Positive result development - 01.09.2001 / 31.08.2002.

M2M
The turnover has not grown because the R&D work has taken longer than expected. The changes have proven to be good. The new Motorola processor enables us to deliver the card with various processors from 32 kB up to 512 kB. The Meritie M2M card is now in final tests and the mass production will start soon.

We have signed contracts with major mobile phone operators. We have interesting customer cases that have already started. In Q3/02 we are able to start with Application Developer Kit shipments (first samples).

Software
Meritie has also developed helpdesk software further. We have ordered a new version of Meritie M2M 1.0 version. This will be Meritie Helpdesk 2.0 version. This will be available in Q4/02.

Hosting services
Meritie starts with Hosting services 01.10.2002. We have started to offer Hosting services in three countries. We expect to have +200 customers within the next 6-9 months time. The hosting services have been developed for some months. We have employed suitable personnel for this purpose. We will officially launch this product 1 of October 02.

Electronic components and accessories
Meritie has experience and good connections to China. We have been buying components and other items for several years. We can supply various components very cost effectively.

Overall - we expect the turnover to grow rapidly within the next 2 quarters.