Hitt og þetta 28. apríl 2006

Completed structural transaction and important client deliveries

President's comments In terms of revenues, the first quarter of 2006 is on a level with the corresponding period last year. The inflow of orders was, however, lower, and reflects the fact that Teligent's quarterly bookclosing is impacted to a significant degree by the timing of larger orders in relation to the close of the period. The inflow of orders during the second quarter is expected to be good.

The strong inflow of orders during previous quarters has led to an increase in workload for the development and delivery organisation. In order to meet the increased demand, the delivery organisation has been strengthened. The growth of Teligent and its long-term profitability are driven by sales of new systems, which generate revenues from ongoing support and subsequent upgrades of capacity and functionality. The sale and delivery of new systems, not the least to new customers in new regions, is, however, more demanding, and are initially less profitable. Teligent is now delivering a number of strategic customer systems during the first half-year which will serve as a strong reference base for future sales. One of these projects is the delivery to Deutsche Telekom.

In February 2006, the boards of directors of Teligent AB and Trio AB unanimously recommended to shareholders in Trio to accept an offer from Teligent regarding a merger. Through the merger, Teligent will receive a supplementary offering of products which are highly sought after on the market, and Trio will receive access to a global sales organization and an international customer base. Trio specialises in telephony solutions for corporate users, a highly interesting market segment for a growing number of mobile telecommunications carriers. At the end of the period, Teligent controlled 81.3 per cent of the shares in Trio. On 28 April 2006, at the time of this report, Teligent controlled approximately 88 per cent of the shares in Trio. The merger with Trio is an important milestone in Teligent's continued expansion, as the structural transaction creates a stronger group, both industrially and financially.

Since the beginning of March, I, as the newly appointed CEO & President, have had the opportunity to lead Teligent and to more thoroughly follow the development of company from the inside. I have during this period become even more convinced in the future positive development of the company.

Going forward, the company will have an increased focus on profitability, without lowering its goals for long-term growth. A thorough analysis of the company has been carried out, as regards both internal and external resources, and a number of areas for improvement have been identified. Concrete results of these efforts are expected to emerge during the following quarters. In addition to this, the actual merging of Trio and Teligent obviously has a high position on the agenda.

The first quarter saw a number of highly interesting client deliveries to a variety of growth markets. These included IP based systems, completely in line with the IMS concept which is currently of great interest in the industry.

Furthermore, cooperation with Cisco has been initiated and successful market activities have been carried through, not the least via the 3GSM World Congress in Barcelona. As a whole, these factors, together with the company's well advanced negotiations with a variety of carriers, create a very good foundation for a successful 2006 for Teligent.

Operations The company's strategy, with its focus on global growth regions in combination with the European home market, has during recent years resulted in strong growth, as well as strengthening the company's positions with some of the markets' largest and fastest growing carriers.

Teligent has received supplementary orders for capacity increases, as well as additional functionality from a number of its customers as a result of these customers expanding their services based on Teligent's solutions. During the first quarter of 2006, deliveries were also made to, amongst others, some of the most dominant and rapidly expanding carriers in Africa, Europe, Russia and Southeast Asia. During the quarter, the company increased its staff to meet the increased demand for higher delivery capacity.

The company's product portfolio is based on the Teligent P90/E platform. Further development of the platform as well as service network elements and applications based on the platform continue within a number of strategic areas.

The most important transactions this past year were made within the following areas: - The Teligent P90/E base platform with related development tools such as the central "service network architecture" in the carrier's networks. - Mobile IN and VPN solutions - Payment solutions, including mobile prepaid solutions, Service Delivery Platforms and Content/Charging Gateways. - Messaging systems / voicemail - Service platforms for IP telephony

First quarter 2006 Merger with Trio As at 29 March 2006 Teligent owned 81.3 per cent of the shares in Trio, whereby Trio was consolidated as a subsidiary and included in the balance sheet as of 31 March 2006. The merger did not contribut to the the Group's income or cash flow during the period. As of publication of this report, 28 April 2006, Teligent controlled approximately 88 per cent of the shares in Trio.

Orders received Orders received for the period amounted to SEK 57.9 million (144.6), corresponding to a decrease of 59.9 per cent percent compared with the same period the previous year. At the end of the period, the order backlog amounted to SEK 210.5 million (223.9), of which Trio's share amounted to SEK 32.9 million (-). On-going ASP and support contracts accounted for SEK 136.1 million (107.3), of which Trio's share amounted to SEK 26.9 million (-). Only those ASP and support contracts that are to be delivered within the next 12 months are reported in the order backlog.

Net sales The net sales for the period amounted to SEK 102.1 million (105.0). Of net sales, SEK 25.4 million (27.0) referred to income from ASP and support contracts.

Gross margin and Income The gross margin amounted to 51.7 (59.7) per cent. The margin for the period was affected negatively by a few new systems transactions. The gross margin is expected to return to normal levels going forward.

Operating income for the period amounted to SEK -16.0 million (5.6) and the income after financial items amounted to SEK -17.2 million (4.9). Earnings per share amounted to SEK -1.7 (0.24).

Tax At the beginning of the year, the Group, excluding Trio, reported fiscal deficit of SEK 423.0 million (372.7), of which SEK 403.2 million (353.7) referred to the Parent Company. At the beginning of the year, Trio had a fiscal deficit in the amount of SEK 302.8 million, which transferred to the new Group. Of the fiscal deficit, SEK 48.9 million (35.4) has been settled against deferred tax liabilities referring to temporary differences within the Group. The fiscal value of the remaining loss carry-forward has not been capitalised.

Financing, cash flow and investments The Group's equity as per 31 March 2006 amounted to SEK 486.2 (223.0), of which SEK 31.3 million (-) refers to minority interests. The Group's equity/assets ratio amounted to 60.2 per cent (58.0). Liquid funds, excluding unutilised credit facilities amounted to SEK 34.7 (13.6) as per 31 March 2005. In addition, the Group had unutilised credit facilities amounting to SEK 50.4 million (22.9). Cash flow from operating activities amounted to SEK - 6.4 million (- 9.0).

Investments during the period, excluding the effects of the merger with Trio, amounted to SEK 25.8 million (17.4), of which intangible assets accounted for SEK 22.8 million (15.1) and fixed assets for SEK 3.0 million (2.3). In addition, the merger with Trio created a positive effect in the amount of SEK 19.6 million on the investment item in the cash flow statement.

Personnel Number of employees in the Group increased by 141 individuals during the period to a total of 481 (312), of which 105 are Trio employees. The number of employees in Sweden amounts to 290 (199), of which 62 are Trio employees.

Accounting principles This interim report has been prepared in accordance with IAS 34. The applied accounting principles are unchanged as compared with the most recently published annual report.

Forecast for 2006 The company sees a continuation of favourable market conditions during the year and an increase in demand for the solutions delivered by the Teligent P90/E platform. Based on this, the company is expecting positive development during 2006, but is declining to issue a forecast for the full-year 2006.

Other information

New CEO and President During the period, Tomas Duffy was recruited and began serving as CEO and President of Teligent AB. The acting President, Pekka Peltola, who is also a Board member and one of the founders of Teligent, returned to his operational role within the company's sales organisation.

Annual General Meeting The Annual General Meeting of Teligent AB, Corporate Identity Number 556398-7154, will be held on 28 April 2006, at 10.30 AM, at the Clarion Hotel Stockholm. The following individuals have been proposed to constitute the new Board: Lars-Erik Nilsson (Chairman), Anders Björkman, Sverker Hannervall, Olle Isberg, Bengt Jörgensen and Henrik Krefting.

Forthcoming reports Interim Report Jan - Jun 2006, 21 July 2006 Interim Report Jan - Sep 2006, 25 Oct 2006

Nynäshamn, 28 April 2006 Tomas Duffy Chief Executive Officer and President