Annual Report 2007

Annual Report 2007

Annual General Meeting (AGM)

The AGM of Getupdated Internet Marketing AB (publ) will be held at 2 p.m. on Tuesday, 6 May 2008 at the companies premises at Brahe- gatan 10, Stockholm, Sweden.

Notification

Shareholders intending to participate in the AGM should firstly be in- cluded on the print-out or other summary of the complete share reg- ister as of Tuesday, 29 April 2008, and secondly, notify the company of their intention to participate at the AGM by no later than 4 p.m.

on Friday, 2 May 2008. The notification should be to Eric Forsner by mail to Getupdated Internet Marketing AB, Brahegatan 10, 114 37 Stockholm, Sweden or via e-mail to bolagsstamma@getupdated.

com. Notifications should state name, personal/corporate identity number, shareholding, address, daytime telephone number and in- formation on potential assistants, and where applicable, information on deputies.

Representatives

Shareholders intending to participate through representatives should issue signed and dated powers of attorney for such deputies.

If the power of attorney is issued by legal entity, a certified copy of the certificate of incorporation or equivalent documentation for the legal entity should be attached. Powers of attorney and certificates of incorporation may not be more than one year old. Original pow- ers of attorney and potential certificates of incorporation should be forwarded by mail to Eric Forsner at the aforementioned address in good time before the Meeting.

Nominee-registered Shares

In order to exercise their voting rights at the AGM, shareholders with nominee-registered holdings must temporarily re-register their shares in their own name with VPC AB (the Swedish Central Securi- ties Depository & Clearing Organization). Shareholders must inform their nominees thereof in good time before 29 April 2008, when such re-registration process should be complete.

Financial Reporting Schedule, 2008

Interim Report, January-March 2008 6 May 2008 Interim Report, January-June 2008 26 August 2008 Interim Report, January-September 2008 12 November 2008 This document is essentially a translation of the Swedish language origi- nal. In the event of any discrepancies between this translation and the original, the latter will be deemed correct.

Production: Getupdated/hkdesign • Photo: Janne Danielsson Print: Alfa Print

Translation: Turner & Turner, www.turner.se

Contents 1

Annual Report—Summary 2

CEO’s Statement 6

Business Concept, Goals and Strategy 8

History 9

Market 10

Acquisitions in 2007 14

Operations 16

Skills and Values 24

Share Capital and Ownership Structure 26

Directors' Report 30

Risk Factors 34

Summary—Financial Performance 38

Definitions of Key Ratios 39

Comments on Financial Performance 40

Consolidated Income Statement 42

Consolidated Balance Sheet 43

Consolidated Cash Flow Statement 45 Consolidated Statement of Changes in

Shareholders' Equity 46

Parent Company Income Statement 47

Parent Company Balance Sheet 48

Parent company Cash Flow Statement 50 Parent Company Statement of Changes in

Shareholders' Equity 51

Notes 52

Audit Report 71

Corporate Governance 72

The Board 76

Senior Executives and Auditors 77

Contents

2 Annual Report—Summary

Business Concept

Getupdated Internet Marketing assists corporations and other or- ganizations to operate and market themselves on the Internet to exploit the Internet's opportunities optimally to enhance profit- ability, efficiency and the resulting recognition.

Vision

Getupdated's vision is to be Europe's leading complete Internet marketing provider, with strong positioning in the US.

Operational Goals

• To be perceived by customers as an innovative and leading In- ternet marketing provider and be recognized for delivering in- novative solutions.

• To offer expert consulting services. Customers should perceive that the company contributes to creating customer benefit.

• To be perceived as an attractive employer—through the com- pany's professionalism, innovation and quality, working at Get- updated should be considered creditable.

Financial goals

• Getupdated will be a favorable long-term investment by com- bining high growth and good profitability.

• Getupdated will be ready for an IPO on OMX Nordic Ex- change within one year.

• For 2008, Getupdated expects sales of over SEK 400 m with an improved operating margin.

Operations

Getupdated is a high-growth total provider on the Internet marketing and online communication market. The company markets and supplies an extensive selection of Internet marketing products and services. The majority of the company's revenues are generated within Internet Marketing, which is also the seg- ment where the company anticipates the highest growth in the future. The Internet is now starting to secure the status of the predominant marketing and communication medium that many commentators anticipated a few years ago.

The company's operations are conducted through three busi- ness areas: Internet Media, Internet Solutions and Webhosting.

The Internet Media business area helps clients secure exposure on the Internet through search engine optimization (SEO), acquir- ing banners on various websites and media planning for Internet marketing campaigns. The goal of SEO is for the client's web or campaign site to feature in the top ten hits of independent search results on search engine homepages. By sponsoring keywords, In-

Annual Report—Summary

ternet Media helps customers pay for visibility when a user enters a designated keyword into any of the major search engines. Internet Media uses media planning to help corporations gain an overview of their Internet marketing and visibility, while the company as- sists them in executing their strategies. The Internet Media busi- ness area generates some 56% of the company's revenues.

The Internet Solutions business area offers products and serv- ices that meet customer needs to secure a presence and conduct marketing on the Internet. Internet Solutions helps clients meet their marketing needs by analyzing traffic on their websites, for- mulating strategies to realize marketing goals, building and en- hancing e-commerce solutions, portals, websites and intranets, and creating campaigns and communities on the Internet. The Internet solutions business area represents some 23% of Getup- dated's revenues.

The Webhosting business area provides web hotels and domain name registration for customers. These operations are conducted under the Crystone brand, currently one of Sweden's largest web hosts. Webhosting is the umbrella for all hosting services like web hotels, dedicated servers, colocation and domain name registra- tion. The Webhosting business area's revenues represent some 21%

of the company's total revenues.

In the year, Getupdated enhanced its offering by acquiring spe- cialist enterprises in a number of segments, and is now able to offer a fully comprehensive services portfolio across all segments the company needs to market itself and operate on the Internet.

A total of 13 acquisitions were consummated in 2007, the largest of which was completed in November 2007, when it acquired the UK entity Just Search.

Through these acquisitions, Getupdated is now one of the leaders in the organic search marketing segment. The company now has some 340 employees and operations in Sweden, the UK, France, Norway and the US.

Market

Getupdated is primarily active in two markets: Internet Mar- keting and Webhosting. The following summarizes the rapidly expanding market for Internet marketing.

Internet marketing is one of the world's fastest-growing mar- kets. The segment spans a broad palette of services and products—

from search marketing, banner advertising, mobile marketing, traffic analysis and e-commerce solutions to building websites and communities.

In Sweden, the market for Internet marketing expanded by over

50% in 2007, and was thus the third-largest marketing medium

(some SEK 4,100 m) after daily press (some SEK 9,100 m) and

Annual Report—Summary 3

0 5 10 15 20 25

2005 2006 2007 2008e 2009e 2010e 2011e European Internet Marketing Growth

2005-2010e (USD bn)

Internet and TV Advertising as a Percentage of Total Swedish Advertising Market 2003-2008e

0 2 4 6 8 10 12 14 16

Internet TV

2003 2004 2005 2006 2007 2008e

Souce: IRM

Source: eMarketer

Shareholder

No. of Shares

Equity &

Vote Hol- ding, %

Mattias Kaneteg 4,239,361 21.0

Anders Varveus privately and

via companies 3,146,145 15.6

Åke Eriksson privately and via

companies 3,093,729 15.3

Angelizer Holding AB 683,736 3.4

Justin Yates 566,380 2.8

Paul Yates 566,379 2.8

Johan Kadar via companies 538,711 2.7 Danske Bank International S.A. 522,751 2.6

Dennis Haga 372,812 1.8

Nordnet Pensionsförsäkring AB 343,786 1.7 JRBM Fastighets & Invest AB 335,943 1.7

Fredrik Forssberg 329,975 1.6

PMG Media Group AB 263,138 1.3

Jimmie Pettersson 242,535 1.2

Caceis Bank Luxembourg, Cais

Bank, W8IMY 223,800 1.1

Other 4,699,175 23.3

Total 20,168,356 100.0

Shareholders as of 14 March 2008

TV (some SEK 4,700 m). The Swedish market is forecast to grow by some 20% in 2008 and would then be worth some SEK 4,900 m, according to IRM. This would mean the Internet overtaking TV in 2008, becoming the second-largest marketing medium after daily press. Please refer to the diagram on the next page.

The markets representing the majority of Internet marketing in Europe are the UK, Germany and France. These markets are sub- ject to consolidation among providers seeking to offer a broader range of services. In 2006, the UK represented 36% of Europe's total market for Internet marketing, with Sweden representing 5%. But in terms of its population, Sweden is at an advanced level compared to other European countries.

The US market for Internet marketing was worth USD 18.8 bn in 2007, equivalent to some 7% of total advertising spend. This was an increase from USD 16 bn in 2006. In 2011, the European market for Internet marketing is forecast to pass USD 20 bn. In Sweden, the Internet marketing share of total advertising spend in 2007 was some 12%.

Board of Directors and Senior Executives

Getupdated's Board of Directors has five members: Kjell Ormeg- ard (Chairman) Åke Eriksson, Johan Kadar, Johan Lenander and Paul Yates.

The senior executives of Getupdated are Johan Kadar, Chief Executive Officer, Mattias Kaneteg, Chief Operating Officer and Eric Forsner, Chief Financial Officer.

The Share and Marketplace

Getupdated's stock has been trading on First North, an alternative

marketplace affiliated to OMX Nordic Exchange, since 11 July

2007. The companies traded on First North are not liable to ob-

serve the same rules as listed companies. Instead, First North is

regulated by a less extensive framework mainly tailored to small-

cap and growth companies. All companies trading on First North

have a certified adviser, whose task is to ensure that the company

satisfies First North's regulations for communicating with the

market and investors. Certified advisers conduct initial reviews of

those companies whose shares are intended for trading on First

North, and OMX Nordic Exchange Stockholm AB then considers

applications to start trading.

4 Annual Report—Summary Financial Summary

SEK 000 1 Jan. 2007–

31 Dec. 2007 1 Jan. 2006–

31 Dec. 2006 1 Jan. 2005–

31 Dec. 2005

Net sales 214,024 68,097 33,018

EBITDA 28,830 –508 5,115

Operating profit/loss 25,080 –1,232 4,682

Profit after tax 15,825 –1,511 3,190

Total assetss 471,535 94,568 31,336

Shareholders’ equity 262,363 35,745 4,796

Interest-bearing net debt 82,551 20,812 8,795

Capital employed 358,255 57,959 14,735

Cash flow from operating activities –1,289 6,503 8,649

Cash flow from investing activities –99,105 –31,857 –16,260

Cash flow from financing activities 112,063 25,794 7,503

Sales growth 214% 106% 169%

EBITDA margin 13.5% neg. 15.5%

Operating margin 11.7% neg. 14.2%

Net margin 7.4% neg. 9.7%

Equity ratio 56% 38% 15%

Debt/equity ratio 0.36 0.61 1.98

Return on equity 10.2% neg. 62.2%

Return on capital employed 12.2% neg. 31.9%

Return on total capital 9.0% neg. 15.0%

Average no. of employees 184 83 37

No. of employees at year-end 303 108 54

Per Share Data, SEK 1 Jan. 2007–

31 Dec. 2007 1 Jan. 2006–

31 Dec. 2006 1 Jan. 2005–

31 Dec. 2005

Earnings per share 1.01 –0.34 2.82

Shareholders’ equity per share 13.01 3.28 4.53

Dividend per share 0 0 0

Year-end closing price 16.80 11.00 n/a

Market cap. at year-end, SEK m 338.8 120.0 n/a

P/E ratio, x 16.6 neg. n/a

Average no. of shares¹ 15,055,274 4,456,431 1,058,899

Free float¹ 20,168,356 10,908,731 1,058,899

¹Adjusted for reverse split 1:100 in July 2007

Annual Report—Summary 5

6 CEO’s Statement

We are now a leader in the Internet marketing segment in Sweden, and actually have world-leading positioning in the organic search marketing segment—where we help our customers secure top hits in search engine results.

Internet marketing is one of the world’s highest-growth markets.

Independent research indicates yearly growth of 20-50%, depend- ing on market segment and country. Internet marketing sales are expected to overtake TV spend as early as the current year. The seg- ment covers a broad palette of services and products—from search marketing, banner advertising, mobile marketing, traffic analysis, e-commerce solutions, to producing websites and communities.

There are a number of competitors in the various Internet marketing segments. What makes Getupdated unique, though, is that we cover the complete range. After our corporate acquisi- tions last year, we are now able to offer our customers complete solutions covering all their needs in the segment, and we think this will give us a competitive edge ahead. We offer our customers needs analysis, website design, optimization of e-commerce sites, design of marketing campaigns and measuring their performance.

We also ensure that our customers get top results in various search engines.

Ultimately, our assignments are about raising customers’ pro- ductivity. A public authority able to replace call centre services and physical form mailing with a user-friendly website, where cus- tomers print forms themselves, can make big savings. Similarly, a business that succeeds in increasing the number of tender requests from its website by 25% will quickly become a satisfied Getup- dated customer.

The strategy of being able to offer a range of complete solutions makes us unique, and creates big opportunities for cross sales. In my daily contacts with customers, I also note how they appreci- ate having Getupdated as a complete provider, instead of being forced to source services from multiple—and un-coordinated—

suppliers.

The strategy also brings us increased stability and risk diversi- fication, particularly in future, when competition in the segment

CEO's Statement is likely to increase. If we view last year as a breakthrough for our fundamental business concept, during the current year, I think we will demonstrate its considerable financial attractions. A signifi- cant share of our income is repeat revenues, from 12-24-month contracts. So far, over 90% of our customers have renewed their contracts—corroboration that we’ve succeeded in making our customers very satisfied. This will exert a positive impact on our profitability ahead.

The foundation of today’s Getupdated was laid back in 1999, and many of our group companies have a number of successful financial years behind them. Getupdated now has an employee headcount of some 340, and last year, we started our focus on the international market. Apart from Sweden, we can now offer local expertise on the UK, French and US markets.

We have focused especially heavily on the UK. The acquisi- tion of Just Search gives us a secure platform to grow on the UK market. The UK is Europe’s biggest market for Internet market- ing, with a share of some 36%, compared to some 5% in Sweden.

Obviously, strong positioning on the English-speaking market is a prerequisite for continued successful international growth. As early as this year, we expect a significant profit contribution from our UK business, in addition to the effects we saw in 2007. We will also maintain our focus on the US market, and will start this year as main sponsor of the keynote Search Engine Strategies event in New York. We will be assigning substantial resources to hiring professionals and sales in the US.

Our Webhosting business Crystone focused sharply on the consolidation and integration of previous acquisitions in 2007, to increase profitability in this segment. By closing five of seven data- centers and concentrating operations on Malmö and Stockholm, rationalizing our support and admin resources and downsizing headcount from 52 to 30, we are now in a position to exploit economies of scale and become profitable as early as the current year. Crystone now has some 70,000 customers, all on running contracts, with a 95%-plus renewal rate. We are also winning over 1,000 new customers monthly, through Crystone’s website alone.

I anticipate a really exciting year ahead. My main task is to en- sure the successful integration of our acquisitions. I want everyone that works at Getupdated to feel a sense of unity, and that we’re working together towards our vision of becoming one of the lead- ing Internet marketing providers in Europe, with strong position- ing in the US.

Johan Kadar

Chief Executive Officer

Stockholm, Sweden, April 2008 The year 2007 was something of a breakthrough

for Getupdated Internet Marketing. We com-

pleted 13 strategic corporate acquisitions, and

our sales grew by over 200%. Half of this total

was organic growth, which demonstrates that

our customers believe in us, and that we have a

successful business concept.

CEO’s Statement 7

8 Business Concept, Goals and Strategy

Business Concept

Getupdated Internet Marketing assists corporations and other or- ganizations to operate and market themselves on the Internet to exploit the Internet's opportunities optimally to enhance profit- ability, efficiency and the resulting recognition.

Vision

Getupdated's vision is to be Europe's leading complete Internet marketing provider, with strong positioning in the US.

Operational Goals

• To be perceived by customers as an innovative and leading Internet marketing provider and be recognized for delivering creative solutions.

• To offer expert consulting services. Customers should perceive that the company contributes to creating customer benefit.

• To be perceived as an attractive employer—through the com- pany's professionalism, innovation and quality, working at Get- updated should be considered creditable.

Financial goals

• Getupdated will be a favorable long-term investment by com- bining high growth and good profitability.

• Getupdated will be ready for an IPO on OMX Nordic Ex- change within one year.

• For 2008, Getupdated expects sales of over SEK 400 m with an improved operating margin.

Business Concept, Goals and Strategy

Strategy

• Complete solution—Getupdated will offer its customers the market’s broadest product and services offering without com- promising innovation and quality.

• Cross sales—by offering the market’s broadest product range, Getupdated will create the prospects for cross sales and in- creased profitability.

• Innovation—Getupdated will be at the leading edge with a range of products and services that can be rapidly tailored to changes on the market to meet customer needs.

• International platform—with a presence on several markets, the company will be able to attract multinational customers.

Because language is the only barrier on the Internet, a presence in the major language groups is a prerequisite for profitable in- ternational growth.

• High acquisition-led growth—Getupdated will grow organical- ly and via acquisitions. The company will enter new geographi- cal markets mainly by acquiring enterprises active in search optimization, to then create extra sales through the company’s other products.

• Success through volume—Getupdated will utilize its active ac- quisition strategy to grow and create volume barriers to com- petitors, mainly in the search optimization segment, where those companies with the greatest delivery resources achieve the most success for their customers.

• The best workplace—in a knowledge business like Getupdated,

staff skills and loyalty are prerequisites for sustainable profitabil-

ity. The company will offer a working environment that brings

development opportunities, remuneration on market terms

and the possibility of share price-related incentive schemes.

History 9

1985 Getupdated registered.

1998 Quotation on the former SBI list, now NGM.

1999 Eastpoint incorporated

2001 Launch of Informant, Getupdated’s web monitoring system.

2002 Getupdated’s main shareholder Parkerhouse BV sells some 25% of the company to Åke Eriksson, Lennart Andersson and Vencom.

2004/2005 Eastpoint acquires majority shareholding in Crystone and the assets and liabilities of Invit-Net.

2005 Eastpoint acquires DK Network and Azalea WebDesign.

2006 Crystone acquires Scandic Hosting Group with wholly owned Norwegian subsidiary Scandic Hosting Group AS (corporate name changed to Crystone Norge AS).

2006 Crystone acquires Enterweb AS.

2006 Getupdated acquires Eastpoint through a reverse acquisition. Getupdated is 90% owned by Eastpoint’s shareholders, and has its corporate name changed to Eastpoint.

2006 Acquisition of Addmind IT-Solutions.

2006 Divestments of the media monitoring business and Getupdated.com.

2007, January Acquisition of Affiliator.

2007, February Acquisition of Många Idéer Gruppen - MIG.

2007, February Acquisition of Neno.

2007, February Acquisition of MediaAnalys Trisodium (51%).

2007, March Acquisition of Ryce Holding/Media Operator Sweden.

2007, May Acquisition of Optiwords.

2007, July Change of marketplace from NGM Equity to OMX First North.

2007, July Acquisition of Cross Communication Holding.

2007, July Acquisition of eTrafficJams.com, Inc.

2007, August Change of corporate name to Getupdated.

2007, September Acquisition of SolarPlexus.

2007, October Acquisition of Trive.

2007, November Acquisition of Just Search Ltd.

History

10 Market

Internet Usage

In the last decade, the Internet has become an obvious me- dium for accessing information, communicating and shopping.

Internet usage and the number of websites has expanded briskly in this period. Estimates by SCB (Statistic Sweden) from spring 2007 indicate that some 75% of all Swedish citizens aged 16-74 use the Internet at least once a week. A significant share of usage is for information searches (some 70%) and communication (some 69%).

Among young people and young adults in Sweden, 97% now regularly use the Internet, according to Sweden’s biggest PC maga- zine PC för Alla. This level is high in international terms, with the corresponding share in Germany and the UK being 92% and 83% respectively. Swedish broadband penetration is also high, and now some 65% of Swedish citizens have broadband at home, an increase of 20% in just two years.

The need for businesses to be visible on the Internet and the search engines that are widely used to access information is rising with the expansion of Internet usage and the number of websites.

Google reports that over 2 million searches are made per second on this search engine alone, and some 70% of these searches are based on a desire to purchase. Accordingly, it is completely obvious that businesses want to encounter their customers on the Internet, and market themselves actively where their customers are.

The growth of Internet usage has also created a significant mar- ket for Internet-related services and products. As customers and suppliers progressively globalize, having a website that is attractive to customers and other observers, is flexible to changes and runs the company’s business cost-efficiently is increasingly significant.

Internet Marketing

The Internet has evolved into a powerful and vital instrument for advertisers to reach consumers. Investments in Internet marketing have grown significantly in recent years, amounting to some SEK 4,100 m in Sweden alone in 2007, according to IRM. Independent market researchers estimate that Internet advertising will remain in significant growth. Getupdated thinks that increased Internet- based marketing is due to factors including more widespread usage

Market

Getupdated is active on four markets: search marketing, affiliate marketing, Internet consulting and Webhosting. The markets reviewed in this section are search marketing, affiliate marketing and Webhosting in those countries where Getupdated has its highest sales and growth: Sweden, the UK and US.

of the Internet among consumers, cheaper and faster broadband connections, growing Internet sales via the Internet and the benefits of Internet marketing against traditional media. These benefits in- cluding greater ease in measuring consumer responses to marketing, and new ways to target marketing to various societal groups, such as tailoring campaigns and mailshotting with greater precision.

The market for Internet marketing can be divided into three segments: banner advertising, search marketing and affiliate mar- keting.

• Banner advertising is that portion of Internet marketing that is most reminiscent of traditional advertising, as it involves the placement of an advertising banner on a web page, with the advertiser paying for the banner being displayed for a certain period.

• Search marketing is the highest-growth segment, largely thanks to its control and monitoring capabilities. Search marketing can then be divided into two: sponsored links, which are purchased positions next to organic hit lists, where companies pay for each click generated to the website, and search optimization, which involves the optimization of a website to secure higher position- ing in organic hit lists.

• Affiliate marketing can be considered as an enhanced form of banner advertising, where a company associates with a network of publishers, who agree to remuneration via adverts on their websites against performance-related payment. This perform- ance-related payment can be based on the number of clicks, purchases, or customer or user registrations on a website as a result of clicking on the banner, for example.

The majority of the market for search marketing relates to spon- sored links and affiliate marketing.

The Swedish market for Internet marketing grew by over 50%

in 2007, and thus (at SEK 4,100 m) was the third largest medium

with a market share of 12% after the daily press (some SEK 9,100

m) and TV (some SEK 4,700 m) according to IRM’s figures. The

Swedish market for Internet marketing is forecast to grow by some

20% in 2008, to a value of some SEK 4,900 m, again according

Market 11

0 2 4 6 8 10 12 14 16

Internet TV

2003 2004 2005 2006 2007 2008e

to IRM. This would mean that in 2008, the Internet will become the second- largest marketing medium after the daily press (see the diagram to the right and on the next page).

eMarketer estimates the US market for Internet marketing at USD 18.8 bn in 2007, or some 7% of total advertising spend. This is up from USD 16 bn in 2006.

eMarketer forecasts Internet marketing spend expanding by 21% yearly in Europe, and by an average of 18% in the US by 2011. In the US, search marking specifically is forecast to grow by 50% yearly until 2011, all according to eMarketer.

Geographical Progress

In Europe, the markets representing the majority of the Internet market are the UK, Germany and France. In these markets, suppliers are consolidating so they can offer a broader range of services. In 2006, the UK represented 36% of the total European market for Internet marketing, while Sweden was 3% (see diagram to right). However, in terms of population levels, Sweden is at a high level compared to other European countries.

Search Marketing

Search marketing means methods to enhance website positioning on the major search engines like Google and Yahoo. In 2006, the market for search advertising was some 41% of the total market for Internet marketing in Swe- den, the US and UK, according to eMarketer. In 2007, the search advertising share of the total Internet marketing spend in these countries is estimated at some 43%.

The market for search marketing is expanding robustly worldwide. On the Swedish market, investments increased by 288% from SEK 157 m to SEK 611 m between 2005 and 2006 according to IRM. Investments in search market- ing expanded to over SEK 1 bn in 2007. In 2008, sales are forecast to increase to some SEK 2 bn.

Search marketing can be divided into two sub-segments: sponsored links and SEO.

Sponsored Links

Sponsored links are purchased positions adjacent to organic hit lists where companies pay for each hit generated to their website. Google—the world’s most highly evolved search engine that has driven market progress in spon- sored links for some time—dominates the market for sponsored links. Most of the scale of the market for search marketing relates to the market for sponsored links, which accordingly, means Google controls a large portion of the market for search marketing.

Search Engine Optimization (SEO)

SEO is the search marketing segment targeting businesses that want to optimize their websites to secure the highest possible results in search engine organic hit lists. SEO is an intensely competitive market with no single player dominant, unlike the market for sponsored links.

Getupdated is one of the world leaders in SEO in terms of employee head- count and customer base. Competitors on the Nordic market include Nota- bene.net of Denmark.

Italy 5%

Netherlands 6%

France 13%

Germany 20%

UK 36%

Spain 4%

Sweden 3%

Other* 13%

* Denmark, Belgium, Austria, Finland, Greece, Slovenia, Croatia, Norway, Ireland, Portugal and Switzerland.

0 5 10 15 20 25

2005 2006 2007 2008e 2009e 2010e 2011e Internet Marketing in Europe 2005-2010e (USD bn)

Source: EIAA, eMarketer, IRM.

Source: eMarketer

European Internet Marketing, 2006

Internet and TV Advertising Percentage of Total Swedish Advertising Spend 2003-2008e

Source: IRM

12 Market

Affiliate Marketing

Historically, the market for affiliate marketing has expanded briskly, with the increase in banner and advertiser numbers on the Internet. Affiliate marketing is a cost-efficient way of proliferating banners on a high number of websites for the mass of Internet users. However, the market growth of affiliate marketing has reduced in recent years in favor of search marketing. Affiliate marketing is based on a company associating with multiple publishers who undertake to display banners for advertisers against performance-related payment. This means that there are economies of scale for companies with large publisher networks.

The market for affiliate marketing is intensely competitive. International players in the segment include TradeDoubler, Affilinet, Cibleclick, Deal Group Media, ValueClick and Zanex. Affiliate marketing companies also encounter competition from the major search engines like Google, MSN and Yahoo, who reach advertisers via direct sales.

Webhosting

Webhosting spans services like Webhosting and domain name registration.

Getupdated regards the Webhosting market as fairly mature and stable.

The barriers to starting a web host are low, which means there is a wide range of players on the Swedish market. The Webhosting market in Sweden is currently restructuring. Large players are choosing to grow by acquiring smaller counterparts. Thus progress is towards a more consolidated market, and forecasts indicate the market been dominated by a smaller number of large players.

One phenomenon indicating an increased need for Webhosting in the fu- ture is the dramatic expansion of the number of registered domains over the last decade. Between 1997 and 2007, the increase averaged 31% according to II-stiftelsen, the body responsible for the .se top domain. The expansion gath- ered real pace in 1993, when registration of .se domains was deregulated. Pre- viously, this necessitated a corporate name or trademark registered in Sweden.

This progress is also expected to promote positive volume growth in domain name registration.

2006 is the first year that more consumers than companies registered .se domains. There is a clear trend towards increasing numbers of consumers choosing to secure an Internet identity through personal domain names for e-mail addresses, websites or blogs. Accordingly, II-stiftelsen forecasts domain names growing at at least the same rate in 2007.

0 10 20 30 40 50 60 70 80 90

Mamu t

Cr ys to ne On e.com

Su rft ow n

Cliché BallouFS Dat a Al eb or g

Space2U Ci ty Ne tw or k

Le vo nl in e Sp ra y

Interne t.se Telia Source: Internetworld

Sweden’s 14 largest Web hosts, No. of Registered Domains, 000

Internet 15%

Daily press 8%

TV 14%

Other 43%

Internet Marketing is Forecast to Win an Increasing Share of Swedish Advertising Spend in 2008

Source: IRM

14 Acquisitions in 2007

Acquisitions in 2007

Getupdated acquired 13 companies with specialist skills in 2007. These acquisitions mean Getupdated supplemented its offering and is now able to deliver a fully comprehensive services offering in all seg- ments that companies need to market themselves and operate on the Internet. The acquisitions are reviewed below.

Completed Acquisitions

Company Acquired

Holding Acquisition

Month Business Area

Affiliator 100% January Internet Media

Aktiebolaget Många Idéer Gruppen - MIG 100% February Internet Media

Neno 100% February Webhosting

MediaAnalys Trisodium AB 51% February Internet Media

Ryce Holding AB (with subsidiaries Media Operator Sweden AB and Ryce Directory Intelligence AB) 100% March Internet Media

Optiwords AB 100% May Internet Media

Euronet Online (assets and liabilities) 100% June Webhosting

Cross Communication Holding AB 100% July Internet Solutions

eTrafficJams.com, Inc. 100% July Internet Media

SolarPlexus Management Europe AB 100% September Internet Solutions

Trive AB 100% October Internet Solutions

Just Search Ltd 100% November Internet Media

Purchase Price and Supplementary Purchase Price

Company

Fixed Purchase

Price, SEK m Paid In

Supplementary Purchase Price

Aktiebolaget Många Idéer Gruppen - MIG 15.0 Shares and cash No

Neno 2.0 Shares No

MediaAnalys Trisodium AB 12.5 Shares Performance-related

Affiliator AB 10.5 Shares and warrants Paid

Ryce Holding AB (with subsidiaries Media Operator Sweden AB and Ryce

Directory Intelligence AB) 32.0 Shares Performance-related

Optiwords AB 4.5 Shares Paid

Euronet Online (assets and liabilities) 5.0 Shares and cash No

eTrafficJams.com, Inc. 7.8 Cash Performance-related

Cross Communication Holding AB 25.3 Shares and cash Performance-related

SolarPlexus Management Europe AB 6.9 Shares Performance-related

Trive AB 15.5 Shares Paid

Just Search Ltd* 115.0 Shares and cash Performance-related

* Due to Just Search being the biggest single acquisition Getupdated has completed, the supplementary purchase price for Just Search is reported separately below:

The supplementary purchase price is performance-related and based on Just Search’s profit after tax. If profit after tax in 2008 is less than GBP 1,500,000, no supplementary purchase

price is payable. However, the company will pay GBP 306,748 if profit after tax is GBP 1,500,000, or GBP 1,763,804 if profit amounts to GBP 2,000,000 or GBP 3,179,325 if profit after tax

amounts to GBP 2,500,000. For every GBP 50,000 exceeding profit after tax of GBP 2,500,000, GBP 49,847 would be payable. For the financial year 2009, the supplementary purchase

price related to Just Search could be a maximum of just under GBP 900,000. The settlements for supplementary purchase price will be paid in spring 2009 and 2010 respectively.

Acquisitions in 2007 15

The Effect of Acquisitions on Consolidated Sales and Net Profit

The following table illustrates the effect of acquisitions on Getupdated’s consolidated net sales and net profit if the acquisitions had been completed on 1 January 2007. This is not pro forma reporting, and is based on figures reported in note 29 on page 67.

Company Net Sales, SEK 000 Net Profit, SEK 000

Getupdated group 2007 214,024 15,825

Aktiebolaget Många Idéer Gruppen - MIG 640 –126

MediaAnalys Trisodium AB – –

Affiliator AB 95 7

Ryce Holding AB (with subsidiaries Media Operator Sweden AB and Ryce Directory Intelligence AB) 6,258 –1,658

Optiwords AB – –

eTrafficJams.com, Inc. 83 –96

Cross Communication Holding AB 13,500 1,633

SolarPlexus Management Europe AB 4,846 370

Trive AB 12,724 332

Just Search Ltd 26,006 4,345

Total 278,176 20,633

16 Operations

Operations

Getupdated supplemented its offering by acquiring specialist companies in a number of segments in the year, and can now deliver a comprehensive services offering in all segments that companies need to market themselves and maintain a presence on the Internet. Some of the specific services Getupdated offers are Internet advertising, search marketing, search engine optimization, performance-related marketing (affiliate marketing), campaign sites, traffic analysis, Internet strategies, web and portal development, web design, e-commerce, communities and Webhosting.

Nearly 80% of the traffic to websites is from search engines, and according- ly, Getupdated has focused on helping its customers secure a top ten position in independent search results on the various search engine websites—called search engine optimization, SEO.

Getupdated assists a wide range of customers, from multinational corpora- tions to smaller local enterprises, with a range of services for marketing them- selves and maintaining a presence on the Internet.

The group has some 340 employees that work at its head office in Stock- holm, and in the US, France, the UK, Sweden and Norway.

Getupdated achieved robust growth in 2007, with sales gains exceeding 200%, half of which from organic growth and half from acquisitions. The company is now a leading player in Sweden in the Internet marketing seg- ment, and a European leader in organic search marketing. Getupdated started to internationalize in 2007, starting in the US, France and the UK.

Getupdated’s Business Areas

The company's operations are conducted through three business areas: Internet Media, Internet Solutions and Webhosting. Internet Media is active in Internet marketing through search marketing, SEO, advertising and Internet media planning. Internet Solutions offers services and products in web and portal de- velopment, web design, e-commerce and communities. Webhosting conducts hosting operations through one of Sweden’s largest web hosts.

Webhosting Internet

Solution Internet

Media

Getupdated’s Three Business Areas

Internet Solutions 23%

Internet Media 56%

Webhosting 21%

Sales by Business Area in 2007

Internet Solutions 10%

Internet Media 42%

Webhosting 48%

Sales by Business Area in 2006

Getupdated helps corporations market themselves and operate on the Internet. Although many businesses use the Internet as a communication and brand-building channel, the payoff on this marketing is often limited. But now more corporations are starting to use the Internet as a strategic tool to actively support and run their business, increase sales and secure an edge over competitors.

Internet Solutions 4%

Internet Media 55%

Webhosting 41%

Sales by Business Area in 2005

Operations 17

The Internet Media Business Area

Business Area Manager: Mattias Kaneteg Sales in 2007: SEK 122.1 m Operating profit 2007: SEK 20.8 m Employee headcount: SEK 20.8 m

Products and services: search marketing, SEO, Internet advertising and media planning

Selected customers: OKQ8, Ving, Avanza, 3, Veckans Affärer, Aleris, Secu- ritas and Bredbandsbolaget

Geographical presence: Sweden, UK, France and US

Competitors: iProspect, Big Mouth Media, ICrossing, Keybroker, Relevant Traffic, TradeDoubler, Nota Bene and Ad- vertising.com

The Internet Media Business Area

The Internet Media business area helps customers secure exposure on the In- ternet through SEO, buying banner space on various websites and media plan- ning for Internet marketing.

Offering Search Marketing

Search marketing is intended to improve a company website’s positioning on major search engines (Google, MSN, Yahoo and Altavista) so that websites get more visitors, and thus, customers. Search marketing has two parts, SEO and sponsored links. Players like Getupdated secure all sales from SEO, while search engines secure some 85% of sponsored link sales and resellers like Get- updated the remaining 15%.

SEO is intended to secure exposure of customer web or campaign sites in the top ten hits of independent search engine results, when searches are made on keywords relating to the company’s operations. This gives companies the opportunity to increase traffic to websites, and make them visible for people really interested in the company’s services and products. Getupdated has a special SEO function that ensures that customer websites get good positioning on search engines for the company’s selected keywords. By using Getupdated’s SEO service, companies ensure they are updated on all the major search en- gines and directories like Google, MSN, Sesam, Altavista and Yahoo.

Sponsored links are purchased space next to organic hit lists where compa- nies pay for every click generated to their websites. By sponsoring keywords, Internet Media helps customers pay for visibility when users enter predefined keywords into any of the major search engines, and thus gain relevant users quickly. Search engines display sponsored links as text banners above and to the right of organic hit lists. In addition, banners appear in Google’s search net- works, with websites like Froogle, Google groups, Gmail, AOL and Ask.com.

Google’s content network includes Google AdSense, which means banners can secure exposure on an infinite number of websites that have content relat- ed to the campaign keywords. Getupdated also offers companies professional assistance on sponsored links on MSN, Yahoo and Google.

The image is of Google search results. The hits on the right are sponsored links, while those on the left are organic hits.

Research indicates that almost all users notice the first organic hits. Eye tracking maps where users look after searching (red = most frequent).

Others 44%

Internet Media 56%

Share of Group Employee Headcount

Others 44%

Internet Media 56%

Share of Consolidated Sales

18 Operations

Affiliate Marketing

Affiliate marketing works by locating banners on relevant websites in Getupdated’s associate network. Both advertisers and websites where the banner is published earn on the collaboration, because every time a user clicks or orders a product, commis- sion is payable to the owner of the website where the banner is published.

Some of the publishers affiliated to Internet Media’s network are Prisjakt.nu, Startaeget.se, Sverigeresor.se, Jesper.nu and Com- pricer.se.

Internet Media Planning

Getupdated’s long experience and skills in search behavior and In- ternet marketing mean the company can offer media plans that recommend where, when and why customers should be visible on the Internet, and at what cost. The company’s overall grasp of the segment gives the customer the optimal solution in all search me- dia, search engines, digital directories, recommendations on where banner campaigns should be conducted and assistance in execut- ing strategies with proprietary products and those sourced from external providers. Getupdated is the only contact in the segment that deals with all administration and sales contacts.

Acquisitions in 2007

The companies Många Idéer Gruppen - MIG, Affiliator, Medi- aAnalys Trisodium, Ryce Holding, eTrafficJams.com, Optiwords and Just Search were acquired in the year.

The Acquisition of Just Search

In November 2007, Getupdated acquired UK company Just Search Ltd., which is one of the UK leaders in search market- ing. This acquisition—Getupdated’s biggest yet—also marks the genuine start of Getupdated’s international expansion. The acqui- sition enhanced Getupdated’s SEO capacity and skills generally, and on the key English-speaking market in particular.

Just Search primarily conducts business in the UK. In recent years, the company has traced annual growth of some 100%. Over 90% of Just Search’s customer base have chosen to extend their agreements, creating relatively high margins.

Sales in 2007 were SEK 32 m, with profit after tax of SEK 6.9 m. Significant increases to sales, and higher margins are expected in 2008.

Just Search’s founder and CEO, Paul Yates, has been a member

of Getupdated’s Board since December 2007.

Operations 19

The Internet Solutions Business Area

Business Area Manager: Johan Kadar Sales in 2007: SEK 50.8 m Operating profit 2007: SEK 8.1 m Employee headcount: 107 (March 2008)

Products and services: traffic analysis, campaign sites, Internet strategies, web and portal development, web design, e-commer- ce and communities

Selected customers: Intrum Justitia, Vattenfall, Poolia, K-Rauta, J Lindeberg, Brummer & Partners, Tele2, Citymail, Swedbank and VPC

Geographical presence: Sweden

Competitors: Cybercom, Know IT, Mogul, Creuna, Dropit, Valtech and others.

The Internet Solutions Business Area

The Internet Solutions business area offers products and services that satisfy customer needs to present and market themselves on the Internet. Internet Solutions helps its customers to realize marketing needs by analyzing custom- er traffic on websites, defining strategies to achieve predetermined marketing goals, creating and enhancing e-commerce solutions, portals, websites and intranets, and creating Internet campaigns and communities.

The central purpose of the business area is to help customers rationalize their work on Internet-based services, and to enhance customers’ Internet presences.

Offering

Getupdated analyses whether users are doing what the company wants them to, for example, placing orders, downloading product brochures or submit- ting requests for tenders. The level users do what companies want to is called conversion of the user into a business driver. When analysis is conducted, it is possible to conclude whether websites need to be re-implemented to increase conversion rates.

In such cases, Getupdated Internet Solutions offers to develop customer websites, extending right from strategy to web design, user-friendliness and information structures so that visitors really find or do what the customer wants them to. The company implements the technology platform to support this process, which may be a publishing tool to process website information, an e-commerce system or a community platform. The business area sells products and platforms from major vendors, and offers the associated consulting services, as well as a series of proprietary technology solutions.

Internet Solutions is an independent supplier of the market’s leading platforms and is a premium partner of EpiServer, a Microsoft Gold Certified Partner and a Premium Partner of RedDot and NetStar.

Acquisitions in 2007

The companies Cross Communications AB, Solarplexus and Trive AB were acquired in the year.

Others 68%

Internet Solution 32%

Share of Group Employee Headcount

Others 77%

Internet Solution 23%

Share of Consolidated Sales

20 Operations

The Webhosting Business Area

Business Area Manager: Mats Simonsson Sales in 2007: SEK 45.5 m Operating profit 2007: SEK 4.5 m Employee headcount: 30 (March 2008)

Products and services: Webhosting and domain sales Customers: customer base of some 70,000 Geographical presence: Sweden and Norway

Competitors: Active 24, One.com, Surftown, FS-Data, TeliaSonera and others.

The Webhosting Business Area

The Webhosting business area provides web hosting and domain name reg- istration for its customers. Business is conducted under the Crystone brand, which is now one of Sweden’s largest web hosts. Webhosting offers all hosting services like web hotels, dedicated servers, colocation and domain name registration.

Crystone now has some 70,000 customers, and 80,000 registered domains.

A number of acquisitions were conducted in the past two years, and in 2007, the focus was on integrating them into Crystone to increase business area prof- itability. The employee headcount was downsized from 52 to 30 and seven out of nine datacenters were closed to concentrate operations on Malmö and Stockholm. These measures resulted in Getupdated now being able to exploit economies of scale, and is expected to attain good profitability in the current year.

Offering

All Webhosting packages offer a comprehensive service to publish websites and use e-mail. The business area offers three packages in different price bands, where customers choose between Linux or Windows Server 2003, one suited for businesses, one for consumers and/or small businesses, and an entry-level package without telephone support. Packages can be upgraded with a series of supplementary services. Dedicated servers mean the customer rents a comprehensive package including a server, where Getupdated sets up the server and offers customers access. Customers can choose an array of sup- plementary services like monitoring and backups.

Colocation means the customer renting a site for its own server in Web- hosting’s datacenters. Again, customers can select a series of supplementary services such as monitoring and backups.

Acquisitions in 2007

Neno and Euronet Online were acquired in 2007.

Others 91%

Webhosting 9%

Share of Group Employee Headcount

Others 79%

Webhosting 21%

Share of Consolidated Sales

What Getupdated Does for Its Customers—Some Examples

NCC

Getupdated helped construction group NCC to develop a consistent and clear image for standardized communication. Previously, NCC had coordinated localized, diverse advertising, and Getupdated has taken an overall grasp of NCC’s positioning on search media.

The result is increased searchability and NCC becom- ing visible when searches are actually made. Getupdated also realized substantial cost-savings by coordinating advertising purchasing, which was previously conducted on a local basis.

Securitas

Securitas is a global leader in security, with offices in

over 30 countries. Getupdated assists Securitas with

SEO services. The aim is for the company to maintain

high rankings in organic search results (independent)

on the major search engines for keywords relevant to

Securitas’ product categories.

Aleris

Aleris is the largest care provider in the Nordic region.

Increasing freedom of choice in the care sector has made it more important for Aleris to create a brand image, raise awareness and drive business to the company—Aleris has defined the Internet as a central and strategic tool in this aim. Getupdated’s assignment is to assist Aleris in all parts of its Internet image-creation and marketing, which Aleris previously sourced from four suppliers. With Getupdated as its single partner, processing becomes more efficient, with access to specialist skills in each segment.

Yoursongs

Yoursongs supplies an advertiser-finance music service, with free music downloads to mobile phones. Your- songs has collaborated with Getupdated since January 2007, and is now Sweden’s largest independent mobile music channel. Getupdated has helped the company to expand its user base by increasing Internet visibility and accessing new target groups. An estimated 25% of the customer’s new members joined as a result of this collaboration.

OKQ8

Service station operator OKQ8 chose Getupdated

for search advisory services to increase its presence on

search media, in print and on the Internet. Getup-

dated’s assignment is to raise awareness of the company,

and attract more visitors to its website through spon-

sored links and SEO.

24 Skills and Values

Employee Profiles

Getupdated is a genuine knowledge-based company whose em- ployee skills are decisive to progress. The skills focus of Getup- dated’s professionals is on media, statistics, systems and web tech- nology.

Remuneration Principles and Skills Enhancement Salary Structure

Getupdated’s salary structure should stimulate good entrepreneur- ship, commitment and progress so operations can continuously improve. Salary structures should enable the company to hire and retain skilled professionals. The company offers salary on market terms, and sales-based commission. Salary levels should be set in- dividually, with the basic principle that salaries should be based on performance and results in terms of goals, knowledge and progress—conduct that is important to the position, market and the company’s circumstances.

Remuneration and Incentive Schemes

Depending on position, some Getupdated employees are eligible for various performance-related payments.

Skills Enhancement

At Getupdated, there is joint responsibility to enhance the com- pany’s skills alongside staff. Each employee is responsible for their own progress, while Getupdated is accountable for ensuring the right conditions for its employees being able to progress in their professional capacity. Individual employees are responsible for tak- ing the initiative and enhancing their own skills, identifying train- ing packages or other ways to enhance their skills that are relevant and necessary for them to progress in their responsibilities. Prima- rily, Getupdated prioritizes progress in individual responsibilities, and according to the plans formulated in appraisal interviews with each employee. Efforts to extend skills more generally through the company may also be supported.

Skills and Values

Fitness and Corporate Healthcare

Getupdated regards good health and fitness as an issue for the whole organization, and not merely a personal matter for staff.

Accordingly, it pursues a healthcare and fitness policy intended to support the individual in taking the initiative in activities that promote well-being, health and personal development. Getup- dated offers all permanent employees keep-fit subsidies.

The company endeavors to have the best preventative measures possible for employee health and well-being, both physical and social.

Organizational Resources

At year-end 2007, Getupdated had 303 employees, against 108 at year-end 2006. At present, the group has some 340 employees.

180 of group employees work at the head office in Stockholm, and others at offices in the US (Tampa and Fort Lauderdale), France (Paris), the UK (London and Manchester), Sweden (Stockholm, Kalmar, Gothenburg, Malmö and Borås) and Nor- way (Trondheim).

Of total staff, 188 work in the Internet Media business area, 107 in Internet Solutions and 30 in Webhosting. There are ten professionals active in group-wide functions for parent company Getupdated Internet Marketing AB.

Getupdated is a young, high-growth company, which completed 13 acquisitions last year alone. The

company has grown from 108 employees as of 1 January 2007 to some 340 in March 2008. This dy-

namic environment sets challenging standards for organizational resources and leadership to create

motivation and unity. In 2008, Getupdated’s focus will be on integrating new businesses and imple-

menting the group’s new values.

Skills and Values 25

Values

Getupdated builds on a number of fundamental values intended to create solidarity in the company.

The customer is always in focus at Getupdated. Operations are successful thanks to the company’s customers and partners. Every project is unique, and customers should always be completely satis- fied with results. In its collaborations, the company immerses itself to understand customer needs and solves problems with specialist skills and tried-and-tested technology. The company’s skilled pro- fessionals are its most important resource, a view that proliferates right through the organization. Accordingly, it is important that Getupdated is an attractive workplace, where leadership through motivation and goal-orientation gives employees the opportunity to take the initiative, participate and make progress.

Getupdated’s actions are directed by five guiding principles:

• Broad knowledge–means everyone at Getupdated stays updat- ed on market players, products and technologies.

• Professionalism–means everyone at Getupdated is businesslike in relationships with customers and the media.

• Simplicity–it should be easy for customers to do business with Getupdated. The company simplifies a complex market and customer decision-making.

• Long-termism–by always working close to the customer, eve- ryone at Getupdated will build long-term customer relations, with the customer feeling security and trust in Getupdated as a company.

• Entrepreneurship–will interweave everything the company

does, regardless of positioning or business segment.

26 Share Capital and Ownership Structure

Share Capital

Getupdated’s shares have been issued in accordance with Swedish law and are electronically registered with VPC (the Swedish Central Securities Deposi- tory & Clearing Organization, VPC AB, PO Box 7822,103 97 Stockholm, Sweden) and have the ISIN code SE0002316810. Getupdated’s Articles of Association stipulate that the minimum issued share capital is SEK 5,000,000 and the maximum is SEK 20,000,000. There will be a minimum of 10,000,000 shares and a maximum of 40,000,000 shares. The quotient value of shares is approximately SEK 0.567. All shares have equal rights to the company’s profits and surpluses upon liquidation, and confer the rights to one vote at Getupdated’s AGM. All shares are freely transferable.

Getupdated has 20,343,356 outstanding shares (including a set-off issue of 175,000 shares, currently in registration) corresponding to share capital of some SEK 11,527,078. On 26 March 2008, the Board decided to conduct a rights issue. Upon full subscription of the current new issue, the number of outstanding shares would increase by 6,781,119, and amount to 27,124,475, corresponding to share capital of some SEK 15,369,437.

Outstanding Options

The AGM in May 2007 resolved on the new issue of 109,087 warrants to the sellers of Affiliator AB. Each option confers the rights to subscribe for one share at a price of SEK 15.00, with subscription in the period from 1 Febru- ary 2009 until 28 February 2009, both dates inclusive.

The Board intends to propose that the AGM 2008 approves a stock option- based incentive scheme of a maximum of 2,000,000 warrants to be priced according to customary principles. Information on the proposed incentive scheme will be published in the notice convening the AGM.

Ownership Structure

Getupdated had some 2,530 shareholders as of 14 March 2008. The com- pany’s three largest shareholders are founder Mattias Kaneteg with 21.0% of the equity and voting rights (including independent and affiliated company holdings), former Board member Anders Varveus (including independent and affiliated company holdings) with 15.6% of the equity and voting rights and Board member Åke Eriksson (including independent and affiliated company holdings) with 15.3% of the equity and voting rights.

Marketplace

Getupdated's stock has been trading on First North, an alternative market- place affiliated to OMX Nordic Exchange, since 11 July 2007. Companies whose shares trade on First North are not liable to observe the same rules as listed companies. Instead, First North is regulated by a less extensive frame- work mainly tailored to small-cap and growth companies. Accordingly, an investment in a company whose stock trades on First North may be more risky than an investment in a listed company. All companies trading on First

Share Capital and Ownership Structure

Shareholders as of 14 March 2008

Shareholder

No. of Shares

Equity &

Vote Hol- ding, %

Mattias Kaneteg 4,239,361 21.0

Anders Varveus privately and

via companies 3,146,145 15.6

Åke Eriksson privately and via

companies 3,093,729 15.3

Angelizer Holding AB 683,736 3.4

Justin Yates 566,380 2.8

Paul Yates 566,379 2.8

Johan Kadar via companies 538,711 2.7 Danske Bank International S.A. 522,751 2.6

Dennis Haga 372,812 1.8

Nordnet Pensionsförsäkring AB 343,786 1.7 JRBM Fastighets & Invest AB 335,943 1.7

Fredrik Forssberg 329,975 1.6

PMG Media Group AB 263,138 1.3

Jimmie Pettersson 242,535 1.2

Caceis Bank Luxembourg, Cais

Bank, W8IMY 223,800 1.1

Other 4,699,175 23.3

Total 20,168,356 100.0

A set-off issue of 175,000 shares is currently in registration.

Including this issue, free float is 20,343,356.