REPORT FOR 3rd QUARTER 2013

Restructuring and debt conversion

The company's extensive effort to restructure the 
company now finally is to yield the expected results. 
The reduced cost base, measures to reduce geographic 
exposure and more focused operations have gradually 
shown results. In combination with an extensive 
conversion of interest-bearing bond debt, the company 
has established a new foundation for long-term, 
profitable growth.

The company reported revenues of NOK 103 million for 
the 3rd quarter, compared with NOK 87 million for the 
same quarter in 2012. EBITDA for the quarter was NOK 
26 million, compared with NOK 8 million for the 
corresponding quarter in 2012. This corresponds to an 
EBITDA margin of 25.3 per cent, compared with 9.8 per 
cent for the 3rd quarter of 2012. The operating loss 
for the quarter was NOK 23 million, compared with an 
operating loss of NOK 2 million for the same period 
in 2012. The pre-tax loss was NOK 25 million, 
compared with a pre-tax loss of NOK 8 million for the 
corresponding quarter in 2012. Revenue from the sale 
of intellectual property rights totalled NOK 20 
million during the period. The accounts include 
charges of NOK 40 million for the write-down of 
databases.

Blom has reduced its operations over several years 
through the sale and downscaling of several 
subsidiaries. The company will continue to make an 
active effort to adapt its structure, cost base and 
product portfolio in order to improve the company's 
earning capacity.

The company has had an ongoing dialogue with a 
majority of the bondholders for the company's bond 
loan. The bondholders approved the restructuring of 
debt through conversion of all the outstanding bond 
debt to equity in the company at the bondholder 
meeting of 5 September 2013.

Conversion of all of the company's outstanding bond 
debt totalling NOK 97.3 million was approved by the 
company's Extraordinary General Meeting of 27 
September. Registration of the new shares will take 
place on 20 November 2013. After conversion of the 
bond debt, the bondholders will own approximately 
96.7 per cent of the company's outstanding shares.

The enclosed pro forma balance sheet shows the 
company's balance sheet as at 30 September 2013 if 
the resolution adopted prior to 30 September 2013 had 
been implemented. Implementation of the resolution 
was contingent on a notice to creditors linked to the 
resolution made to reduce the capital, a resolution 
that was made as a consequence of the debt conversion 
proposal. The balance sheet shows a book equity of 
NOK 77.9 million, which corresponds to an equity 
ratio of 37.1 per cent.

The debt of NOK 20 million to Hexagon AB has been 
settled through the sale of intellectual property 
rights to Hexagon AB. Blom emerges after this with 
interest-bearing debt of NOK 10 million.

For further information please contact the CEO, Dirk 
Blaauw, on tel. +47 22 13 19 20.