Vertical Group ASA has had a very eventful year in 2008.
We decided to stop our planned IPO towards Oslo Access in January, due to the current market conditions and our future market predictions.
In retrospect, we believe it was the right decision.
We managed to complete the 100% purchase of the Norwegian software company T4M, which was a key piece in our overall strategy.
In April, we also raised additional capital to remove all debts occurring from the previous IPO process.
We have now a complete Due Diligence legal and financial trail, provided by Selmer and PwC for all entities of Vertical Group ASA.
We also adopted all historic accounts for the group towards IFRS and set up processes in order to enable us to continue under the same standard with monthly reporting.

Vertical Group ASA has a signed mandate letter with UK broker HB Corporate for a potential AIM listing. This means that
we can fast track for IPO, when the timing is right. We have done appropriate management and employee
replacements throughout our entities during 2008. The ambition of Vertical Group was, for the year 2008, to have integrated all the companies with cost efficient internal processes, drive synergies, have motivated staff, satisfied customers, 100 % cost control and positive cash flow on monthly basis. We are happy to say that we now have achieved all these goals.

The second half of this Year will be profitable within the entire Vertical Group, with Q4 confirming the increasing performance trend.
Please find below a graph showing the development of the Group throughout 2008.

Quarterly Results Vertical Group 2008