Year-end Report for the financial year 2005 including Interim Report for Q4 pertaining to the period October 1 – December 31, 2005

February 20, 2006

The Group’s net income rose to MSEK 220.9 (69.4, proforma 2004), corresponding to SEK 5.9 (2.0) per share. Shareholders’ equity rose to MSEK 792.5 (608.8), amounting to SEK 21.3 (16.4) per share. The equity/assets ratio amounted to 94.4 % (94.8). Cash and cash equivalents, including holdings in Nove Capital Fund, amounted to MSEK 303.3 (88.3).

The four largest private holdings showed growth in revenues of between 24 % and 145 %. The growth also resulted in improved cash flows and margins. The growth trend is expected to continue during 2006. The total book value for these four holdings in the Group amounted to MSEK 457.

The performance of the Nove Capital Fund continued to be satisfactory in the fourth quarter. Since the start in May 2005, Novestra’s returns have amounted to MSEK 107.3, equivalent to growth in value of 57 %.

The management and the Board of Directors have evaluated the potential divestment of the private portfolio in its entirety and have concluded that it will be more favorable to the company’s shareholders if the holdings are sold in phases.

The Board of Directors proposes a dividend of SEK 2.00 (SEK 1.00) per share for the financial year 2005. The Board of Directors has instructed the management to evaluate the possibilities to distribute the company’s liquid assets to shareholders in 2007.

“Our private portfolio companies have continued to perform well. The growth is expected to continue in 2006 and we look forward to improved profitability. With the current market conditions, the prospects for continued appreciation in value and the potential for attractive exits are very good in the next 12 to 18 months,” says Novestra’s Managing Director Peter Ekelund.

About AB Novestra

Novestra is an independent investment company with a portfolio of investments in a number of privately held growth companies including Bytek Systems AB, Explorica, Inc., MyPublisher, Inc., Netsurvey AB, Qbranch AB and Strax Holdings, Inc.

In addition, Novestra has an investment in Nove Capital Fund, that primarily invests in public companies which are considered to have a value potential because of special situations such as reconstructions, turnarounds or for other reasons offer a significant upside potential and therefore an interesting risk/reward.

The Novestra shares are listed on the O List, Attract 40, of the Stockholm Stock Exchange.

For further information regarding AB Novestra, reference is made to

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