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Q3 2009Quarterly Report

24SevenOffice ASA 3Q09

Positive net results for 3Q09 24SevenOffice ASA had a positive operating profit before depreciation (EBITDA) of MNOK 1.5 compared to MNOK 0.1 for 2Q09, and a positive net result. Operating revenue year to date 2008, up 60 % compared to YTD 2008. The company's operating revenue in 3Q09 was MNOK 17.2. Highlights 3Q 2009

Positive net results for 3Q09.

Operating revenue YTD 2009, up 60 % compared to YTD 2008

Operating revenue in Sweden up 231% from 3Q08. 21 % growth in software revenue, compared to 3Q08.

Approximately 90% of the company's revenue is based on recurring income.

Continue to deliver positive EBITDA according to earlier announced plans.

Ongoing cost reduction program has achieved full effect. Continuous focus on cost

efficiency.

Listed on Deloitte Technology Fast 50 program. One of the foremost technology award programmes, ranking of the country’s 50 fastest-growing technology companies, based on percentage growth over five years. The fast 50 programme honours business growth, technological innovation and entrepreneurial spirit.


Financial Review - Third Quarter 2009 Operating revenue reached MNOK 17.2 in 3Q09. YTD09 operating revenue, up 60 % compared to YTD08. Total operating expenses ended at MNOK 16 in 3Q09 compared to MNOK 18.1 in 2Q09. This resulted in a positive EBITDA of MNOK 1.5 in 3Q09 compared to MNOK 0.1 in 2Q09.

All numbers in MNOK The company continues to deliver positive EBITDA according to earlier announced plans, and additionally delivers a positive net result due to summer vacations and hence lower personnel cost. Ongoing cost reduction program initiated in 4Q08 has achieved full effect and the company continues its focus on cost efficiency and profitable growth. Cash and cash equivalents were MNOK 5.8 at the end of 3Q09. Segment Information In the software segment, operating revenue from software licenses totaled MNOK 8 in 3Q09, up 21% from 3Q08. Due to summer vacation and as a result of the global financial crises there has been a decrease in our income related to consultants and start up fees. This market is now steadily improving, and further improvement is expected for the next quarter. In the service segment, operating revenue totaled MNOK 7.5 in 3Q09, unchanged from 3Q08, due to closure of two unprofitable departments in Evje and Bodø, initiated by our cost reduction program. In the Integrated systems segment, operating revenue totaled MNOK 2.7 in 3Q09, up 23% from 3Q08. Operating revenue in Sweden totalled MNOK 1.6 in 3Q09, up 231% from 3Q08.

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*Q109 adjusted for extraordinary revenue due to annual reports and tax papers for accounting customers. Lower revenue in 3Q09 due to close down of two unprofitable departments in Evje and Bodø. All numbers in MNOK **Companies invoiced directly by the company and accumulated customers including accounting customers through partners ***COGS means Cost of Goods Sold

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Business Update Robust Business Model 24SevenOffice’s revenue is based on recurring revenue in all business segments and is less dependent on new sales than the rest of the IT market. All services delivered in all segments are in the outsourcing industry, which is predicted to benefit in economic recession as companies try to find ways to save expenses. The negative impact in today’s market is an increased number of bankruptcies among existing customers and an increase in downgrades of number of users on customer contracts due to general employee reductions among SMBs. Consolidation and Synergies The focus going forward is to integrate the acquired businesses in order to realise synergies of cross-sales, know-how, technology, administration, costs and routines. Cost Reduction Program The company introduced a cost reduction program in 4Q08. Main focus has been to consolidate acquired business units, centralize and close down small departments outside major cities. The cost reduction program has now achieved full effect, but the company continues its focus on cost efficiency. About 24SevenOffice ASA Group 24SevenOffice has three independent business units, with significant synergy to each other and with services to the same customer segments: small and medium-sized businesses (5 - 300 employees). Customers are mainly small businesses (5 - 30 employees) in all sectors and medium-sized enterprises (30 - 300 employees) in the market segments: business knowledge and service industries. The business units are:

1. IT business solution with a complete system portfolio of ERP, CRM, project and collaboration tools to the SMB market delivered as "Software as a Service" (SaaS).

2. Telecom solution delivered as an Internet service (SaaS). Includes switchboard services and IP telephony value-added services, through integration with the company's business solution. In addition, the unit offers mobile telephony solutions with value-added.

3. Accounting and payroll services, including financial advisory services for the SMB market. We offer accounting services for the Norwegian and Swedish market, currently employing about 45 accountants.


All solutions and applications are SaaS based. SaaS technology (also described by the term "Cloud Computing") gives you access to all applications and services through the web browser, and hence there is no need to invest in expensive hardware or software licenses. The business model is lease-based service agreements. 90% of the company's revenue is recurring income from one year to the next, and the company's future earnings is, therefore, more predictable and secure than other software and IT service providers who are dependent on significant new sales of licenses and development projects to achieve profitability. We have more than 10 years of experience of delivering SaaS applications over the Internet, and our combination of SaaS-technology, system portfolio and the integration of Internet services to the SMB market make us the leading company in Europe in our segment. Software as a Service (SaaS) SaaS is short for Software as a Service and is the term used for software where an application is hosted as a service provided to customers across the Internet through the web browser. This delivery model eliminates the need to install and run the application on the customer's own computers and servers, thus freeing resources normally used to software maintenance, ongoing operation, it-consultants, and support. Using SaaS also reduce the up-front expenses and capital investments of software purchases, through less costly, on-demand and pay-as-you-go pricing where the customer pay a fixed monthly fee per user per month. IDC analytics predicts that:

• The SaaS market will increase by 27 % annually during the next four years, contrary to traditional local software installations which are predicted to grow by only 4 % annually during the same period.

• Enterprise resource planning applications (ERP) represented 55 % of the total SaaS market in 2008 and are predicted to share an equal share in 2012.

• The global SaaS market revenue was 9 billion USD in 2008 and is predicted to grow to 23 billion USD in 2012

Gartner analytics predicts that:

• Approximately 65% of all European companies has started to use at least one SaaS application by 2010

• SaaS will be a common part of companies’ IT architecture by 2010 • SaaS usage will double for small and medium sized companies by 2010 • Dedicated costs to SaaS will increase more than 25% annually • 30% of all new software in the business market will be delivered as SaaS by 2012

NetSuite (www.netsuite.com) and Salesforce (www.salesforce.com

) are two well known SaaS companies based in USA. NetSuite is the first and largest SaaS based integrated CRM and ERP system and listed at the New York Stock Exchange. Larry Ellison (Oracle) is the major share holder in Netsuite, which is the company with a product portfolio and strategy most comparable to 24SevenOffice.

Salesforce is the first and largest SaaS based CRM system and listed at the New York Stock Exchange. The company is the largest SaaS company and one of the key drivers of the SaaS market space. The company offers a standalone CRM application, thus offering


less functionality than 24SevenOffice. Visit http://www.saas-showplace.com/

for useful reports, etc on SaaS.

Peer Comparison 24SevenOffice, Netsuite and Salesforce are compared on valuation based on price/sales and growth rate year over year. The comparison is based on latest published quarterly results. Salesforce results are from quarter ended August 20 2009, Netsuite results are from 2Q09 and 24SevenOffice results are from 3Q09.

Quarterly results are multiplied with 4 to estimate comparable yearly sales for each company. Valuation is based on market cap Aug. 13. 2009 divided by estimated sales. USD exchange rate is based on rates NOK=USD Aug. 13. 2009. Growth is measured year over year with same quarter last year. There are many factors influencing a company’s valuation. Estimated valuation based on price / sales and growth shows significant differences between 24SevenOffice and the two main competitors in the SaaS industry. Financial Calendar 24SevenOffice will present its 4Q09 figures on February 18th 2010.

Oslo, October 26st 2009 The Board of Directors

24SevenOffice ASA

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Profit and loss statement

(all figures in NOK 1.000)

Q3 - 2009 YTD 2009 Q3 - 2008 YTD 2008 2008RevenueOperating Revenue 17 248 54 432 15 261 34 304 50 741

Other Income 310 310 - 365 367

ExpensesCost of sales 4 547 12 999 2 818 5 997 9 767 Wages and salaries 6 714 27 780 8 028 23 545 35 863 Other operating expenses 4 764 17 655 5 648 14 951 26 077 Total operating expenses 16 026 58 434 16 495 44 492 71 707

EBITDA 1 532 (3 692) (1 233) (9 823) (20 599)

Depreciation, amortisation & write-down 1 279 3 726 1 123 2 644 3 849

EBIT 254 (7 418) (2 357) (12 467) (24 447)

Financial income (51) (161) (145) (714) (965) Financial expenses 194 741 34 190 294

EBT 110 (7 998) (2 245) (11 943) (23 777)

Taxes 48 90 (839) (1 056) (1 647)

Net profit / loss 63 (8 088) (1 407) (10 887) (22 130)

Attributable to:

Minority Interests 60 (451) 307 371 369 Equity holders of the parent 3 (7 637) (1 714) (11 258) (22 499)

Average no. Of shares 14 626 13 941 13 271 13 266 13 294Basic EPS 0,00 -0,55 -0,13 -0,85 -1,69


Balance Sheet


ASSETS 30.09.2009 31.12.2008 30.09.2008

Non current assetsDeferred Tax Asset 621 409 674Development cost 7 293 6 281 5 200Goodwill 22 037 21 024 20 254Customer bases 4 884 6 445 6 965Brand name 962 962 962Equipment 1 840 3 006 2 577Other non-current assets 33 25 112Total non current assets 37 669 38 151 36 744

Current assetsInventory 87 98 103Trade receivables 8 556 9 563 7 316Other current receivables 8 523 8 295 7 029Cash and short-term deposits 5 802 6 924 9 714Total current assets 22 968 24 879 24 163

TOTAL ASSETS 60 638 63 031 60 906

EQUITY AND DEBT 30.09.2009 31.12.2008 30.09.2008

EquityShare Capital 1 755 1 605 1 605Other reserves 95 633 90 933 90 933Translation reserve -162 -151 -35Retained Earnings -87 394 -79 757 -68 516Equity before minority interest 9 832 12 630 23 987

Minority 2 945 3 149 3 151

Total equity Capital 12 777 15 779 27 138

Liabilities

Debt to credit institutions 5 257 1 870 1 154Sellers Credit 12 074 11 060 10 290Deferred taxes 2 051 1 748 2 604Total non current liabilities 19 382 14 678 14 048

Accounts payable 8 159 8 061 3 570Deferred revenue 3 801 3 747 2 491Public duties payable 2 816 3 045 2 471Debt to credit institutions 5 700 3 530 0Other current liabilities 8 004 14 192 11 188Total current liabilities 28 480 32 574 19 720

Total liabilities 47 861 47 252 33 768

TOTAL EQUITY AND LIABILITIES 60 638 63 031 60 906


Statement of changes in equity


Q3 - 2009

Share Share Translation Retained Minority Totalcapital Premium Differences Earnings Total Interest Equity

Equity 31.12.2008 1 605 90 933 -151 -79 757 12 630 3 149 15 779Currency translation differences - - -11 - -11 - -11Equity Issue 150 4 850 - - 5 000 - 5 000Equity Issue expenses - -150 - - -150 - -150Changes due to acquisitions - - - - 0 247 247Net profit for the year - - - -7 637 -7 637 -451 -8 088Equity 30.09.2009 1 755 95 633 -162 -87 394 9 832 2 945 12 777

2008

Share Share Translation Retained Minority Totalcapital premium Differences Earnings Total Interest Equity

Equity 01.01.2008 1 592 89 905 -5 -57 258 34 233 - 34 233 Equity issue 14 1 001 - - 1 014 - 1 014 Currency translation differences - - -146 - -146 - -146 Own shares - 27 - - 27 - 27 Changes due to acquisitions - - - - - 2 780 2 780 Net loss for the year - - - -22 499 -22 499 369 -22 130 Equity 31.12.2008 1 605 90 933 -151 -79 757 12 630 3 149 15 779

Q3 - 2008

Share Share Translation Retained Minority Totalcapital Premium Differences Earnings Total Interest Equity

Equity 01.01.2008 1 592 89 905 -5 -57 258 34 233 - 34 233 Currency translation differences - - -29 - -29 - -29 Transactions with own shares - 27 - - 27 - 27 Equity Issue 14 1 001 - - 1 014 - 1 014 Changes due to acquisitions - - - - - 2 780 2 780 Net loss for the year - - - -11 258 -11 258 371 -10 887 Equity 30.09.2008 1 605 90 933 -35 -68 516 23 987 3 151 27 138

Attributable to equity holders of the parent




Cash Flow Statement

(all figures in NOK 1.000)YTD - 2009 YTD - 2008 2008

Operating Activities Operating earnings before interest and taxes (EBIT) -7 418 -12 467 -24 447Depreciation, amortisation & write-down 3 726 2 644 3 849Net financial items 580 -524 -671Cash earnings in operations (4 272) (9 299) (19 928)

Changes in working capital -5 282 -7 854 867Cash flow from operating activities (9 554) (17 154) (19 061)

Investment activities Development costs to balance sheet -2 145 -3 017 -4 699Net cash flow from aquisitions 0 4 500 4 500Net investments in tangible fixed assets 170 -1 125 -1 147Net cash flow from investment activities (1 975) 358 (1 345)

Financing activities Increase (decrease) long-term Debt 3 387 -995 -2 586Net deposited equity 4 850 0 0Increase (decrease) short-term Debt 2 170 38 2 448Net cash flow from financing activities 10 407 (958) (138)

Cash and bank deposits at 01.01 6 924 27 467 27 467Net changes of cash and bank deposits -1 122 -17 753 -20 544Cash and bank deposits at 30.09 5 802 9 714 6 924


Notes to Q3 - 09 Interim Financial report


Note 1 - Segment information

Q3 - 2009Integrated

Business segment Software Services Systems Elimination TotalOperating Revenue 8 006 7 473 2 652 (883) 17 248 Other Income 310 - - - 310 Operating Expenses 7 722 6 852 2 335 (883) 16 026 Operating profit before depreciation 594 622 317 - 1 532 Depreciation 587 504 206 (18) 1 279 Operating Result 7 118 111 18 254

YTD - 2009Integrated

Business segment Software Services Systems Elimination TotalOperating Revenue 23 209 26 474 7 530 (2 781) 54 432Other Income 310 - - - 310Operating Expenses 29 846 23 670 7 699 (2 781) 58 434 Operating profit before depreciation (6 327) 2 804 (169) - (3 692) Depreciation 1 767 1 511 589 (141) 3 726 Operating Results (8 094) 1 293 (758) 141 (7 418)

Q3 - 2008Integrated

Business segment Software Services Systems Elimination TotalOperating Revenue 6 611 7 441 2 232 (1 022) 15 261 Other Income - - - - - Operating Expenses 8 773 6 902 1 842 (1 022) 16 495 Operating profit before depreciation (2 162) 539 390 - (1 233) Depreciation 664 374 86 - 1 123 Operating Result (2 826) 165 304 - (2 357)

YTD - 2008Integrated

Business segment Software Services Systems Elimination TotalOperating Revenue 16 479 16 450 3 777 (2 402) 34 304Other Income 365 - - - 365Operating Expenses 27 927 15 645 3 322 (2 402) 44 492Operating profit before depreciation (11 084) 806 455 - (9 823) Depreciation 1 151 1 240 253 - 2 644 Operating Results (12 234) (434) 202 - (12 467)

2008

Integrated Business segment Software Services Systems Elimination TotalOperating Revenue 23 333 25 177 6 334 (4 103) 50 741Other Income 367 - - - 367Operating Expenses 42 956 25 912 6 401 (3 563) 71 707Operating profit before depreciation (19 256) (735) (68) (540) (20 599) Depreciation 1 597 1 793 459 - 3 849 Operating Results (20 853) (2 528) (526) (540) (24 447)

Operating revenue by Geographical Area Q3 - 2009 YTD - 2009 Q3 - 2008 YTD - 2008

Norway 15 647 50 712 14 777 32 982Sweden 1 602 3 720 484 1 322Total 17 248 54 432 15 261 34 304


Notes to Q3 - 09 Interim Financial report

Note 2 - Financial Framework and Accounting Principles

The accounting principles applied are the same as those used for the Group's 2008 Consolidated FinancialStatements.These statements were prepared in accordance with the international accounting standards publishedby the International Accounting Standard Board. The interim accounts have been prepared in accordance with Oslo Axess rules and regulations and IAS 34 - "Interim Financial Reporting". Please refer to attachment, where the accounting policies are described in detail.

Note 3 - Estimates

The preparation of interim accounts involves the use of estimates and assumptions. These estimates impact the amounts stated for assets, obligations, revenues and costs. Actual results may differ from these estimates.

Note 4 - Accounting changes and error correction.

A correction has been made to a previous error in the consolidation of acquired companies. This has resulted ina revision of comparative financial figures in 2008.

Note 5 - Active 24

24SevenOffice has received law suit from Mamut ASAs subsidiary Active 24 with an unspecified claim forcompensation for its cancellation of a cooperation agreement signed in January 2006. 24SevenOffice view is unchanged from previous statements communicated to the stock exchange.

Note 6 - Accountonit Sweden

Accountonit established in Sweden, through a joint venture with the Swedish accounting firm Klara Papper.

Note 7- Stock option program

The Board has initiated a stock option program for key employees. Total cost accrued for the program per 30.09.09 is NOK 136 724

Note 8 - Events after 30.09.2009

There have been no material events subsequent to the end of the interim period that have not been reflected in the Group's third quarter financial statement.

Q3 2009Quarterly Report

Published by: 24SevenO�ce ASAØstensjøveien 340667 Oslo

Investor Relations:Phone: + 47 21548100Fax: + 47 22655860www.24SevenO�ce.com

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