ------the asset and the lease term if there is no reasonable certainty that the that certainty reasonable no is there if term lease the and asset the term. the end of the lease by ownership will obtain Group nomically usable by one or more users. In the majority of the cases this is is this cases the of majority the In users. more or one by usable nomically is assets these of life useful The years. – three – 3 to equal be to expected embodied benefits economic the which from period remaining estimated to rate Discount entity. the by consumed be to expected are assets the in payment lease minimum the of value present the calculating in used be apportioned are payments Lease lease. the in implicit rate interest the is to as so liability lease the of reduction and charges finance the between liability. the of balance remaining the on interest of rate constant a achieve leased Capitalised income. against directly charged are charges Finance assets are the depreciated over shorter of the estimated useful life of The Group uses leasing as a way of financing its purchases and opera uses leasing as of The purchases a financing Group way its the operational, or financial is lease a whether classify to order In tions. that lease a is lease Financial addressed. been have 17 IAS in guidelines ownership to incidental rewards and risks the all substantially transfers lease is a of Operational an asset. Title may or may not be transferred. of as to “rent lease other that a referred and financial is lease, typically The Group has financed its purchases related to its Data equipment”. practically As company. leasing a through platform) (production Centers transferred are assets of ownership to incidental rewards and risks the all is life economic The lease. financial as defined is lease this Group, the to to be considered the period which over an asset is to be expected eco to the passage of time is recognised as borrowing cost. cost. as borrowing of time is recognised the passage to TRANSACTION PAYMENT SHARE-BASED of (including and senior Both employees executives) of board directors in the of pay form share-based remuneration received the have Group of The these holders options decide can ment exercise to transactions. shares. options into LEASES: or constructive) or as constructive) a result of a past and events it is probable that an outflow embodying of economic resources benefits will be to required amount the of made be can estimate reliable a and obligation the settle to provision a of all or some expects Group the Where obligation. the of reimburse the contract, insurance an under example for reimbursed, be reimbursement the when only but asset separate a as recognised is ment is virtually certain. The expense relating to any is provision presented in the net statement income of If any the of reimbursement. effect the using a cur discounted are of is provisions money time material, value rent that pre-tax where rate the appropriate, reflects, risks specific to due provision the in increase the used, is discounting Where liability. the BORROWING COSTS: COSTS: BORROWING when incurred. as an expense recognised are costs Borrowing AND BORROWINGS: LOANS INTEREST-BEARING All loans at and initially are borrowings the recognised of value fair the costs. transaction attributable directly less received consideration PROVISIONS: (legal obligations present has Group the when recognised are Provisions CASH AND CASH EQUIVALENTS: EQUIVALENTS: AND CASH CASH Cash and short-term deposits in the balance sheet comprise cash at banks and in hand and short-term deposits with an original maturity the of months purpose three of or less. For the cash flow consolidated equiva and cash of cash consist equivalents and cash cash statement, and cash The overdrafts. bank outstanding of net above, defined as lents known a to months, 3 within cash to converted be can equivalents cash risk. amount and without significant asset’s recoverable amount since the last impairment loss was recognised. recognised. was loss impairment last the since amount recoverable asset’s If that is the case, the carrying amount of the asset is increased to its the carrying amount exceed cannot amount. The increased recoverable amount that would have been determined, net of depreciation, had no impairment loss been for the recognised asset in prior Such years. re revalued at carried is asset the unless loss or profit in recognised is versal After increase. revaluation as treated is reversal the case which in amount, such the a depreciation charge is reversal adjusted in future periods to on carrying amount, value any less revised residual the allocate asset’s useful life. remaining its basis over a systematic cash flows are discounted to their present value using a pre-tax discount discount pre-tax a using value present their to discounted are flows cash money of value time the of assessments market current reflects that rate opera continuing of losses Impairment asset. the to specific risks the and categories expense those in statement income the in recognised are tions asset. of the impaired with the function consistent any is there whether to as date reporting each at made is assessment An impairment may no losses longer recognised that indication previously exist, or may have decreased. If such indication the exists recoverable reversed is loss impairment recognised previously A estimated. is amount only has if been there a change used in the determine to the estimates that an asset may be impaired. If any such indication or exists, when annual impairment testing for an asset is required, the Group makes recoverable amount. An asset’s an recoverable estimate of the asset’s amount is the value fair higher or of unit’s cash-generating an asset’s amount is to sell less recoverable costs and its value in use. An asset’s determined for an individual asset, unless the asset does not generate or assets other from those of independent largely are that inflows cash groups of assets. Where the carrying amount of an its asset exceeds down written is and impaired considered is asset the amount, recoverable future estimated the use, in value assessing In amount. recoverable its to IMPAIRMENT OF ASSETS: ASSETS: OF IMPAIRMENT indication an is there whether date reporting each at assesses Group The ACCOUNTING PRINCIPLES, GROUP ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 28 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 29

NOTES, GROUP 1 72 Total 51 949 51 949 -8 771 30 298 -28 768 -53 962 -10 853 104 309 134 679 – – – – and -98 776 rights Patent 3 278 4 054 2 889 -1 165 3 years (All amounts in ’000 NOK) (All amounts – – – 72 ware Soft- -782 1 799 4 905 6 776 5 994 -1 105 362 KNOK 362 3 years 1 191 KNOK 11 001 KNOK 5 250 KNOK 11 705 KNOK 11 705 13 557 KNOK 13 557 22 706 KNOK 22 706 20 360 KNOK – – – – bases -9 650 3 years 12 000 20 260 32 260 20 360 -11 900 Customer Purchased – ∞ – – 1 855 -8 771 89 734 91 589 22 706 Goodwill -14 921 -53 962 A24 Media Factory sro (CP Online), The Czech Republic Republic Online), The Czech (CP sro Media Factory A24 Active 24 sro (Globe Internet sro), The Czech Republic Republic The Czech sro), Internet (Globe sro 24 Active Depreciation Write-downs useful life Expected Investments from purchased company purchased from Investments Investments 31.12. cost Purchase 31.12. depreciation Accumulated 31.12. write-downs Accumulated 31.12. pr. Book value Group assets Intangible pr 01.01. cost Purchase The group has also purchased Licences and Trademarks related to the acquisitions in Poland (Cybernetix) and The Czech Republic and Republic The Czech (Cybernetix) in Poland the acquisitions to related and Trademarks Licences has also purchased The group of useful lifetime which is the similar expected to is 3 years time of assets these useful life The expected sro). Media Factory (A24 KNOK. 2 889 are assets of these basis and the book value on a straight-line depreciated are The assets normal hardware. Group has capitalised software costs related to development of new functionality in accounting system Navision (ERP-system). The The (ERP-system). Navision system accounting in functionality new of development to related costs software capitalised has Group the that believed is It years. 3 over (straight-line) depreciated are completed been have that parts The completed. partially is project normal hardware. equal to useful lifetime an expected will have costs software capitalised statement. and loss profit in the expensed are been completed that have the parts and add-ons on to upgrades to related Costs capitalised the of value Book depreciated. not consequently and capitalised are date, sheet balance the on completed not parts The is 5 994 KNOK costs AB, Sweden Loopia Republic The Czech sro), Internet (Globe sro 24 Active Poland Cybernetix, There is a split between goodwill and customer base value of 24 to related Active sro the (Globe Internet sro). excess Purchased churn. expected and consider sheet date, on balance flows cash net discounted against base is compared customer Total using estimates for different parameters like growth-rate, discount rate anddiscount rate churn. usinggrowth-rate, like The estimates for parameters sensitivty different isbetween these also factors considered. Goodwill 24 (Virtual to Internet) related Active Ltd has been written down to nil, with 8 771 KNOK, during 2005. The write down than expected. performance lower due to out has been carried of: purchase from value excess to base relates customer Purchased Goodwill relates to excess value from purchase of: purchase from value excess to Goodwill relates AB), Sweden AB (Carambole 24 Active calculated are flows cash discontinued Net date. sheet balance on flows cash discounted net estimated against compared is Goodwill Total Intangible assets (except goodwill) are depreciated using a straight-line method. using a straight-line depreciated goodwill) are (except assets Intangible impairment annually. for tested (including goodwill) are assets All intangible NOTE 1 NOTE ASSETS INTANGIBLE – -437 2004 6 903 2 208 6 903 9 060 7 547 1 466 9 014 15 963 15 963 25 540 34 394 15 963 -98 099 -13 800 105 182 132 493 Present value Present Total –

– – Group 2005 2 003 2 203 7 510 1 696 -3 096 36 352 40 558 13 106 10 724 18 235 15 963 17 659 -27 452 (All amounts in ’000 NOK) (All amounts (All amounts in ’000 NOK) (All amounts Nominal value Nominal value Equuipment and machinery – – – – – 375 -45 -45 420 420 Company cars cars Company 205 -437 68 831 22 917 91 516 20 914 -70 602 -10 659 equipment and comp. Leased EDP- Leased

Rent next year (2006) year next Rent 2–5 (2007–2011) year for Rent 6-> (2012->) year for Rent rent Total Other long term debt Other long term debt long term Total financial leases to obligations related Leasing Annual rent Obligations at year-end Long term debt term Long debt leasing term Long Depreciation Investments from purchased company purchased from Investments Investments Disvestments 31.12. cost Purchase 31.12. deprecitaion Accumulated 31.12. pr. Book value Group assets Fixed pr 01.01. cost Purchase NOTE 3 NOTE Nominal value is calculated using half year interest at 4,3%, which equals an annual interest of 8,8%. at 4,3%, which equals an annual interest interest using half year is calculated Nominal value LONG TERM LIABILITIES AND LEASING OBLIGATION OBLIGATION AND LEASING TERM LIABILITIES LONG The Group uses straight-line depreciation on all fixed assets. The estimated useful life for all fixed assets varies between 3-5 years. NOTE 2 NOTE FIXED ASSETS

NOTES, GROUP 2,3 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 30 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 31

NOTES, GROUP 4 – – -3 15 Net -43 -15 230 118 -956 -113 -144 -357 profit rights 3 082 Voting Voting 3 098 1 398 (‘000) 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % -5 150 -4 063 -1 563 -1 811 3 237 118 -379 -380 Equity 3 147 1 106 (‘000) 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % -3 514 -9 474 -5 252 -1 182 -8 531 -3 120 -1 777 -52 348 -63 793 -29 083 -18 349 Ownership – – 10 100 300 100 100 500 125 No. of No. 3 200 5 000 3 000 4 000 1 000 1 000 1 000 by A24 by 10 000 100 000 Shares held Shares 15 119 428 – – 10 total 100 300 100 100 500 125 No. of No. 3 200 5 000 3 000 4 000 1 000 1 000 1 000 Shares Shares 10 000 100 000 15 119 428 Office Helsinki, Finland Denmark Copenhagen, London, UK Norway Oslo, Am Main, Germany Frankfurt Switzerland Austria Vienna, Madrid, Spain Belgium Brüssels, Spain Barcelona, Ireland Sweden Karlstad, The Nederlands Hilversum, UK London, Republic The Czech Prague, Sweden Västerås, Republic The Czech Brno, Poland Warsaw, 1 24 85 85 67 100 200 103 290 495 418 117 551 103 134 9 133 1 404 (‘000) 1999 1999 1999 1999 2000 2000 2000 2000 2000 2000 2001 2001 2002 2003 2004 2005 2005 2005 37 288 Year of Year Share capital Share acquisition Ltd was on acquired Ltd and 01.05.2003, the purchase price was 18,5 MNOK. Virtual Internet is Ltd under trading the name of is complete. process the merger once Ltd” 24 “Active name to and will change its 24”, “Active in 2002. aquired was The LaDot group and LaDot Holding BV. BV during Q1 2006. effect will take The merger company. AB will be the overtaking Loopia LaDot Holding BV **) LaDot Holding BV *) Ltd Internet Virtual s.r.o.) Internet (Globe sro 24 Active ***) AB (group) Loopia Online) (CP sro Media Factory A24 Spa z.o.o 24 Active Active 24 GmbH 24 Active S.L. 24 Active NV 24 Active SA Interplanet Ltd. 24 Active AB 24 Active Active 24 OY 24 Active ApS 24 Active Ltd*) 24 Active Domain AS) (New AS 24 Active GmbH 24 Active GmbH 24 Active A24 Media Factory sro (CP Online) (CP sro Media Factory A24 Spa z.o.o 24 Active Subsidiaries Company Interplanet SA Interplanet Ltd. 24 Active AB 24 Active **) LaDot Holding BV *) Ltd Internet Virtual s.r.o.) Internet (Globe sro 24 Active ***) AB (group) Loopia Active 24 Ltd*) Domain AS) (New AS 24 Active GmbH 24 Active GmbH 24 Active GmbH 24 Active S.L. 24 Active NV 24 Active Subsidiaries Company OY 24 Active ApS 24 Active *) is Virtual Internet in company Ltd the and the 24 Virtual Internet overtaking Ltd Virtual Internet Ltd. merger between Active Netherlands Ladot **) BV, Services 24 Active BV, 24 Active between merger the in company overtaking the is BV Holding LaDot ***) The of Loopia group consists Loopia AB AB. and The Loopia Webbhotell companies are in of the mergering, process where The following companies are included in the groups financial statements: financial included in the groups are companies The following NOTE 4 NOTE COMPANIES ASSOCIATED AND SUBSIDIARIES 144 506 362 362 Other costs -3 234 39 908 36 674 31-12-2004

Group 535 price 14 427 13 892 13 892 Purchase 43 851 31 614 -12 237 (All amounts in ’000 NOK) (All amounts (All amounts in ’000 NOK) (All amounts 31-12-2005 21 62 65 84 83 43 396 251 139 422 535 118 387 387 542 283 283 100 % 100 % 2 515 1 303 1 303

Ownership CP Online sro 100 % 100 % rights Voting Purchase price ´000 price Purchase – – – 600 date 1 376 1 419 3 629 2 544 1 189 2 504 11 204 18 454 13 892 Purchase 01-05-05 01-09-05 Description marks Trade base Customer Hardware Options/rights Total Poland Country Description Web hosting Web hosting Web

Sweden Country 01-08-2005 Czech Rep. Czech Time of purchase Cybernetix zoo Cybernetix Name Other short-term debt debt Other short-term acquisition of as asset) (intangible base Customer price purchase Total of purchase) (as the year for Net proﬁt Tangible assets assets Tangible (net) Customers Other receivables Cash creditors Trade payable duties Public revenue Deferred Total date: purchase sheet as at Balance AB (group) Loopia Company assets Intanible Purchase of companies: of Purchase Name AB (group) Loopia CP Online sro Nominal value of accounts receivable of accounts Nominal value bad debt for Provision receivable of accounts Book value Accounts receivable Accounts Purchase of assets: Purchase based was on market acquired held of of the ﬁrm. price a The assets the privately purchase assets subsidiary acquired The Polish values. There was no goodwill related to the purchase of the Loopia Group or A24 Media Factory sro (CP Online). (CP sro Media Factory or A24 Group of the Loopia the purchase to no goodwill related was There solelywas thevalue to customerrelated base. The excess The purchase price was paid in cash. was price The purchase NOTE 5 NOTE ACQUISITIONS MATERIAL NOTE 6 NOTE DEBTORS sheet date. the balance after due within one year are All receivables

NOTES, GROUP 5, 6 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 32 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 33

NOTES, GROUP 7 rights Voting 0,52 % 0,52 % 6,38 % 5,82 % 3,67 % 3,57 % 2,19 % 1,81 % 1,80 % 1,57 % 1,22 % 1,11 % 1,10 % 0,81 % 0,79 % 0,76 % 0,65 % 0,59 % 1,10 % 0,79 % 0,00 % 0,00 % 0,00 % 0,00 % 0,17 % 0,10 % 0,52 % 0,00 % 63,06 % 36,94 % 16,19 % 11,99 % 11,99 % 14,68 % 100,00 % Book value 3 827 237 3 827 237 Voting rights Voting – – – – – – (all values in NOK) in values (all – – No. of No. 0,10 shares 65 108 40 000 420 080 302 000 200 000 200 000 200 000 839 643 693 100 687 500 600 000 465 942 423 038 420 080 310 000 302 000 291 666 250 000 225 000 4 590 345 5 617 533 6 195 149 4 590 345 2 443 525 2 227 475 1 403 100 1 366 670 24 134 233 14 138 133 38 272 366 No. of shares No. Nominal value – – No. of No. options 70 000 41 833 40 555 158 667 117 333 133 667 103 667 370 000 265 000 270 000 1 770 722 38 272 366 38 272 366 No. of shares No. Related party Related Sobona AS Ventures Capital European Ventures Capital European II BV Ventures Renessence AS Fanth Holding AS SS – – – AS Trading Aass – CFO COO Position Chairman member Board member Board member Board member Board member Board repr.) member (empl. Board in board Observer CEO Hans Petter Gruber Hans Petter Bjerva Welde Håkon Jaap Zuiderveld Thomas Christensen Larsen Jan Sverre Total Anthony Joel Bay Anthony S Fitchey Cary Nina B. Brink- Vleeschdraager Wilson Nigel Kenneth Sønsteby Steinar Total no. of shares no. Total and option positions share- employees’ Key Name Ola Røthe Hedlund, Johan Asa Egenhandelskonto Norge Abg Sundal Collier Oslo AS Strømsveien AS Trading Aass Jon K. Folkestad, Total < 1%) (ownership Other shareholders KLP Forsikring KLP Forsikring Asa Egenhandelskonto Securities First Joachim Christer Tønnessen, Eiendom AS Marienlyst Sobona AS Kjell Anders Eriksson, LLC Investments La Bay Renessence Ventures II B.v. II B.v. Ventures Renessence International Goldman Sachs Co. Bank & Trust Street State II AS Venture Seasons Four Inc Xcelera.com Depot Handelsbanken Svenska MP Pensjon List of major shareholders as per 31-12. as per of major shareholders List Plc Ventures Capital European Share capital consists of: consists capital Share Shares Total There are no loans to board members or shareholders other than those described in note 13. in note other than those described or shareholders members board no loans to are There The company has 1.143 shareholders as at 31-12-2005. as at 31-12-2005. shareholders has 1.143 The company foreigners. held by are shares (49%) 18.590.468 shares; Of the 38.272.366 equal rights. have All shares NOTE 7 NOTE INFORMATION SHAREHOLDER AND SHARE CAPITAL -3 234 -2 320 -7 501 -2 644 10 411 -20 474 31-12-04 -570 111 -572 755 -160 371 -139 897 Group 8 418 -2 855 -12 238 -35 098 -41 773 -20 298 31-12-05 -513 375 -555 148 -155 441 -135 143 (All amounts in ’000 NOK) (All amounts 1 701 1 597 17 000 17 20 298

Active 24 OY OY 24 Active Total Finland Not shown in balance sheet in balance Not shown sheet in balance asset tax-/-tax Deferred Leasing differences Other temporary Total forward carry loss Tax sheet in balance asset tax-/-tax Deferred asset tax/-tax 28% Deferred Temporary differences Temporary Debtors assets Fixed philosophy andby the approved board of the directors, management expect a future taxable profit which a makes tax deferred acceptable. asset carry forward positions. forward carry Both subsidiaries in Sweden and Finland have a history of taxable losses, previous which have changed to current taxable profits during Management the years. has last 2-3 no indication that this are and achievable taxable profits situation will change. Future forward. carry loss tax current be utilised towards can business based the Considering mentioned above on issues along the with company’s budgets for for 2006 2007, and forecasts department in Northern Europe. It is that expected the of effects this willdebt improve collection- and churn as ratioes, well as costs. operational the overall reducing tax The company. parent Norwegian the in located is sheet balance in asset tax-/-tax deferred Group’s the of amount substantial A of record has a long track company The parent parent). for note 200 MNOK (see is over company in the parent forward carry loss that and condsider the managements the of board directors and However, deficits, only (2003). taxable profit of one taxable year mentioned above issues it make probable that can future profits be taxable and achieved can be current utilised tax loss towards During 2006, the group will continue to focus on achieving This economies of profits. will scale include and overall the improving overall the make to A24-products all of re-packaging a include will plan business new The implementation of the new business plan. and customers) (keeping actions preventive churn on focus renewed be will There understand. to easy and complete more products bringing focus As back business” (Web-hosting). a to “core result, it is that expected the number of personnel will reducing fall, costs. personnel the overall which on an will and with the support effect have agreement customer Lindorff, invoicing- an The has outsourcing Group entered comments: General profits. overall and improve of scale economies achieve out to carried was reorganisation During 2005, a material in headquarters its (with organisation matrix a to datacenters, several with organisation run regional a being from went Group The in Oslo and Linux in Hilversum). (Microsoft centers data new with two Oslo) The deferred tax assed recognised in the group accounts can be separated on the following companies and countries: companies on the following be separated can accounts in the group recognised assed tax The deferred ASA 24 Active AB 24 Active Norway Sweden NOTE 8 NOTE TAXES

NOTES, GROUP 8 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 34 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 35

NOTES, GROUP 9 Total Total 2 171 7 323 3 054 4 672 -8 771 -2 608 10 322 23 875 -48 354 -84 669 -13 800 -10 853 -62 188 -13 959 -77 371 -25 540 -49 060 -42 803 -98 423 -13 208 -65 049 -10 216 -79 196 -13 170 -33 449 207 353 214 676 211 180 207 204 211 876 228 095 -156 600 -164 014

– – – – – – – – – – – – – – – – – – – 138 344 623 681 244 2 495 1 646 1 376 -4 000 -3 862 -1 924 -1 924 -1 765 314 120 364 482 -127 731 (All amounts in ’000 NOK) (All amounts -131 762 Elimination Eliminiation – – – – 331 733 113 -848 -510 -787 8 674 2 740 8 580 1 397 Central Europe Central Europe -2 515 -5 101 -9 116 -9 825 -1 672 -5 943 -6 731 -5 772 -2 165 -4 787 -9 328 29 383 26 868 20 347

15 816 18 556 -10 777 -10 851 -30 418 -12 105 -12 884 – – -127 -443 Europe Europe -3 567 -8 771 -3 183 -2 777 -4 698 -7 610 -3 156 -8 265 -5 167 -4 066 68 666 10 012 78 678 74 461 94 587 86 977 38 400 Western Western -33 947 -15 030 -31 576 -22 917 -22 960 -17 349 -45 109 -29 185 -35 296 -13 508 132 008 -238 591 -340 363

– – – – -312 -918 9 542 Europe Europe -9 385 -5 752 -1 574 -5 493 -9 542 -7 216 35 787 98 725 23 717 -22 891 -44 737 -31 801 -42 306 -21 091 -38 419 -19 404 -48 918 -31 321 -34 572 -30 780 -14 525 Northern Northern 113 304 112 992 244 103 108 267 219 269 -201 711 -175 249

hosting). - hereof deferred revenue deferred - hereof assets) (fixed Investments operations from flow Cash investments from flow Cash finances from flow Cash Depreciation Amortisation expenses Other operation result Operating Assets Debt Gross revenue Gross revenue Deferred revenue Recognised costs Product Wages Investments (fixed assets) (fixed Investments operations from flow Cash investments from flow Cash finances from flow Cash – 31-12-2004 IFRS Write-downs expenses Other operation result Operating Assets Debt revenue deferred - hereof Gross revenue Gross revenue Deferred revenue Recognised costs Product Wages Depreciation Amortisation IFRS – 31-12-2005 IFRS • Other revenue: includes fees (establishment-, invoicing-, re-opening-, reminder fee, and more). fee, reminder re-opening-, invoicing-, (establishment-, fees includes • Other revenue: Area of activity: Area categories: revenue-/customer-/product of the following which consists of activity, area is the group’s Web-hosting (email/web). packages and small business domain name registration to relating mainly products Office: • Small Office/Home (shared packages business medium/large and registration name domain to relating products mainly Enterprise: Small/Medium • solutions. server dedicated to relating mainly products Enterprise: • Corporate * Central Europe was not a geographical unit until 01-05-2004. not a geographical was Europe * Central

i) Small office/Home office, ii) Small/Medium Enterprise and iii) Corporate Enterprise. For further details about customer segments, segments, customer about details further For Enterprise. Corporate iii) and Enterprise Small/Medium ii) office, office/Home Small i) and in and the the statement loss balance profit presented which the are figures The is segment therefore information see below. below: specified are of activity area each for figures sheet. The revenue The primary reporting format for the group is divided into units. geographical As a result of the that fact the units geographical risk units The profile. different and units have the geographical interest (and the dissimilar geographical have maturity, countries) into are separated Northern Sweden, DenmarkEurope (Norway, Europe and (UK, Finland), The Western Netherlands, Germany, and Poland). Republic (The Czech Europe and Central and France) Switzerland Belgium, Italy, segments: customer into separated is hosting Web hosting. Web activity: of area and format reporting secondary one only is There NOTE 9 NOTE INFORMATION SEGMENT – – – – – – – – - – 6 250 950 174 274 200 255 Total 1 941 2 395 2 140 2 395 3 265 7 805 GROUP 72 463 12 594 10 101 98 423 34 107 84 162 85 802 31-12-04 31-12-04 211 876 Board of Directors Board Chairman O Røthe – – – – GROUP GROUP 259 259 22 134 501 416 2 371 1 377 3 050 68 779 12 143 84 669 2 082 6 066 (All amounts in ’000 NOK) ’000 in amounts (All 41 533 64 812 31-12-05 31-12-05 214 676 105 281 Management CEO J Zuiderveld J Zuiderveld CEO Other remuneration Loan Guarantees all executives to Remunerations Salaries Total Number of employees: executives to Remunerations Salaries Pension Payroll expenses Payroll Wages option cost Employee Social security Other expenses Pension Other remuneration Loan Guarantees Others Total Total Total & Young Ernst Auditor in 2005 Expensed audit fees Audit fee services Certification services Tax audit) (half year Other audit services Other consulting Small Office/Home Office Office Small Office/Home Small/Medium Enterprise Enterprise Corporate Other revenue Recognised NOTE 10 NOTE WAGES, NUMBER OF EMPLOYEES, REMUNERATIONS, LOANS, LOANS, REMUNERATIONS, EMPLOYEES, OF NUMBER WAGES, MORE AND PENSIONS, Parent auditor is Ernst & The Young. group uses Ernst & as Young their primary audit parties: firm, on the following is separated the group for however cost some Total small subsidiaries. used for otherare small audit firms Anthony Bay was appointed Deputy Chairman (formerly: Chairman of the Board) Chairman Chairman (formerly: Deputy appointed was Bay Anthony management Executive of consists 3 – is renumeration three by fixed – the persons. Board. The The CEO’s Board also sets the prin the and salary fixed of level the both including management, executive of members other for remuneration the for guidelines if employment of termination on pay months’ 12 provides that agreement an has CEO The schemes. bonus of scope and for ciples his is employment the by terminated without in No or Board members reasons. leading Board other positions an employees have ASA. 24 in Active pension agreements no recognised are There of employment. on termination pay that provides agreement Jaap Zuiderveld was appointed temporary CEO on the 01-01-2005 and during 2005 he was (formally) appointed CEO. appointed (formally) on the 01-01-2005 and during 2005 he was CEO temporary appointed was Jaap Zuiderveld Chairman of the Board) Deputy (formerly: Chairman of the Board appointed Ola Røthe was NOTE 9 CONTINUED NOTE

NOTES, GROUP 9, 10 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 36 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 37

NOTES, GROUP 11, 12, 13, 14 - Loan Loan Total Total 6 910 2 217 2 623 Group 2 028 4 616 5 833 9 157 6 204 5 391 31 485 Type of Type -6 504 24 841 17 662 20 802 65 049 31-12-05 31-12-04 payments transaction Consultancy fee Consultancy fee Consultancy fee Consultancy Reimbursement – – – GROUP – – – – Over Over 1 126 1 126 70 20 7 509 2 682 7 428 1 126 7 744 200 12 959 23 864 62 188 five years five 31-12-05 (All amounts in ’000 NOK) (All amounts (All amounts in ’000 NOK) in ’000 (All amounts Cost 2005 Cost – – – – – – 46 1 396 3 318 21 549 21 549 16 835 Receivable Between one Between and five years five and – – – – 632 6 880 8 810 1 298 400 620 Debt one year Less than Less Steinar Sønsteby, board member board Sønsteby, Steinar Related party Related member Nina Brink, board Nina Brink, boardmember Nina Brink, boardmember boardmember Nigel Wilson, chairman Ola Røthe, Annual operating lease payments lease Annual operating 4iTrust AS Fanth Sobona AS Holding AS SS Company Ventures Renessence Recmedia Company cars Company equipment Office space) (office Rent agreements and leasing on rental payments Total Provisions for restructuring costs from earlier periods relate to reorganisation costs for the company for costs reorganisation to periods relate earlier from costs restructuring for Provisions 31.12.2004 costs restructuring for Provision periods previous from costs restructuring for provision Reversed *) and consolidation reorganisation to in relation costs restructuring for Provision costs restructuring for provision Total Rent and office equipment and office Rent and services fees Consulting Other costs on receivables Loss Total sheet in balance costs restructuring for Provision Spesification of other operating expenses of other operating Spesification Marketing expenses and sales Travel NOTE 14 NOTE NOTE 13 NOTE NOTE 12 NOTE 37 relating to subsequent events. subsequent events. to relating 37 SUBSEQUENT EVENTS SUBSEQUENT The The has (marketing). is company company made discussing currently to relating conditions creditors former sufficient provi with IAS in accordance disputes. These recognised issues are regarding and potential disbursements costs sions restructuring for RELATED PARTIES PARTIES RELATED be summarised as follows: can parties with related Transactions The group has entered into various operational leasing agreements concerning office premises, company cars, PC cars, equipment company premises, office and The concerning leasing has group into agreements operational various entered office machines. Most of these leasing have an agreements option to The extend. matrix above is the future minimum payments agreements. leasing with irrevocable in connection *) Provision includes severance payment and costs in relation to the restructuring- and consolidation processes in the group. processes and consolidation the restructuring- to in relation and costs payment severance includes *) Provision OTHER OPERATING EXPENSES AND RESTRUCTURING COSTS COSTS AND RESTRUCTURING EXPENSES OPERATING OTHER Total bank guarantees and restricted deposits equal bank and as guarantees restricted KNOK at 12.188 year end . Of Total this amount; the group has furnished bank KNOK 10.484. amounting to companies of purchased and owners suppliers to guarantees NOTE 11 NOTE FACILITIES OVERDRAFTS DEPOSITS, BANK RESTRICTED - Total 3 000 1 500 1 500 1 500 -0,27 -0,25 45 000 45 000 40 000 -9 011 467 497 135 000 400 000 544 000 415 500 150 000 867 000 652 336 31-12-04 3 116 497 2 426 917 37 651 932 32 104 280 37 104 280 32 775 513 35 854 766 2008 50 000 50 000 -0,37 -0,35 -14 086 625 167 31-12-05 2 491 330 37 104 280 38 272 366 37 651 932 40 768 429 500 500 500 2007 33 1 000 202 130 15 000 13 334 50 000 203 666 138 500 433 500 856 500 No. of days 500 500 500 2006 1 000 45 000 15 000 13 333 50 000 133 334 203 666 138 500 433 500 1 034 833 37 104 280 37 342 111 38 272 366 Accumulated 500 500 500 2005 1 000 45 000 45 000 15 000 13 333 166 720 133 333 136 667 138 500 696 054 Earliest redemption date redemption Earliest 237 831 930 255 37 104 280 No. of shares 2004 45 000 328 722 150 389 133 333

2003 150 388 150 388 start of period start issue capital share issue capital share rate rate NOK 5,60 5,80 5,85 6,15 6,25 6,00 6,69 6,65 5,37 2,00 2,50 3,75 4,50 5,50 Subscript 2004 2004 2004 2005 2005 Total 2004 2004 2004 2004 2004 2004 2004 Time of grant 2003 2003 Dilluted result per share (NOK) per share result Dilluted Number of outstanding shares per 31.12 shares Number of outstanding in period (weighted) of shares no. Average note) (separate members options – board Number of outstanding note) (separate options – employees Number of outstanding per share result of dilluted calculation for number of shares Average (NOK) per share Result 02-02-05 23-08-05 number of shares average Weighted (TNOK) tax after Net result per 01.01 shares Number of outstanding Weighted average number of shares: average Weighted 01-01-05 Options expire if the employee leaves the company. leaves if the employee Options expire The options program in Active 24 ASA consist of 7 separate contracts: of 7 separate consist ASA 24 in Active The options program 1 CONTRACT The options where issued on June 25, 2003 with a price ofstrike NOK 2,00. The options are valid for and three years on expire April 1 2006. 1/3 of each allotment immediately after can options Remaining 1 being be can and granted. exercised be 2 exercised exercisable. remain 467.497 2005 31, December on and granted were options 1.734.250 Originally respectively. allotment after years The fair value of the options has been calculated by employing the Black & Scholes model. The volatility used is the standard deviation deviation standard the is used volatility The model. Scholes & Black the employing by calculated been has options the of value fair Risk- The question. in option the of length time the with varies used period historical The stock. the of returns historical logarithmic the of vesting. after months 6 place take to expected is Excercise bonds. government on rates or rates NIBOR are used rates interest free and manage of The directors board value. at market with a subscription rate warrants is based on granting program The warrant The progress. and future company’s the to committed be to employees the want they as employees to options granted have ment on the employees. effect a positive have to is believed option program Number of assigned options, still outstanding as at 31-12-2005: as at 31-12-2005: outstanding options, still Number of assigned NOTE 16 NOTE IN OPTIONS REMUNERATIONS Result per Result share is withcalculated in IAS accordance 33, by dividing the after tax result by a time of adjusted weighted average according weighted are company the by back bought or issued are which shares Ordinary period. reporting the in shares outstanding possession. the company’s been in have period the shares the reporting to NOTE 15 NOTE PER SHARE RESULT

NOTES, GROUP 15, 16 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 38 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 39

NOTES, GROUP 16 - 7 20 27 3 000 50 000 33 334 55 556 426 890 135 000 150 000 No. of persons No. No. of options exercised No. 657 000 360 000 1 017 000 No. of options No. Chairman Chairman Deputy Member Board Rep. Emp. M&A director former CEO former member board former H P G Bjerva H Bouwman Eric Tolsma Larsen Rolf Total Ola Røthe Bay Anthony Total Executive management and employees Executive of directors Board the company will have to pay social securities based on the difference between market value of share and exercise price. and exercise of share value market between based on the difference social securities pay to will have the company The employees are obligated to cover all incurred when are The obligated the taxes to vesting employees options. cover If the determines his to employee vest options, Members of the Board and employees in Active 24 ASA exercised options in August 2005. A total of 830.255 options were exercised. exercised. were options 830.255 of total A 2005. August in options exercised ASA 24 Active in employees and Board the of Members ASA: 24 management in Active and executive of the Board members by exercised were the following Of these; SPLIT BETWEEN BOARD OF DIRECTORS, TOP MANAGEMENT, AND EMPLOYEES: MANAGEMENT, TOP OF DIRECTORS, SPLIT BETWEEN BOARD op 867.000 the Of ASA. 24 Active of CEO as appointed when Zuiderveld Jaap CEO to issued were 6,65 NOK at options 150.000 Active of management executive to 125.000 and Directors of Board the to issued were options 360.000 5,37, NOK at issued tions ASA. 24 IN 2005: OF OPTIONS EXERCISE were issued at NOK 5,37 (see contract 7 above). Of the options granted in 2005, the following distribution between employees and employees between distribution following the 2005, in granted options the Of above). 7 contract (see 5,37 NOK at issued were occurs: of directors board options can be exercised 2 years after allotment. Originally 867.000 options options can 2 and be after granted were years onallotment. exercised December Originally31, 2005 867.000 867.000 exercisable. remain remuneration. as or ISSUED: REMAINING OPTIONS contract employment their of part as Either ASA. 24 Active in employees key to granted were options Remaining IN 2005: GRANTED OPTIONS 867.000 and above) 6 contract (see 6,65 NOK at issued were 150.000 these Of granted. were options 1.017.000 of total a 2005 In The options where issued on May 25, 2005 with a strike price of NOK 6,65. The options are valid for eight years and expire on May May on expire and years eight for valid are options The 6,65. NOK of price strike a with 2005 25, May on issued where options The after years 3 and 2 exercised be can options Remaining granted. being after year one exercised be can allotment each 1/3of 2013. 25, exercisable. remain 31, 2005 150.000 and on December granted options were 150.000 Originally allotment respectively. 7 CONTRACT The options where issued on November 09, 2005 with a price strike of NOK 5,37 (market value + 10%). The options are valid for eight and at 08, years expire November 2013. 1/2 of each allotment one can be year after being exercised Remaining granted. The options where issued on December 01, 2004 with a strike price of NOK 6,00. The options are valid for eight years and expire on on 5 expire CONTRACT and years eight for valid are options The 6,00. NOK of price strike a with 2004 01, December on issued where options The 3 and 2 exercised be can options Remaining granted. being after year one exercised be can allotment each 1/3of 2012. 01 December exercisable. remain 415.500 2005 31, December on and granted were options 415.500 Originally respectively. allotment after years 6 CONTRACT 1 2006. 1/3 of each allotment can be exercised immediately after being granted. Remaining options can be exercised 1 and 2 years 1 and 2 1 years options 2006. can be 1/3Remaining exercised immediately after being granted. of each allotment can be exercised exercisable. remain 31, 2005 400.000 and on December granted options were 400.000 Originally allotment respectively. after 4 CONTRACT The options where issued on March 31, 2004 with a price of strike NOK 5,60. The options are valid for eight and on years expire years 3 and 2 exercised be can options Remaining granted. being after year one exercised be can allotment each 1/3of 2012. 31 March exercisable. remain 31, 2005 544.000 and on December granted Originally 642.501 options were allotment respectively. after The options where issued on January 01, 2004 with a strike price of NOK 3,75. The options are valid for three years and expire on and expire years three for valid The options are of NOK 3,75. price on January 01, 2004 with a strike issued The options where 2 and 1 exercised be can options Remaining granted. being after immediately exercised be can allotment each 1/3of 2006. 1 January exercisable. remain 135.000 2005 31, December on and granted were options 135.000 Originally respectively. allotment after years the company. leaves if the employee Options expire 3 CONTRACT July on expire and years three for valid are options The 4,50. NOK of price strike a with 2004 01, March on issued where options The CONTRACT 2 CONTRACT NOTE 16 CONTINUED NOTE - – IFRS IFRS 4 573 7 909 6 910 6 730 39 160 -4 128 45 000 19 768 24 230 30 960 -32 757 -13 040 -49 925 135 000 180 000 31-12-04 31-12-04 - 966 IFRS IFRS -664 5 956 2 623 4 342 9 819 1 734 8 017 22 740 10 717 -1 973 -8 208 No. of options exercised No. -10 845 31-12-05 31-12-05 (All amounts in ’000 NOK) (All amounts (All amounts in ’000 NOK) (All amounts CEO CFO Other accruals (vendors) Other accruals liabilities other current Total Breakdown of financial items per 31.12. of financial items Breakdown Loopia-group price purchase Rest sro) Globe Internet (formerly sro 24 Active price purchase Rest payment and severance Restructuring pay vacation for Accrual Total finance expenses finance Total Foreign currency gains currency Foreign income Other finance income finance Total expense Interest losses currency Foreign Other financial expenses Breakdown of financial items per 31.12. of financial items Breakdown income Interest Total Jaap Zuiderveld Thomas Christensen AS) Trading (Aass NOTE 18 NOTE BREAKDOWN OF OTHER CURRENT LIABILITIES CURRENT LIABILITIES OF OTHER BREAKDOWN exposed to foreign currency risk. The loans are subject to interest. As a result of the appreciation of the Norwegian Krone towards towards Krone Norwegian the of appreciation the of result a As interest. to subject are loans The risk. currency foreign to exposed losses. exchange foreign unrealised has had material the parent currency, foreign NOTE 17 NOTE FINANCIAL ITEMS This means that is the parent currency. local subsidiaries in has its to the lent company subsidiary’s amounts The material parent ACCOUNTING FOR REMUNERATIONS IN OPTIONS IN REMUNERATIONS FOR ACCOUNTING do the warrants However, issued. the do warrants not for imply any intrinsic at of value date granting subscription rates The fixed cost remuneration the Therefore, issued. were warrants the date the after value in increase potential the on based value time a have issued. of the warrants the time value represents and equity, profits to that has been charged Members of the Board and employees in Active 24 ASA exercised options in March 2006. A total of 349.499 options were exercised. exercised. were options 349.499 of total A 2006. March in options exercised ASA 24 Active in employees and Board the of Members ASA: 24 and Management in Active of the Board Members by exercised were following the Of these; EXERCISE OF OPTIONS IN 2006: OF OPTIONS EXERCISE NOTE 16 CONTINUED NOTE

NOTES, GROUP 16, 17, 18 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 40 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 41

NOTES, GROUP 19, 20 - - – IFRS -2 053 20 102 -48 190 -74 341 -17 412 -19 465 -19 165 -38 631 -18 528 226 390 -105 913 -228 444 YTD 2004 IFRS -136 -206 16 496 -8 771 -50 442 220 182 -87 347 -65 896 -25 397 -17 671 -17 878 -18 014 -203 685 YTD 2005 Operating result result Operating Net financial items tax before Profit Tax Net profit Personnel costs Personnel expenses Other operating expenses operating Total EBITDA depreciation Ordinary Goodwill dep./writedown PROFIT AND LOSS PROFORMA AND LOSS PROFIT revenue Operating of goods sold Cost CREDIT RISK amount. certain a over order who customers new potential on checks credit performes group the risk, credit the minimise to order In con are Receivables issues. relevant other and shareholders structure, in changes for regularly monitored are customers large The bad debt. for has sufficient provision The group due. when over debt collection and sent to tinuously monitored LIQUIDITY RISK not have decided to implement the The actions to cash of position board considers directors to be healthy. The of board directors unchanged. is paid, remains receivables a customer before risk. The number of days change the liquidity RISK RATE EXCHANGE FOREIGN sub its financed has company parent the that fact the to due rates; exchange currency foreign in changes to exposed is group The effect. and loss profit the risk has a material however effect, cash The risk has an immaterial and expenses. investments sidiaries’ risk. rate exchange the foreign – that alters – or other contracts contracts future any has not entered The group instruments are connected to changes in the interest rate levels, liquidity risk, foreign exchange rate risk and credit risk. The board risk. The board risk and credit rate exchange risk, foreign liquidity levels, rate in the changes interest to connected are instruments below. risks, as described handle these to strategies and approve monitor of directors RATES IN THE INTEREST CHANGES TO RELATED RISKS risk This (leasing). debt term long the to aspects material all in relates rates interest market the in changes with associated risk The income. interest earning in the bank accounts, amounts has substantial that the Group the fact considering is acceptable NOTE 20 NOTE FINANCIAL MARKET RISK FINANCIAL RISK financial the to tied risks the of majority The cash. and facilities overdraft loans, term long of consist instruments financial groups The Proforma figures show group figures as if Active 24 group owned 100% of its subsidiaries in periodes 2004 and 2005, using IFRS. IFRS. using 2005, and 2004 periodes in subsidiaries its of 100% owned group 24 Active if as figures group show figures Proforma to have will companies growing fast for figures proforma the figures, proforma Group the for estimate best the calculate to order In in This the and issue has considered been adressed revenue. for estimate and a reasonable in to calculate fair order be considered purchased the for figures proforma The figures. proforma sro) Online (CP sro Factory Media A24 and Group Loopia the of calculation scratch. from started revenue as the deferred approach, estimation straight-line has used a base (Cybernetix), customer It is emphasised that pro-forma figures have a higher level of uncertainty than historical financial figures. financial figures. than historical of uncertainty a higher level have figures It is emphasised that pro-forma NOK) in ’000 (All amounts The Group acquired Active 24 s.r.o (formerly: Globe Internet s.r.o. in the Czech Republic) as at 01.05.2004. Republic) in the Czech s.r.o. Globe Internet (formerly: s.r.o 24 Active acquired The Group as at 01.09.2005. Republic) (The Czech and CP Online s.r.o as at 01.05.2005, (Sweden) Group the Loopia acquired The Group also been included. has (Poland) Cybernetix base from customer the purchased for figures The proforma The figures for 2004 proforma and 2005 show the best of estimate what the would have been, results as if the group structure as at 31.12.2005. similar in 2004 and 2005, was NOTE 19 NOTE FIGURES PROFORMA -0,51 4 672 30 960 20 170 -49 925 -36 750 -16 580 -16 580 -42 803 -95 159 -13 208 -13 442 -65 049 -17 785 207 204 211 876 211 876 -229 661 NGAAP2004 (all amounts in ’000) amounts (all – – – – – – – – – – – – 0,24 7 569 7 569 7 569 7 569 7 569 -3 264 10 834 Effects of of Effects translation to IFRS IFRS to translation -0,27 4 672 -9 011 -9 011 30 960 -2 608 20 170 -42 803 -65 049 -10 216 207 204 211 876 -49 925 -29 181 -98 423 -13 208 211 876 -222 092 IFRS 2004 IFRS B

A Reconciliation: Profit and loss statement and loss Profit Reconciliation: Taxes Taxes the year for result Ordinary the year for Net profit (in NOK) per share Result Operating result result Operating income Other interest expenses Other interest taxes before result Operating Cost of sales Cost Expenses Payroll assets tangible Depreciation assets intangible Depreciation expenses Other operating expenses operating Total Revenue Revenue Revenue Deferred Net Revenue revenue recognised Total in value is recorded in the accounts. 10.834 KNOK in depreciated goodwill was reversed. goodwill was KNOK in depreciated 10.834 in the accounts. is recorded in value Note A) Note with In IFRS accordance 2 – Share based payments – the of recognition the option expense in the and Profit Loss statement is entry is in the equity. The corresponding required. B) Note decline any that ensure to out carried be to is test impairment annual an Instead, depreciated. be to not is goodwill IFRS, with line In is the group’s date of transition for converting from Norwegian accounting principles (NGAAP) to IFRS. IFRS. to (NGAAP) principles accounting Norwegian from converting for of transition date is the group’s figures. the accounting to has made some adjustments the group opening balance, of the IFRS with the preparation In connection cash flow is The of and effects the revenue group’s from NGAAP transition financial to position, IFRS on the the group’s group’s in this note. explained in ‘000 NOK) (All amounts REPORTING STANDARDS (IFRS) (IFRS) STANDARDS REPORTING with IFRS. in accordance accounts consolidated its has submitted time the company This is the first The principles accounting that are described in a section been have consolidated separate applied when compiling the company’s which 2004, January of 1st at as balance opening IFRS the preparing when and 2004, for figures comparable and 2005 for accounts NOTE 21 NOTE FINANCIAL INTERNATIONAL TO TRANSLATION

NOTES, GROUP 21 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 42 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 43

NOTES, GROUP 21 – – 521 9 014 9 014 3 514 1 830 6 790 3 711 15 746 79 196 17 384 39 160 28 538 20 474 21 570 72 412 36 674 12 133 89 252 49 015 53 247 53 247 155 000 164 014 217 261 144 849 217 261 NGAAP 2004 – – – – – – – – – – – – – – – – – – – IFRS IFRS 10 834 10 834 10 834 10 834 10 833 603 050 603 050 Effects of Effects -592 217 -592 217 translation to to translation 521 9 014 3 514 3 711 9 014 1 830 6 790 15 746 79 196 17 384 39 160 21 570 83 246 36 674 12 133 89 252 64 080 39 372 20 474 164 014 228 095 144 849 228 095 656 297 155 000 652 065 -592 217 -592 217 IFRS 2004 IFRS B C C Total current liabilities liabilities current Total LIABILITIES TOTAL AND LIABILITIES EQUITY TOTAL CURRENT LIABILITIES creditors Trade payable duties Public revenue Deferred customers Preinvoiced liabilities Other short-term Total other equity other equity Total EQUITY TOTAL TERM LIABILITIES LONG liabilities Other long-term liabilities long-term Total Share capital capital Share capital share in, but not registered Paid in group / Other equity reserve premium Share equity restricted Total Other equity earnings Retained Cash and bank deposits and bank deposits Cash CURRENT ASSETS TOTAL ASSETS TOTAL EQUITY equity Restricted Equipment, machinery and computers machinery and computers Equipment, ASSETS NON-CURRENT TOTAL CURRENT ASSETS receivables Accounts expenses Prepaid of goods sold cost Deferred Reconciliation: Balance sheet Balance Reconciliation: NON CURRENT ASSETS base and patents Goodwill, customer Software asset tax Deferred NOTE 21 CONTINUED NOTE two separate lines instead of one line. This correction grosses up the amounts to the original values. the original values. to the amounts up grosses This correction of one line. instead lines separate two Note C) Note earnings shown are in losses/retained that and The the the IFRS require regulations reserve disclosure premium share uncovered – – 83 521 401 401 521 748 -684 -271 5 820 2 184 6 742 -6 646 -3 044 -6 304 -7 571 -6 419 89 252 89 252 22 808 18 008 30 000 53 247 26 699 13 136 24 427 10 322 23 354 23 875 81 762 -16 580 -36 750 -13 170 -16 528 -33 449 NGAAP 2004 NGAAP 2004 – – – – – – – – – – – – – – – – – – – – – – – – – – 684 IFRS IFRS 5 136 3 264 7 569 7 569 3 264 -5 820 10 833 -10 834 Effects of Effects Corrections translation to to translation – – 83 521 401 521 748 -271 6 742 3 264 3 264 2 184 -9 011 -3 044 -6 304 -7 571 89 252 30 000 64 080 13 136 24 427 10 322 23 354 -6 646 -6 419 89 252 27 944 18 008 15 865 23 875 81 762 -13 170 -29 181 -16 528 -33 449 IFRS 2004 IFRS IFRS 2004 IFRS D, E D, A E D B A Calculated wages employee options employee wages Calculated differences rate exchange Foreign on options of social security Introduction capital share but not registered Paid, the year for Net profit pr 31.12. Equity Bank etc. Bank etc. in equity Movement Reconciliation: pr 01.01 Equity of subsidiary exit effect Equity offering Public costs offering Public Net change in cash and cash equivalents equivalents cash and Net change in cash effects rate exchange Foreign in beginning of period. equivalents and cash Cash in the end of period equivalents and cash Cash of: Consisting Cash in purchased companies companies in purchased Cash activities investment from flow Net cash financing activities from flow Cash equity in, but not registered Paid issue equity from Proceeds financing activities from flow Cash Cash flow from investment activities investment from flow Cash assets sale of fixed from Proceeds assets of fixed Purchase assets of intangible Purchase in companies of shares Purchase other receivables from Proceeds Net paid leasing Net paid leasing options employee wages Calculated receivables accounts in Changes creditors trade in Changes other accounts in Changes operations from flow Cash Reconciliation: Cash flow analysis analysis flow Cash Reconciliation: operations from flow Cash tax before Net profit paid tax Income Depreciations assets of fixed of sales Loss/gain NOTE 21 CONTINUED NOTE Note D) Note The of introduction social security on into options the directly was that equity an in 2003, from was error recognised the NGAAP the using 01.01.2004 of equity starting the into incorporated was error this balance, opening IFRS the re-calculating When figures. view. IFRS E) Note IFRS. to of transition at the date be zero deemed to are operations all foreign for differences translation The cummulative

NOTES, GROUP 21 ACTIVE 24 ANNUAL REPORT 2005 | GROUP | 44 ACTIVE 24 ANNUAL REPORT 2005 | PARENT | 45 ------467 -591 2003 Parent 2 613 -8 397 -8 397 -8 397 -7 444 -9 543 -8 397 -8 397 55 052 52 074 54 687 54 687 -49 289 -24 596 -26 206 -68 847 -14 160 NGAAP - - - - - 2004 Parent 2 264 1 415 1 545 -2 562 -2 562 -2 562 -2 562 -6 082 -7 391 74 490 17 000 50 780 53 044 54 459 -95 597 -19 562 -21 803 -17 638 -52 914 NGAAP ------975 -975 -975 -975 -975 -941 2005 Parent 1 152 -5 868 -6 484 -1 464 34 167 48 714 49 866 49 866 -33 677 -19 278 -18 758 -51 330 NGAAP

8 9 2 1

14 14 11

Note (All amounts in ‘000 NOK) (All amounts Information: reserve premium share to Allocated earnings retained to Allocated Taxes the year for result Ordinary the year for Net proﬁt Operating result Operating income Other interest expenses Other interest taxes before result Operating Payroll Expenses Payroll assets tangible Depreciation assets intangible Depreciation Write-downs expenses Other operating expenses operating Total Deferred Revenue Deferred Net Revenue Other Income revenue recognised Total of sales Cost Revenue PROFIT & LOSS, PARENT & LOSS, PROFIT - - - 1 799 8 980 5 807 4 131 4 303 17 000 44 219 71 998 20 799 38 429 73 469 31-12-04 145 467 NGAAP - - - - 3 841 8 812 6 695 1 820 17 000 21 323 60 549 28 675 46 002 31-12-05 102 713 148 715 NGAAP 1 1 7 2 4 5 6

10 Note Total assets Total Accounts receivables Accounts subsidiaries from Receivables expenses Prepaid of goods sold cost Deferred and bank deposits Cash assets current Total Equipment, machinery and computers machinery Equipment, in subsidiaries Investment Other ﬁnancial assets assets non-current Total assets Current (All amounts in ‘000 NOK) (All amounts ASSETS assets Non-current base and patents Goodwill, customer Software asset tax Deferred BALANCE, PARENT BALANCE,

ACTIVE 24 ANNUAL REPORT 2005 | PARENT | 46 ACTIVE 24 ANNUAL REPORT 2005 | PARENT | 47 – - - - - 521 3 711 5 685 5 685 2 765 4 545 5 197 86 492 54 743 58 975 58 975 18 067 35 349 14 884 80 807 31-12-04 145 467 NGAAP - - - - Steinar Sønsteby Steinar 3 827 3 526 2 272 3 538 5 141 Hans Petter Bjerva Hans Petter 87 808 60 907 12 749 12 749 16 915 32 695 10 971 75 059 31-12-05 148 715 654 410 658 237 -597 331 NGAAP 6 8 15

Note Ola Røthe Jaap Zuiderveld Cary Scott Fitchey Scott Cary Chairman of the Board Oslo, 31 March 2006 31 March Oslo, Chief Executive Officer Chief Executive Nina Brink Nigel Wilson Anthony Bay Anthony Deputy Chairman Deputy Provision for negative equity in subsidiaries equity negative for Provision liabilities Other short-term liabilities current Total liabilities Total and liabilities equity Total Current liabilities Current payable company Inter creditors Trade payable Taxes payable duties Public revenue Deferred customers Preinvoiced LIABILITIES debt Long-term liabilities Other long-term liabilities long-term Total Paid in, but not registered share capital share in, but not registered Paid in group equity /Other reserve premium Share equity restricted Total earnings Retained equity Total EQUITY AND DEBT AND EQUITY EQUITY equity Restricted capital Share shares Treasury (All amounts in ‘000 NOK) in (All amounts ------521 230 2004 3 696 7 391 -4 606 -2 580 -3 930 -4 853 -1 799 23 354 23 875 49 122 38 429 38 429 13 010 39 591 31 678 60 992 -95 560 -10 693 -19 562 -11 431 -37 184 -44 219 ------– NGAAP 328 2005 -975 -493 1 941 2 269 7 426 6 736 2 371 1 794 -9 754 -3 213 -2 984 38 429 28 675 28 675 24 324 -13 817 -10 058 -18 828 -16 329 * 3 3 2 1 1, 2 Note Cash and cash equivalents in beginning of period equivalents and cash Cash in the end of period equivalents and cash Cash of: Consisting Bank etc. Proceeds from new long term debt long term new from Proceeds equity in, but not registered Paid issue equity from Proceeds financing activities from flow Cash equivalents and cash Net change in cash Payment of short term receivables of short term Payment in subsidiary increase Capital in companies of shares Purchase in subsidiaries sale of shares from Proceeds activities investment from flow Net cash financing activities from flow Cash Cash flow from operations from flow Cash activities investment from flow Cash assets sale of fixed from Proceeds assets of fixed Purchase assets of intangible Purchase receivables short term from Proceeds Loss/gain of sales of fixed assets of fixed of sales Loss/gain of shares Write-downs Net paid leasing options employee wages Calculated receivables in accounts Changes creditors in trade Changes in other accounts Changes (All amounts in ’000 NOK) in ’000 (All amounts operations from flow Cash tax before Net profit paid tax Income Depreciation CASH FLOW, PARENT FLOW, CASH * See equity reconciliation * See equity

ACTIVE 24 ANNUAL REPORT 2005 | PARENT | 48 ACTIVE 24 ANNUAL REPORT 2005 | PARENT | 49 - - -1 -975 Total 1 941 2 371 60 907 -1 405 58 975 - - - -

-975 2 371 -1 405 earnings Retained -597 331 -597 322 - - - - 497 Share 1 848 reserve 54 744 654 411 premium 597 322

------521 -521 registered share capital share Paid, but not Paid,

- - - - - 24 93 Share 3 827 3 711 Capital

the company before year-end 2004, however the share capital increase was not registered in the Chamber of Commerce before before in the Chamber of Commerce not registered was increase capital the share 2004, however year-end before the company 02.02.2005. Split of Share Premium Reserve to Other Equity to Reserve Premium Split of Share options employee wages Calculated differences rate exchange Foreign the year for Net proﬁt pr 31.12. Equity (All amounts in ’000 NOK) in ’000 (All amounts NGAAP pr 01.01 Equity *) capital share of Register options) exersicing (employees issue Net share EQUITY, PARENT EQUITY,

Net profit for the year is transferred to “Retained Earnings” “Retained to end. at year isNetthe transferred for year profit end year options 2004. before all The from proceeds of these options (TNOK 237.831 521) was paid vested have to Employees *) ------CHANGES IN ACCOUNTING PRINCIPLES IN ACCOUNTING CHANGES The introduction of the new ERP-system has made the calculation and calculation the made has ERP-system new the of introduction The Instead of of recognition more using accurate. revenue months as the calculations, the for revenue new ERP-system nominator/denominator information, more For revenue. recognising and calculating for days uses Company the 2005, During above. recognition” “Revenue paragraph see rec This program. option the to related cost option recognising started entry in the equity. with a corresponding effect has a cost ognition embodied in the assets are expected to be consumed by the entity. by be consumed to expected are embodied in the assets minimum the of value present the calculating in used be to rate Discount payments Lease lease. the in implicit rate interest the is payment lease lease the of reduction and charges finance the between apportioned are bal remaining the on interest of rate constant a achieve to as so liability income. against directly charged are charges Finance liability. the of ance leased Capitalised the over are assets depreciated shorter of the esti reasonable no is there if term, lease the and asset the of life useful mated lease the of end the by ownership obtain will Company the that certainty above). (see lease financial a than other lease a is lease Operational term. cars. company and equipment office (some) for used is lease Operational lease as Operating payments are recognised an expense in the income term. the lease basis over on a straight-line statement ON OPTIONS TAX SECURITY AND SOCIAL AGREEMENTS OPTION board the and management employees, the to granted are options Share time the At allotment. of date the at valued are options The directors. of tax security Social money”. the of “out are options the of all allotment of accepted the to general according for and accounted for is provisioned principles. accounting payable PAYABLE taxes AND TAXES both DEFERRED TAX of consists account loss and profit the in Company the charge for tax tax The Deferred tax. deferred in change the and period the for differences temporary of basis the on 28% of average an at calculated is tax-reducing carry and the loss tax and and values tax accounting between exists that Tax-increasing year. accounting the of end the at forward off. set are period same the in reverse that differences temporary FLOW CASH and Cash method. indirect the using presented is analysis flow cash The liquid short-term other and deposits bank cash, include equivalents cash acquisition from months 3 within cash to converted be can which assets rate. a known and at a minimum risk to date The Company has changed the following accounting2005: principles in annual impairment testing for an asset is required, the Company makes makes Company the required, is asset an for testing impairment annual recoverable amount. An asset’s an recoverable estimate of the asset’s amount is the value fair higher or of unit’s cash-generating an asset’s individual an for determined is and use in value its and sell to costs less asset, unless the asset does not cash that inflows generate are largely the Where assets. of groups or assets other from those of independent amount, the asset recoverable its carrying amount of an asset exceeds In amount. recoverable its to down written is and impaired considered is in discounted value are assessing use, cash the flows future estimated current reflects that rate discount pre-tax a using value present their to of assessments market the time value of money and the risks specific recognised are operations continuing of losses Impairment asset. the to the with consistent categories expense those in statement income the in asset. of the impaired function AND VEHICLES MACHINERY EQUIPMENT, at sheet balance the in recognised are vehicles and machinery Equipment, depreciation Ordinary depreciation. ordinary for deduction a less price cost as The life. useful expected asset’s the over basis linear a on charged is schedules: depreciation the following to according depreciated are sets 3 years equipment and computers EDP-leased years 3-5 machinery and vehicles Equipment, Gains and losses on the sale of such assets are recognised as other or costs. revenue operating LEASING opera and purchases its financing of way a as leasing uses Company The the operational, or financial is lease a whether classify to order In tions. that lease a is lease Financial addressed. been have 17 IAS in guidelines of ownership to incidental rewards and risks the all substantially transfers lease a is lease Operational transferred. be not may or may Title asset. an of equipment”. as “rent to and is referred other than a financial lease The Company has financed its purchases related to its Data Centers (production platform) through a all Since leasing practically company. transferred are of incidental assets to ownership the risks and rewards this lease to is the defined Company, as financial lease. The economic be to expected is asset an which over period the be to considered is life cases the of majority the In users. more or one by usable economically of these The useful life - years. be 3 equal to - to three this is expected benefits economic the which from period remaining estimated is assets ment of a new functionality in the Navision. software accounting The capitalised are amortisedcosts software theover new functionality’s be 3 years. to which is estimated life, useful expected TESTING: IMPAIRMENT indica an is there whether date reporting each at assesses Company The when or exists indication such any If impaired. be may asset an that tion ------VALUATION AND CLASSIFICATION VALUATION GENERAL ACCOUNTING PRINCIPLES ACCOUNTING GENERAL ACCOUNTING PRINCIPLES ACCOUNTING CAPITALISED SOFTWARE COSTS SOFTWARE CAPITALISED develop the to associated costs direct the are costs software Capitalised GOODWILL debt assets, identified above company a of value excess the is Goodwill and contingent liabilities. Amortisation of goodwill is allocated linearly recognised is Goodwill years. 20 to up life, useful expected asset’s the over write-downs. and depreciation accumulated for redused price, purchase to The value of goodwill is on reviewed a regular basis for impairment in different significantly value a indicate might that events with connection book value. from revenue and deferred revenue. However, with the opposite effect. with the opposite However, revenue. and deferred revenue ASSETS INTANGIBLE Typical assets. intangible developed self of consist assets intangible The as intangible developed self from arisen assets intangible of examples to subject are asses Intangble software. to related directly costs are sets time life useful expected The testing. impairment individual and regular is as follows: assets, intangible the Group’s for 3 years Software 3 years up to etc.) rights, (patents, assets Other intangible July 2006 (12 month contracts). We have estimated the implementation implementation the estimated have We contracts). month (12 2006 July 1/24 of with approximately revenue recognised to reduced have effects July 2005. from a 12 month period starting over COSTS PRODUCT and rental line of costs sold, domains of costs of consists costs Product fees to agents. The domain iscost matched with and revenue conse period contract the over basis linear a on recognised is cost the quently has ERP-system new the of implementation The months). 12 (normally for as costs, product deferred and costs product on effects same the got and the customers has paid his the invoice, customer pre-invoiced is reclassified to income. Allto deferred is according revenue recognised ERP- new a implemented group the 2005, July In principle. earning the calculation This of a contains new system. more accurate ERP-system on revenue deferred calculated ERP-system old the As revenue. deferred the basis of months, revenue the deferred calculates new ERP-system on the basis basically are that of The the days. implementation effects and on that a ap stage, later starts point revenue of starting deferring 50% total sales of are proximately shifted a to a month’s later period. The will implementation effects in all material be aspects by complete Bad debts are written off when identified. Other receivables have been have Other receivables off when identified. written are Bad debts losses. future for provision a with reduced value, face to assessed RECOGNITION REVENUE All is revenue as regarded subscription income and is on recognised a Revenue months). 12 (normally period contract the over basis straight-line subscriptions new of sale the from received are that fees connection from atare recognised the time of are sale. paid All up contracts front, and represents customers invoiced Pre period. contract the in non-terminable starts period contract the When yet. started not has that periods contract acquisition cost and actual value. value. and actual cost acquisition RECEIVABLES CUSTOMER carried and recognised are days 15 of maturity normal a with Receivables amounts. uncollectible any for allowance an less amount, invoice original at to items individual of assessment and analysis on based is provision The assess individual an where cases those In feasible. is this that extent the the where approach a common feasible, ment has not been considered is there when made is Provision applied. considered been has sample total debts. the collect to able be not will Company the that evidence objective sified as long term items. items. sified as long term LIABILITIES AND SHORT-TERM CURRENT ASSETS Current assets and short-term liabilities consist of items that duefall within one year from the balance sheet date. No items related to the circular flow of income extend for more than 12 months from the bal sheet date. ance AND BONDS SHARES in and to of shares value the bonds lowest recognised Investments are with revenues. The accounting principle will be described in detail below. detail in described be will principle accounting The revenues. with SHEET IN THE BALANCE CLASSIFICATION Assets and liablilities associated with the circular flow of income are Assets respectively. liabilities short-term and assets current as classified are income, of flow circular the with associated not are that liabilities and liabilities classified if as they current are assets/short-term due within clas are liabilities and assets Other close. year fiscal the after year one flow, movement in equity and footnote information. The accounts have have accounts The information. footnote and equity in movement flow, with and laws and regulations Norwegian in been accordance prepared as of 31.12.2005. principles accounting accepted generally historic about principles fundamental the on based are accounts annual Transactions The prudence. and congruence concern, going date. comparability, transaction cost, the at proceeds the of value current the to recognised matched are are costs and rendered are services when recognised is Revenue The Company accounts consist of consist The profit and accounts Company loss, balance sheet, cash ACCOUNTING PRINCIPLES, PARENT ACTIVE 24 ANNUAL REPORT 2005 | PARENT | 50 ACTIVE 24 ANNUAL REPORT 2005 | PARENT | 51

NOTES, PARENT 1,2 933 933 941 Total -466 Total 2 732 2 984 4 783 3 841 6 484 -1 408 74 461 21 323 55 634 18 827 -53 138 - - - - - 933 933 933 429 656 2 yrs -467 -466 5 yrs 3 983 16 835 16 179 Goodwill -12 852 machinery (All amounts in ’000 NOK) (All amounts (All amounts in ’000 NOK) (All amounts Equipment, Equipment, and vehicles - - - - 941 3 yrs -941 3 yrs 1 799 2 984 4 783 3 841 6 010 57 206 16 965 39 455 17 751 Software -40 241 equipment equipment Leased EDB- Leased and computers and - - 45 -45 420 375 420 Cars 5 yrs Company Company

Accumulated depreciation 31-12-2005 depreciation Accumulated 31-12-2005 Book value 2005 Depreciation useful life Expected Purchase cost pr 31-12-2005 cost Purchase Investments pr 31-12-2005 cost Purchase EDP-equipment and computers” assets Fixed Depreciation 2005 Depreciation useful life Expected Disvestments 31-12-2005 cost Purchase 31-12-2005 depreciation Accumulated 31-12-2005 write-downs Accumulated 31-12-2005 write-downs Reversed 31-12-2005 pr. Book value Intangible assets Intangible pr 01-01-2005 cost Purchase Investments NOTE 1 NOTE ASSETS INTANGIBLE NOTE 2 NOTE FIXED ASSETS - - - 2004 rights value 5 958 5 958 100 % Voting Voting 5 685 5 958 6 463 5 685 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % Group 12 421 12 421 12 421 Present Present - - 328 2005 value 6 482 7 651 12 749 14 133 12 421 100 % Nominal 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % (All amounts in ’000 NOK) (All amounts Ownership Oslo, Norway Oslo, Am Main, Germany Frankfurt Switzerland Austria Vienna, Madrid, Spain Belgium Brüssels, Spain Barcelona, Ireland Sweden Karlstad, The Netherlands Hilversum, UK London, Republic The Czech Prague, Sweden Västerås, Republic The Czech Brno, Poland Warsaw, Ofﬁce Helsinki, Finland Denmark Copenhagen, UK London, 1999 2000 2000 2000 2000 2000 2000 2001 2001 2002 2003 2004 2005 2005 2005 1999 1999 1999 Year of Year acquisition Virtual Internet Ltd *) Ltd Internet Virtual s.r.o.) Internet (Globe sro 24 Active ***) AB (group) Loopia Online) (CP sro Media Factory A24 Spa z.o.o 24 Active Active 24 GmbH 24 Active S.L. 24 Active NV 24 Active SA Interplanet Ltd. 24 Active AB 24 Active **) LaDot Holding BV Active 24 OY 24 Active ApS 24 Active Ltd*) 24 Active Domain AS) (New AS 24 Active GmbH 24 Active GmbH 24 Active Subsidiaries Company Rent for year 2-5 (2007–2011) 2-5 year for Rent 6-> (2012->) year for Rent rent Total Leasing obligations related to ﬁnancial leases to obligations related Leasing Annual rent Obligations at year-end (2006) year next Rent Long term debt term Long debt leasing term Long debt Other long term debt long term Total NOTE 4 NOTE SUBSIDIARIES AND ASSOCIATED COMPANIES AND ASSOCIATED SUBSIDIARIES Nominal value is calculated using half year interest at 4,3%, which equals an annual interest of 8,8%. at 4,3%, which equals an annual interest interest year using half is calculated Nominal value NOTE 3 NOTE OBLIGATION LEASING AND TERM LIABILITIES LONG

NOTES, PARENT 3,4 ACTIVE 24 ANNUAL REPORT 2005 | PARENT | 52 ACTIVE 24 ANNUAL REPORT 2005 | PARENT | 53

NOTES, PARENT 4,5,6 ------97 value Book (‘000) 27 690 18 533 14 228 60 549 7 404 5 807 -1 597 20 799 225 661 31-12-04 31-12-04 -204 862 - - -3 15 Net -43 -15 230 118 -357 -956 -113 -144 proﬁt 3 082 (‘000) 1 398 3 098 Parent Parent -5 150 -4 063 -1 563 -1 811 8 812 -2 923 -3 526 11 735 183 214 31-12-05 31-12-05 -186 740 (All amounts in ’000 NOK) (All amounts in ’000 NOK) (All amounts 3 118 237 -379 -380 3 147 (‘000) Equity 1 106 -3 514 -9 474 -5 252 -1 182 -8 531 -3 120 -1 777 -18 349 -52 348 -63 793 -29 083 - - 10 500 125 100 300 100 100 3 200 No. of 5 000 3 000 4 000 1 000 1 000 1 000 10 000 by A24 100 000 shares held shares 15 119 428 - - 10 total 500 125 100 300 100 100 share 3 200 No. of 5 000 3 000 4 000 1 000 1 000 1 000 10 000 100 000 15 119 428 1 67 24 85 85 134 100 200 103 290 495 418 117 551 103 (‘000) Share 9 133 1 404 capital capital 37 288 overtaking company. The merger will take effect during Q1 2006. effect will take The merger company. overtaking BV. The LaDot group was aquired in 2002. in 2002. aquired was LaDot group The BV. 01.05.2003, and the purchase price was 18,5 MNOK. Virtual Internet Ltd is trading under the name of “Active 24”, and will change its name to “Ac to name its change will and 24”, “Active of name the under trading is Ltd Internet Virtual MNOK. 18,5 was price purchase the and 01.05.2003, is complete. process the merger once Ltd” 24 tive Inter-company receivables (net) receivables Inter-company bad debt for provision Inter-company Total Parent Receivables Accounts receivable Accounts receivable of accounts Nominal value bad debt for Provision receivable of accounts Book value All receivables are due within one year after the balance sheet date. sheet date. the balance after due within one year are All receivables Loopia AB (group) ***) AB (group) Loopia Online) (CP sro Media Factory A24 Spa z.o.o 24 Active parent in of subsidiaries Book value Interplanet SA Interplanet Ltd. 24 Active AB 24 Active **) LaDot Holding BV *) Ltd Internet Virtual s.r.o.) Internet (Globe sro 24 Active Active 24 Ltd*) 24 Active Domain AS) (New AS 24 Active GmbH 24 Active GmbH 24 Active GmbH 24 Active S.L. 24 Active NV 24 Active Subsidiaries Company OY 24 Active ApS 24 Active NOTE 4 CONTINUED NOTE The company has reversed provision for bad debt on inter-company balance with a total of TNOK 18.122, to TNOK 186.740. to of TNOK 18.122, with a total balance bad debt on inter-company for provision has reversed The company parent. back loans to pay will be used to subsidiaries in capital All excess The net of intercompany receivables relate to funds that the parent has lent to its subsidiaries and funds that the parent owes its owes and funds that the parent subsidiaries its has lent to that the parent funds to relate receivables The net of intercompany than less was and payables In 2005 the net of receivables of shares). periods (sale in previous transactions due to subsidiaries bad debt (inter-company). for provision the overall NOTE 6 NOTE BALANCES INTER-COMPANY NOTE 5 NOTE DEBTORS **) LaDot Holding BV is the overtaking company in the merger between Active 24 BV, Active 24 Services BV, Ladot Netherlands BV and LaDot Holding Holding LaDot and BV Netherlands Ladot BV, Services 24 Active BV, 24 Active between merger the in company overtaking the is BV Holding LaDot **) the be will AB Loopia where mergering, of process the in are companies The AB. Webbhotell Loopia and AB Loopia of consists group Loopia The ***) *) Virtual Internet Ltd Virtual is Internet Ltd the in company overtaking the and 24 merger between Ltd Active Virtual Virtual on Internet was Internet acquired Ltd. Ltd *) - - NOK rights Voting 2 134 8 319 2 965 6,38 % 5,82 % 3,67 % 3,57 % 2,19 % 1,81 % 1,80 % 1,57 % 1,22 % 1,11 % 1,10 % 0,81 % 0,79 % 0,76 % 0,65 % 0,59 % 0,52 % 0,52 % -6 596 18 558 11 805 183 214 183 16,19 % 11,99 % 63,06 % 36,94 % 146 029 100,00 % Book value 3 827 237 3 827 237 pr 31-12-2005 - - 0,10 value No. of No. shares Nominal 839 643 693 100 687 500 600 000 465 942 423 038 420 080 310 000 302 000 291 666 250 000 225 000 200 000 200 000 (All amounts in ’000 NOK) (All amounts 6 195 149 4 590 345 2 443 525 2 227 475 1 403 100 1 366 670 24 134 233 14 138 133 38 272 366 6,77 7,99 5,13 1,07 0,85 0,28 2,07 11,65 38 272 366 38 272 366 No. of shares No. Foreign exchange Foreign rate pr 31-12-2005 rate - - 416 1 435 1 013 -7 755 30 213 18 288 17 339 Amount Strømsveien Oslo AS Oslo AS Strømsveien AS Trading Aass Jon K. Folkestad, Total < 1%) (ownership Other shareholders of shares no. Total Tønnessen, Christer Joachim Christer Tønnessen, Eiendom AS Marienlyst Sobona AS Kjell Anders Eriksson, LLC Investments La Bay Hedlund, Johan Asa Egenhandelskonto Norge Abg Sundal Collier State Street Bank & Trust Co. Co. Bank & Trust Street State II AS Venture Seasons Four Inc Xcelera.com Depot Handelsbanken Svenska MP Pensjon KLP Forsikring Asa Egenhandelskonto Securities First List of major shareholders as per 31-12-2005 of major shareholders List Plc Ventures Capital European II B.v. Ventures Renessence International Goldman Sachs Shares Total Share capital consists of: consists capital Share DKK GBP SEK CZK PLN TOTAL Overview over inter-company balances as of 31.12.2005, divided by foreign exchange: foreign divided by as of 31.12.2005, balances inter-company over Overview (*000) Valuta USD EUR CHF NOTE 7 NOTE The company has 1.143 shareholders as at 31-12-2005. as at 31-12-2005. shareholders has 1.143 The company foreigners. by held are shares (49%) 18.590.468 shares; Of the 38.272.366 equal rights. have All shares SHARE CAPITAL AND SHAREHOLDER INFORMATION AND SHAREHOLDER INFORMATION SHARE CAPITAL NOTE 6 CONTINUED NOTE

NOTES, PARENT 6,7 ACTIVE 24 ANNUAL REPORT 2005 | PARENT | 54 ACTIVE 24 ANNUAL REPORT 2005 | PARENT | 55

NOTES, PARENT 7,8 - - - - - rights -460 Voting 1,10 % 0,79 % 0,00 % 0,00 % 0,00 % 0,00 % 0,17 % 0,10 % 0,52 % 0,00 % -9 418 11,99 % 13 040 39 592 14,68 % -17 000 -19 562 -35 721 -12 069 -13 227 -37 234 113 642 31-12-04 31-12-04 -212 179 -466 577 -130 642 -203 477 -254 398 ------No. of No. - - - - shares 65 108 40 000 43 420 080 302 000 200 000 -975 -800 4 590 345 2 569 7 451 -9 351 -8 514 5 617 533 -17 000 -33 519 -32 833 31-12-05 31-12-05 -220 693 -465 738 -130 407 -113 407 -186 144 -245 045 (All amounts in ’000 NOK) (All amounts - - No. of No. options 70 000 41 833 40 555 158 667 117 333 133 667 103 667 370 000 265 000 270 000 1 570 722 Sobona AS Sobona AS Ventures Capital European Ventures Capital European II BV Ventures Renessence AS Fanth Holding AS SS - - - AS Trading Aass - Related party Related Position Chairman member Board member Board member Board member Board member Board member Board repr.) (empl. in board Observer CEO CFO COO Non taxable income Non taxable cost/France) (option Other differences income Taxable forward carry loss Utilisation of tax charge) (in the tax taxes payable Basis for Basis for taxes payable taxes Basis for taxes before Result differences Permanent in subsidiary of shares on sales Loss differences in temporary Changes in subsidiaries of shares Write-down 28% Deferred tax/-tax asset tax/-tax 28% Deferred sheet in balance Not shown sheet in balance asset tax-/-tax Deferred is as follows: the year for result on ordinary charges Tax Leased assets Leased in subsidiaries equity negative for Provision Total forward carry loss Tax sheet in balance tax deferred Basis for Temporary differences Temporary assets Fixed Debtors Thomas Christensen Larsen Jan Sverre Total Nigel Kenneth Wilson Nigel Kenneth Sønsteby Steinar Gruber Bjerva Hans Petter Welde Håkon Jaap Zuiderveld Key employees’ share- and option positions and option share- employees’ Key Name Ola Røthe Bay Joel Anthony S Fitchey Cary Nina B. Brink-Vleeschdraager NOTE 7 CONTINUED NOTE NOTE 8 NOTE TAXES TAXES There are no loans to board members or shareholders other than those described in note 12. in note other than those described or shareholders members board no loans to are There - - – – 6 6 ------42 42 72 72 87 544 544 709 250 950 Parent 4 385 2 296 -5 697 20 819 21 803 31-12-04 46 46 Parent Board of Directors Board Chairman O Røthe 2 599 3 364 -5 821 - - - - - 19 135 19 278 22 31-12-05 (All amounts in ’000 NOK) ’000 in amounts (All 134 501 416

2 082 6 066 Management CEO J Zuiderveld CEO NOTE 10 NOTE FACILITIES OVERDRAFTS DEPOSITS, BANK RESTRICED bank deposits. restricted are bank deposits company’s of the parent TNOK 1.408 as per 31-12-2005. TNOK 9.754 amounting to suppliers to has furnished bank guarantees company The parent Expensed audit fees in 2005 Expensed audit fees Audit fee services Certification services Tax audit) (half year Other audit services Other consulting Total Auditor Guarantees Remunerations to all executives to Remunerations Salaries Pension Other remuneration Loan Remunerations to executives to Remunerations Salaries Pension Other remuneration Loan Guarantees Recharged payroll expenses to subsidiaries *) subsidiaries to expenses payroll Recharged Total Number of employees: Payroll expenses Payroll Wages Social security Other expenses NOTE 9 NOTE ciples for and scope of bonus schemes. of bonus schemes. and scope for ciples The CEO has an agreement that 12 provides months’ pay on termination of employment if his employment is terminated by the Board without reasons. No Board members or other in employees leading positions have an agreement that pay provides on ter mination of employment. ASA. 24 in Active pension agreements no recognised are There Jaap Zuiderveld was appointed temporary CEO on the 01-01-2005 and during 2005 he was (formally) appointed CEO. CEO. appointed (formally) and during 2005 he was on the 01-01-2005 CEO temporary appointed was Jaap Zuiderveld Board) Chairman of the Deputy (formerly: of the Board Chairman appointed Ola Røthe was Chairman of the board) Chairman (formerly: Deputy appointed was Bay Anthony management Executive of consists 3 - is renumeration three fixed by - the persons. TheBoard. The CEO’s Board also sets the prin the and salary fixed of level the both including management, executive of members other for remuneration the for guidelines *) The parent conducts services on behalf of all the companies in the group (administration). These services are recharged to to recharged are services These (administration). in the group on behalf of all the companies services conducts *) The parent key. a distribution to according subsidiaries PENSIONS AND MORE AND PENSIONS WAGES, NUMBER OF EMPLOYEES, REMUNERATIONS, LOANS, LOANS, REMUNERATIONS, EMPLOYEES, OF NUMBER WAGES,

NOTES, PARENT 9,10 ACTIVE 24 ANNUAL REPORT 2005 | PARENT | 56 ACTIVE 24 ANNUAL REPORT 2005 | PARENT | 57

NOTES, PARENT 11,12 92 764 758 338 710 Total 5 558 5 558 5 306 2 696 7 142 4 070 1 065 4 510 -4 255 17 638 31-12-04 payments ------Parent Parent 408 513 919 Over Parent 2 555 2 702 6 408 3 944 1 183 1 448 2 093 2 335 Type of transaction Type fee Consultancy fee Consultancy fee Consultancy -1 983 -1 929 18 758 31-12-05 31-12-05 five years five (All amounts in ’000 NOK) (All amounts (All amounts in ’000 NOK) (All amounts 70 20 Cost 200 85 296 31.12.2004 3 890 3 890 3 509 Between one Between and five years and five 253 414 (A24) Receivable - - - 1 668 1 668 1 001 one year Less than Less (A24) Debt - - - Ola Røthe, Ola Røthe, chairman Sønsteby, Steinar member board Related party Related Nigel Wilson, member board Company AS Fanth Sobona AS Holding AS SS Transactions with related parties can be summarised as follows: be summarised as follows: can parties with related Transactions Total payments on rental and leasing agreements and leasing on rental payments Total Annual operating lease payments lease Annual operating cars Company equipment Office space) (office Rent Provision for restructuring costs in balance sheet in balance costs restructuring for Provision 31.12.2005 costs restructuring for Provision periods previous from costs restructuring for provision Reversed costs restructuring for Provision *) and consolidation reorganisation to in relation costs restructuring for provision Total in the group. processes and consolidation the restructuring- to in relation and costs payment severance includes *) Provision Consulting fees and services and fees Consulting IR/PR activities expenses BOD on receivables Loss *) Management fee Other costs Total Spesification of other operating expenses of other operating Spesification Marketing expenses and sales Travel equipment and office Rent NOTE 12 NOTE PARTIES RELATED The group has entered into various operational leasing agreements concerning office premises, company cars, PC equipment cars, company premises, office concerning agreements leasing operational various into has entered The group option. an extension have agreements leasing of these Most machines. and office agreements. leasing with irrevocable in connection minimum payments matrix is the future The above *) Some subsidiaries pay expenses on behalf of parent. These costs are recharged to parent. Parent recharge all subsidiaries with all subsidiaries recharge Parent parent. to recharged are costs These on behalf of parent. expenses pay *) Some subsidiaries 2005 than in 2004. As a result in been lower have costs rechargeable of these share The parent’s of the cost. share their respective this is that a higher percentage for 2005. The reason for in the account as a “negative”-cost is presented share of this, the parent’s periods. in 2005 than in previous the parent been paid from have costs of the rechargable NOTE 11 NOTE COSTS AND RESTRUCTURING EXPENSES OPERATING OTHER ------70 855 -674 3 225 7 909 2 335 1 992 2 648 46 390 24 020 74 490 14 884 -32 017 -13 040 -39 592 -10 204 -95 597 -21 107 31-12-04 31-12-04 - - - - - 846 490 919 -197 -573 -164 5 443 7 230 2 653 5 956 2 090 2 006 -7 725 17 995 34 167 10 971 -25 018 -33 677 31-12-05 31-12-05 (All amounts in ’000 NOK) in ’000 (All amounts Accrual vacation pay vacation Accrual (vendors) Other accruals liabilities other current Total Breakdown of other current liabilities as of 31.12. as of 31.12. liabilities of other current Breakdown Loopia price purchase Rest Globe Internet price purchase Rest Restructuring Total finance expenses finance Total Net financial items Interest expense (inter-company) expense Interest (external) expense Interest losses currency Foreign in subsidiary of shares on sales/closing Loss in subsidiaries of shares Write-downs in subsidiaries equity negative for provision Increased Other financial expenses Breakdown of financial items as of 31-12-2005 of financial items Breakdown (inter-company) income Interest (external) income Interes receivables inter-company to relating provision Reduced gains currency Foreign in subsidiaries equity negative for in provision Reduction income finance Total NOTE 15 NOTE NOTE 14 NOTE BREAKDOWN OF OTHER CURRENT LIABILITIES OF OTHER BREAKDOWN FINANCIAL ITEMS FINANCIAL ITEMS exposed is parent the that means This currency. local subsidiary’s the in subsidiaries its to amounts material out lent has parent The cur foreign towards appreciation risk. The currency As loans subject to interest. of a are the result to foreign Norwegian krone’s losses. exchange foreign had net unrealised has the parent rency, The company has made sufficient provisions for restructuring costs and potential disbursements regarding disputes. These issues issues These disputes. regarding disbursements potential and costs restructuring for provisions sufficient made has company The subsequent events. to with NGAAP relating in accordance recognised are NOTE 13 NOTE EVENTS SUBSEQUENT

NOTES, PARENT 13,14,15 ACTIVE 24 ANNUAL REPORT 2005 | PARENT | 58 ACTIVE 24 ANNUAL REPORT 2005 | PARENT | 59 AUDITOR’S REPORT - - - - We do not We comment on questions associated with pending ac through communicated be will this needed is guidance additional If It is our strict policy to decline to comment or endorse analyst 24 will not comment upon own activities, market developments. This This developments. market activities, own upon comment not will 24 information. equal to access has market the that ensure to done is MEDIA RELATIONS EFFECTIVE communications maintain to effective 24 It Active is important for with both media. as printed Our as well aim electronic is ensure to its prod on its performance, the that company, editorial coverage anducts with services are the reported accurately benefit of clear information positionand maximum understanding of 24’s Active and aims. RESPONDING TO MARKET RUMORS TO RESPONDING The company does not comment on rumors unless they originate ru to consistently respond will Spokespersons company. the from mors, saying, “It is our policy not to comment on market rumors or speculation.” quisitions, dispositions, litigation or on loss for reserves specific claims. INFORMATION LOOKING FORWARD financial result interim in its guidance earnings will issue 24 Active will cast web The call. conference cast Web the in and release news and non-exclusionary. be fully accessible change materially. if projections release of a news the issue AND REPORTS ESTIMATES ANALYST ana is stock 24 Active the that investors all of interests the in is It lyzed by a broad cross section of brokers and analysts. will,We 24. Active analyze to firms leading of range a encourage therefore, of orestimates our forecasts future financial Active performance. 24 will solely assist the in historical oranalysts correcting factual commentary. QUIET PERIOD 24 Active will follow a policy of quiet period the before release of Active period this In weeks. two least at of results annual and interim ------All share price sensitive information is insider considered infor No Active No 24 other Active employee, than the primary spokespersons mation until it disclosure is disclosed to the according company’s principles. DISCLOSURE PROCESS DISCLOSURE the 24 to strive further precision and Active improve transparency nonpublic and material All substantial development. 24’s of Active information will be disclosed as soon they have been decided on. Material nonpublic information that is inadvertently disclosed to trade may who shareholder any or professionals, investment analysts, the public. to released will be immediately on the information, Active 24’s CEO, CFO and Officer CFO Relations are desig CEO, Investment 24’s Active nated as the to primary respond to inquiries spokespersons made the within others designate may above named The company. the to such inquiries. to respond to Company the in individual from any inquiries to respond may named above, to asked specifically unless media financial or community vestment a spokesperson. do so by statements made in the Company’s annual made statements and in quarterly the reports, Company’s news and earnings releases, letters to speechesshareholders, by site. Web and in contained information employees, the Company’s regulators, investors, analysts, to communications any covers also It Active of relatives and friends and suppliers, customers, media, the of Directors. or Board employees 24 SPOKESPERSONS essary to make reasoned investment decisions about our debt and debt our about decisions investment reasoned make to essary equity securities. Our are designed disclosure to practices give all to this of access fair information whether regardless the investors 24. the Active for or negative is positive information AND REVIEW SCOPE Direc of Board its and 24 Active of employees all covers policy This written and notifications exchange stock in disclosures covers It tors. SHARE REGISTER shares are inregistered The theCompany’s VPS with securities numbermanager account ISIN NO The 0010033590. Company’s ASA. Bank Norge is Nordea POLICY RELATIONS INVESTOR nec information with markets financial provide to seeks 24 Active themarket aswholea with timely andinformation. accurate Such informationwill thetake formofannual reports, quarterly interim reports, press releases, stock exchange notifications and inves tor presentations, as applicable. The Company will also strive to ensure that its progress is monitored by securities analysts. The Company‘s Director of Investor Relations is primarily responsible for relations with Oslo Stock Exchange, brokerage firms and in vestors in general. Therefore the does Company Therefore not intend to distribute dividends in dividend policy will be determined by the Future the years. coming based Board of upon Directors, conditions then including existing, requirements capital condition, financial and earnings Company’s the factors. and other relevant RELATIONS INVESTOR TheCompany will provideshareholders, Oslo Stock Exchange and DIVIDEND POLICY Shares carry equal The rights Company’s to dividend payments. sharehold its to dividend ordinary an paid date to not has 24 Active in the 2003 made Company a of repayment cash to However, ers. NOK million of 106.7 shareholders through approximately a share is to of policy The of the current Directors Board reduction. capital growth to retain fundingfuture profits provide for the Company’s strategy, which may include acquisitions of other businesses. SHAREHOLDER POLICY POLICY SHAREHOLDER

ACTIVE 24 ANNUAL REPORT 2005 | 60 ACTIVE 24 ANNUAL REPORT 2005 | 61 693.100 291.666 310.000 687.500 839.643 465.942 423.038 225.000 250.000 302.000 420.080 6.195.149 200.000 200.000 600.000 1.403.100 2.227.475 1.366.670 2.443.525 4.590.345 24.134.233 DECEMBER 30-12-05 DECEMBER % 1,11 1,10 1,81 1,57 2,19 1,22 0,81 1,80 3,57 3,67 0,76 0,79 0,52 0,52 5,82 0,65 0,59 6,38 16,19 11,99 63,06 shareholders and keeping the stock market and the general general the and market stock the keeping and shareholders at all times. informed public well in of the holders shares table 20 The lists largest following 2005: as at 31 December the company - Total Total Abg Sundal Collier Norge ASA Egenhandelskonto Egenhandelskonto ASA Norge Abg Sundal Collier Oslo AS Strømsveien AS Trading Aass Jon K. Folkestad Eriksson Kjell Anders Kjell Anders Eriksson LLC Investments La Bay Johan Hedlund Tønnessen Christer Joachim Christer Tønnessen Eiendom AS Marienlyst Sobona AS MP Pensjon MP Pensjon KLP Forsikring Asa Egenhandelskonto Securities First Four Seasons Venture II AS Venture Seasons Four Inc Xcelera.com Depot Handelsbanken Svenska European Capital Ventures plc Ventures Capital European II B.v. Ventures Renessence International Goldman Sachs Co Bank & trust Street State OWNER / INVESTOR OWNER 1 7 5 3 2 4 9 6 8 11 17 15 13 12 14 19 16 18 10 20 It is ambition Active 24’s and goal to create value for its As per 31 December 2005 Active 24 had 1143 shareholders. 51% of the shares are are the shares 51% of shareholders. 1143 had 24 2005 Active As per 31 December foreign by owned are % of the shares 49 and shareholders Norwegian by owned shareholders. No 12 on Exchange Stock Oslo the on listed was 24 Active 38.3 was 31.12.2005 of as shares of Number 2004. vember, million. SHAREHOLDERS ------Active 24 has chosen not to comply with article 7 of the Recom the of 7 article with comply to not chosen has 24 Active Documentation relating to the General Meeting shall be distrib be shall Meeting General the to relating Documentation to shareholders for opportunity an provides Meeting General The extraor an call to decide time any at may Directors of Board The pur The Meeting. General the by elected are members Board All All Active 24 shareholders have the same status and the oppor the and status same the have shareholders 24 Active All for General Meetingsprocedures allows for equal 24’s Active Directors with agreement material into enter not shall 24 Active As a supplement to signatory rights and power of procuration next annual General Meeting. annual General next the by elected committee nominating a having not 1) by mendation nominating the for instructions having not 2) and meeting general The Association. of Articles company’s the in stipulated committee Board the that is Recommendation the to non-compliance for reason the by constituted committee nominating a that believes Directors of will of members be the into of well suited Board to Directors take expenses incurred by the company. the company. by incurred expenses 5 FREE TRANSFERABILITY and rights shareholders equal with shares of class one has 24 Active in their transferability. restrictions without any are the shares MEETING 6 GENERAL Ac of all in authority supreme 24’s Active is Meeting General The The affairs. MeetingGeneral elects the members tive 24’s of the of Directors. Board minimum in 14 advance days shareholders uted to the company’s of the set date. may Shareholders choose to vote in the General Meeting through power The of Board attorney. shall of Directors be responsible for ensuring that the resolutions and supporting detailed sufficiently are distributed documentation and information and comprehensive to allow shareholders to form a view on all Meeting. at the General be considered to matters and the management directly. of Directors the Board address Meeting. dinary General COMMITTEE 7 NOMINATING 24 Active has chosen not to have a Nominatingseparate and Committee, the Board ofitself will Directors therefore of the company. Nominating Committee as the serve individuals identify to is Committee Nominating 24’s Active of pose qualified to become Board members, with consistent the criteria recommend to or select to and Directors, of Board the by approved that the the selects Board nominees of Director for the Directors 4 EQUAL TREATMENT OF SHAREHOLDERS AND OF SHAREHOLDERS TREATMENT 4 EQUAL PARTIES RELATED CLOSELY WITH TRANSACTIONS 24 Active is committed to the principle of equal treatment of all including shareholders, minority and and shareholders, to foreign no contain of Association Articles 24’s Active one vote. one share votes of number the on restrictions no differentiation, rights voting rights. of shareholder and no other restrictions be cast that can violation of their rights. for redress effective obtain to tunity of all shareholders. treatment or management of Active 24, or parties closely related to such of Board without persons, the from the company’s prior approval Directors. Active Enterprises, Business of Register Norwegian the in registered within authority of delegation for system internal an adopted has 24 relating the procedures company through and signature approval to tasks various and shall that actions. ensure The Active system and cost of control keep Directors of Board and management 24’s ------Active 24 is a company with high growth ambitions, organically organically ambitions, growth high with company a is 24 Active authori three granted been has Directors of Board the Currently, Today, Active 24 has an equity that accommodates the targets, targets, the accommodates that equity an has 24 Active Today, The group is a delegation working relentlessly correct towards appro as revised and periodically reviewed are Guidelines These Active 24 is governed by executive principles and guidelines that that guidelines and principles executive by governed is 24 Active informa correct through ensured is openness and Transparency In addition, corporate governance provides the structure through through structure the provides governance corporate addition, In Active 24’s objective and main strategy is to position and develop develop and position to is strategy main and objective 24’s Active gov for structure a provides governance corporate 24, Active To a period of two and years will atexpire the latest 18 May 2006 and 14 October 2006 of(two theIn authorisations) respectively. the future, any authorisation to increase the share capital of the of maximum one year. a duration shall have company communicated to the market. the market. to communicated and by theof othertake-over companies. In its annual dividend com the consideration into take will Directors of Board the proposal, needs. and development ambitions, investment growth pany’s authorisa These capital. share company’s the increase to sations tions in Meetings General granted two were different in 2004 for 3 COMPANY EQUITY AND DIVIDEND POLICY EQUITY 3 COMPANY sharehold its for value create to goal and ambition 24’s Active is It 24 ers. Active will at all times ensure that it has a balance strong 24 is continu Active sheet with sufficiently high equity coverage. sufficient is 24 Active of funding the that ensuring on focusing ously and risk profile. strategy targets, the company’s to and adapted and risk strategy, profile of the These company. evaluations are ethical principles Active 24 ensures integrity and honesty. and honesty. integrity ensures 24 Active principles ethical the within bodies governing different the between responsibility of company. Directors of Board the of functioning effective the ensure to priate governance. corporate and high quality and affairs and for the affairs shareholders long-term benefit of 24’s Active and other stakeholders. integrity and transparency, responsibility ensure the company’s other stakeholders. and shareholders its towards tion flow internally within the organisation, to shareholders and external parties. By following unambiguous norms, policies, and which the objectives of the company are set, and the means of deter are performance and monitoring those attaining objectives mined. PRINCIPLES GOVERNANCE 2 CORPORATE principles these adopted formally has Directors of Board 24’s Active its further to (“Guidelines”) guidelines governance corporate its as business 24’s of the Active governance effective providing goal of erning the relationships between the company’s management, its management, its the company’s between erning the relationships Sound stakeholders. other and shareholders its Directors, of Board re and obtaining to critical are governance corporate of principles stake other as well as investors company’s the of trust the taining principles basic observe corporations which to degree The holders. is of an governance good increasingly important factor corporate decisions. investment for Active 24’s purpose asActive 24’s laid down in the Articles of Association is to engage in business connected with the Internet, electronic communication, electronic information and associated activities, including participation in other companies. serv Internet of provider pan-European leading a as company the services. and hosting including domain registration ices, PRINCIPLES ASA 24 Active Gov Corporate for Practice of Code Norwegian the document this (In 2005) meeting GENERAL ANNUAL of as (REVISED as the “Recommendation”) to 2004 is referred 7 December dated ernance 1 INTRODUCTION CORPORATE GOVERNANCE GOVERNANCE CORPORATE

ACTIVE 24 ANNUAL REPORT 2005 | 62 ACTIVE 24 ANNUAL REPORT 2005 | 63 ------Board members, or companies affiliated to Board members, shall shall members, Board to affiliated companies or members, Board The Board of Directors The has Board and of prepared Directors adopted instructions Audit Committee The Audit shall Committee the review work of the Company’s Committee Remuneration levels market to as informed stays Committee Remuneration The Both the Audit andCommittee the Committee Remuneration options share in In the the received past, have members Board Selecting, compensating, monitoring and, when necessary, replac necessary, when and, monitoring compensating, Selecting, andwith to Aligning Directors remuneration the executive key nomination and Board elec Ensuring and a transparent formal man of interest of conflicts potential managing and Monitoring finan and accounting corporation’s the of integrity the Ensuring and communications of disclosure the process Overseeing be able to carry To out its duties the Board of shall Directors when meetings additional with regularly, held are meetings Board The Board ofshall Directors twice a year adopt a schedule for work its for plan a prepare year each will Directors of Board The internal has company the that ensure shall Directors of Board The practices in the future. in the future. practices not 24 assignments for Active accept in addition to the position as a unless Board member, such assignment is initiated by the management of 24 Active and by theapproved Chairman upon of Directors. the Board to notification and guidelines which detailed provide instructions and guidelines management the and Directors of Board 24’s Active of work the for of the company. OF DIRECTORS OF THE BOARD 11 COMMITTEES com following the established has company the being, time the For of Directors: of the Board mittees directly is committee The processes. audit and accounting internal over and retention compensation, appointment, the for responsible independent auditors. sight of the Company’s compen recommends evaluations, on based and, compensation of Compensation Directors. of Board the to systems and levels sation Remunera the by determined be shall Officer Executive Chief the of of the independent Directors. a majority or by tion Committee man the of independent are who members Board of consist shall 24. agement of Active OF DIRECTORS THE BOARD TO 12 COMPENSATION recommend and review annually will Committee Remuneration The Board The compensation. member Board of amount and form the ofwill Directors also a prepare proposal to be agreed by the an nual Meeting General with to respect the of annual remuneration the Directors. company as for their remuneration work 24 as Active Directors. does not wish to the exclude possibility of similar remuneration ing key executives and overseeing succession planning. succession and overseeing executives ing key shareholders. its and of the company interests longer term tion process agement, Board members and including shareholders, misuse of transactions. party and abuse in related assets corporate cial including reporting the systems, independent audit, and that for systems particular, in place, in are control of systems appropriate compliance and control, operational and financial management, risk standards. and relevant with the law The company. the from information relevant all to access full have at advice external obtain required, as also, may Directors of Board expense. the company’s necessary. six months. be held during the next meetings to Board with the aim to purpose, the strategy and company’s perform evaluation an upon based revised be shall plan The ance/execution. plan. year’s of the previous the which of guidelines and regulations statutes, to related control ethical and base value 24’s Active including to, subject is company guidelines. ------pendent auditor, or an pendent immediate member family auditor, is affiliated in 24’s Active by capacity in a professional with or employed or dependent auditor; Active the employs which company a of Directors of Board the 24 or Director an immediate family member as an executive officer. connections; connections; 24; of Active officer member is an executive fees and committee other than Director Monitoring the effectiveness of the company’s governance prac governance company’s the of effectiveness the Monitoring All Directors will have an equal responsibility for the management management the for responsibility equal an have will Directors All functions: key will fulfill certain of Directors Board 24’s Active action, of plans major strategy, corporate guiding and Reviewing • the Director is affiliated with or employed by Active 24’s inde 24’s Active by employed or with affiliated is Director the • is an on 24 Active executive the compensation of committee • • the Director is not independent of Active 24’s the is main Director not business independent of 24’s Active • family immediate an or 24, Active by employed is Director the • 24, Active from compensation direct any receives Director the • Further, at least two of the shareholder elected Directors shall be be shall Directors elected shareholder the of two least at Further, A Board member will be “independent”considered only if the Employees who part are of Employees the management 24 shall of Active The Chairman of the shall Board of be Directors elected by the two maximum of period a for elected be shall member Board A of has of a eight members, total of Directors Board 24’s Active The composition of the Board of Directors shall reflect the com the reflect shall Directors of Board the of composition The and divestitures. and divestitures. as needed. and making changes tices and organisational issues. issues. and organisational activities. of the company’s risk annual policy, budgets and business plans; setting perform ance objectives; monitoring implementation and per corporate acquisitions expenditures, capital major overseeing and formance; 10 RESPONSIBILITIES OF THE BOARDS OF OF THE BOARDS 10 RESPONSIBILITIES DIRECTORS the management for is responsible of Directors Board 24’s Active The operations. its of organisation proper the and company the of company’s the supervising for responsible also is Directors of Board including requirements statutory with accordance in management budgets finance, strategy, of supervision overall the for responsibility independent of the existing Board of Directors and current manage current and Directors of Board existing the of independent “independent” if: will not be considered ment. A Director independent of the main shareholder(s) of the company. of the company. independent of the main shareholder(s) member Board the that determines affirmatively Directors of Board has no direct or indirect material relationship with the Company, determi independence its making In member. Board a as than other facts relevant all consider broadly will Directors of Board the nations, An and independent circumstances. must Director be completely which seven are elected by the annual General Meeting and where where and Meeting General annual the by elected are seven which the remaining one is elected by the The employees. Nominating Committee will periodically evaluate whether a larger or smaller be preferable. would of Directors Board 9 INDEPENDENCE OF DIRECTORS A majority of at the shall least five, Directors, be independent Di rectors. independently of any and special the interests Board of Directors body. as a collegiate effectively function can members. as Board not be elected Assembly. the Corporate by elected Meeting, unless General years. 8 BOARD OF DIRECTORS AND CORPORATE AND CORPORATE OF DIRECTORS 8 BOARD ASSEMBLY 24. in Active Assembly is no Corporate time being, there the For expertise, for need 24’s Active and shareholders all of interests mon The composition of capacity and the diversity. Board of Directors operate and act may Directors of Board the that ensure to aim shall consideration common interests of all shareholders and therefore to to therefore and shareholders all of interests common consideration member candidates. Board and suitable point out competent - - - Accurate management systems are the foundation of correct in correct of foundation the are systems management Accurate each audits internal two or one out carries 24 Active addition, In system common one project a implemented 24 Active 2003, In relation in Directors of Board the with meetings attend auditors The compa the engage may 24 Active of Officer Financial Chief Only to annually report to required is auditor independent 24’s Active The shall Board of annual arrange Directors meetings with the shall hold a meeting with the of at auditor The Directors Board least once a in once least year which neither the CEO nor any other member of the management is present. MANUAL EMPLOYEE 17 company’s the which in Manual Employee an prepared has 24 Active contains, Manual Employee the Further, described. is goal and vision of employees all to applicable guidelines general various alia, inter sick salary, hours, working employment, to respect with 24 Active termination leave, of employment and HSE (Health Security and Environment). accepted accounting principles, and the executive orders from the from orders and the executive principles, accounting accepted of Directors. Board and reporting. control the company’s to and contribute formation may, and time each from vary audits internal such of scope The year. procedures, accounting of review as such topics to relate alia, inter strategy. and branding communication in all entities which includes ordering, accounting, and customer identify to tool better a management the gives system This support. challenges. and manage future 24 Active for the risk profile POLICY 16 AUDITOR as their independent auditor. & Young Ernst uses 24 Active remunerations for account report annual the in notes The audit. the to fees. consulting and costs audit by split auditor the to Before services. auditing than tasks other out carry to auditor ny’s seek shall 24 Active purposes, consulting for auditor the engaging engage or an alternatively ex own human its to resources exploit financial adviser. ternal independence, concerning aspects all on Meeting General Annual the if any. policy, 24’s with Active conflicts including possible principles, accounting risk areas auditor to the review Company’s and including identified weaknesses routines, control and internal improvement. for proposals ------Active 24’s CEO, CFO and Investor Relations Officer are Relations desig and CFO CEO, Investor 24’s Active Governance structures and structures policies. 24 Active will Governance disclose any markets financial the with communicate frequently will 24 Active Officer. Relation Investor own its appointed has organisation The Related party transactions. Active 24 will fully disclose any mate any disclose fully will 24 Active transactions. party Related mar the to disclose regularly will 24 Active factors. risk Foreseeable disclose proactively will 24 Active stakeholders. regarding Issues Major share ownership and voting rights. 24 Active will regu and Directors of Board the of members for policy Remuneration Company objectives. In addition to Active 24’s commercial objec commercial 24’s Active to addition In objectives. Company Disclosure Disclosure will include, but not be limited to, material informa The financial and of results operating 24 Active the company. In the past, the Board of Directors has made resolutions relating relating resolutions made has Directors of Board the past, the In For information, guidelines for compensation to the management management the to compensation for guidelines information, For decision The finalof approval theCommittee’s Remuneration Active 24 incorporate one 24 Active singleincorporate financial central department re sponsible for financial reporting and internal The control. depart general regulations, and rules keep entities the that ensures ment of all shareholders, all of which are essential aspects to Active 24. 24. Active to aspects essential are which of all shareholders, all of strict Exchange’s Stock Oslo follows 24 Active company, listed a As in all matters. regulations made inquiries to respond to spokespersons primary the as nated the company to 15 INTERNAL CONTROL changes in the contents of its corporate governance policy and the and policy governance corporate its of contents the in changes which it is implemented. by process and the media. Going the forward, company has high expectations in relation to treatment equal and market the to information timely and correct rial related party transactions to the market, including whether they they whether including market, the to transactions party related rial terms. at arms-length and on normal market been executed have risks. material foreseeable reasonably regarding information kets materi may that stakeholders to relevant issues key on information of the company. the performance ally affect larly disclose its ownership structure as well as any changes to rights. shareholders Board about information disclose also will 24 Active executives. key other process, selection the qualifications, their including members, independ as regarded are they whether and directorships company of Directors. the Board ent by will disclose interim financial three every months results and an pre are reports financial The year. every of end the at results nual with pared in Norwegian accordance regulations accounting and the guidelines of the Oslo Stock Exchange including Norwegian standards. accounting ethics, business to relating policies disclose will company the tives, commitments. as other public policy as well the environment 14 DISCLOSURE AND TRANSPARENCY 14 DISCLOSURE 24 timely Active is to correct, and committed providing adequate financial information in to its shareholders relation to the group’s annual and quarter through obtained is This position. business and presentations. and investor reports, tion on: Board of Directors. of Directors. Board to issuance of share options to within employees the framework stipulated in authorisations granted without further notice to the Meeting. the will General Going of Board make forward, Directors a judgment as to whether the Meeting General shall be informed programs option share of use to prior guidelines and framework of employees. for tiveness of the company’s executive compensation to programs executive tiveness of the company’s officers corporate of motivation and retention attraction, the ensure the of interests the with leadership key of interest the align to and shareholders. company’s Meeting. the annual General for shall be presented on compensation to management place takes by decision of the 13 COMPENSATION TO MANAGEMENT MANAGEMENT TO 13 COMPENSATION Thewill Committee Remuneration annually thereview competi

ACTIVE 24 ANNUAL REPORT 2005 | 64 GLOSSARY

ADS Active Dedicated Server ASP Application Service Provider CAPEX Capital Expenditure Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment. CCTLD Country Code Top Level Domain CRM Customer Relationship Management – CRM entails all aspects of interaction a company has with its customer, whether it be sales or service related. CTLD Country Top Level Domain Churn Gross customer attrition – defined in percentage of customerbase Dedicated hosting Hosting services where the customer with an Internet site or -service has one or more managed dedicated servers. Deferred revenue Revenue that is considered a liability until it becomes relevant to the business at hand, such as a payment received for work that has not yet been performed. Domain name An unique name connected to a Registrant that enables a mapping between IP addresses in the Domain Name System (DNS) Domain registration The process defined by the Registry in their domain name policy, resulting in word se- quences being recorded in the appropriate directory, making it easier to access web pages EBIT Earnings Before Interest and Taxes EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization ERP Enterprise resource planning: inventory control, order tracking, finance and human resources. EV Enterprise Value FAQ Frequently Asked Questions GTLD Generic Top Level Domain TLD Top Level Domain Hosting Term for a service which enables users to place their own service or internet sites on the Internet ICANN Internet Corporation for Assigned Names and Numbers – the international organization, which is responsible for allocating IP addresses and managing the domain name system. IFRS International financial reporting standards IPO Initial Public Offering ISP Internet Service Provider M&A Mergers & Acquisitions Navision Microsoft Navision is a complete ERP business solution that now forms the core back office system of Active 24. OEM Original Equipment Manufacturer (White label)- a company that buys a product and incorporates or re-brands it into a new product under its own name. OSE Oslo Stock Exchange P/E Price/Earnings R&D Research and Development Registrant Holder of a domain name Registrar An entity authorized by the Registry to act on behalf of the Registrant Registry Administrator of the top level for GTLD or CCTLD RRA Registry Registrar Agreement, i.e. the contract between the Registry and the Registrar Shared hosting The most basic hosting service. A term for hosting services where many internet pages are stored on the same server and operation is standardized. SLA Service Level Agreement. The SLA defines the contract between Active 24 and the customer. SME Small and Medium-sized Businesses, defined by Active 24 as businesses with between 6 and 200 employees. SOHO Small Office, Home Office, defined by Active 24 as a term for companies with 1–5 employees. NORWAY CZECH REPUBLIC NETHERLANDS SWEDEN UNITED KINGDOM LOOPIA AB (headquarters) Active 24, s.r.o. Active 24 Active 24 Active 24 Kopparlundsvägen 7B, Active 24 Plánickova 1 Arendstraat 29, Tynäsgatan 12, 5 Elysium Gate 721 30 Västerås Fjordalléen 16 162 00 Praha 6 Rotorgebouw Magasin 1 126–128 New Kings Sweden P. O. Box 1519, Vika – Petriny Postbus 317 P. O. Box 5274 Road N–0117 Oslo, Norway Czech Republic 1200 AH Hilversum S–650 05 Karlstad London SW6 4LZ www.active24.no Netherlands Sweden United Kingdom www.active24.com www.active24.cz www.active24.nl www.active24.se www.active24.co.uk www.loopia.se