CEO outlook

I am very pleased with the strong result in the fourth quarter. We have restored growth in our services business, with a modest growth in consulting revenue of 4% in fourth quarter y-o-y and a 5% growth from the first half to the second half of 2007. Year over year our net sales per employee increased 13% in the quarter. Our margins exceeded the 10% threshold and the order intake was good in the quarter. All in all execution was just in line with our plans and I want to congratulate our staff; they can be really proud of their achievements. The collaboration with our key clients is developing really well, and we continue to see very interesting and demanding tasks coming our way. We are confident that we are on a very good track forward with our focused approach to the mobile device industry and mobile Internet sector. A challenge for us is to secure enough scale to respond to the increasing demand from our key clients. In the beginning of 2008 we will focus on increasing our capacity and flexibility by accelerating recruitment and retraining some staff. While this enables organic growth during 2008 and into 2009, it is expected to put some pressure on our margins in the beginning of the year.

René Svendsen-Tune, President and CEO of Teleca