SOURCE: LBI International AB (publ.)

LBI International AB (publ.)

August 26, 2010 02:07 ET

Higher sales and underlying results as market sentiment continues to improve

Last financial report issued by pre-merger LBI International AB; does not include Bigmouthmedia results

AMSTERDAM, THE NETHERLANDS--(Marketwire - August 26, 2010) -  LBi International N.V. today reports the last standalone second quarter and half year results of LBI International AB ("LBi") for the period ended 30 June 2010. On 29 July 2010 the merger with Obtineo Netherlands Holding N.V. (consisting of Bigmouthmedia and EUR 40 million in cash) was completed and a new company was formed called LBi International N.V., the largest European marketing and technology agency. LBi was subsequently delisted from Nasdaq OMX Stockholm and NYSE Euronext Amsterdam on 26 July 2010.

LBi International N.V. obtained a new listing on NYSE Euronext Amsterdam (symbol: LBI) on 5 August 2010. The new company will initiate financial reporting consolidating LBI International AB and Obtineo Netherlands Holding N.V. results on 28 October 2010 with the publication of its third quarter and year-to-date 2010 results. For more historic pro forma consolidated financial statements of LBi International N.V. reference is made to the Prospectus (www.lbi.com) for the admission to listing on NYSE Euronext Amsterdam and for the rights offering underwritten up to EUR 10 million which is currently in progress.

EXECUTIVE SUMMARY

Second quarter highlights

- Net sales up 12% year-on-year, reflecting continued recovery of demand and strong commercial and operational progress in all regions.

- Adjusted EBITDA (excluding transaction charges) up 11% year-on-year as demand for an integrated full service digital offering increase.

- Business in continental Europe picking up in the wake of US and UK business, with solid performance in the Netherlands and rebound in Scandinavia.

- Market sentiment expected to further improve in the rest of the year; increasing interest by clients in agencies that blend search, direct response, data and digital skill sets.

- Please note that Bigmouthmedia sales EUR 5.5 million, EBITDA of 1.9 million (pro forma revenue/EBITDA for the new group EUR 43.8 million resp. EUR 6.9 million).

A WORD FROM THE CEO

Our second quarter results show that we continue to benefit from an improving demand for digital services across the board. The US and UK markets which have pace set the recovery in the first quarter showed further growth. In addition revenues also clearly picked up in Central & Southern Europe and Scandinavia this quarter.

In this quarter, we have seen a further year-on-year improvement of underlying operating margins in almost every region. The only exception was the Central & Southern European region where the profit performance of our MetaDesign branding business in Germany is down relative to the same period last. Given the recent increase in inbound order levels, we do expect a meaningful recovery in the top line of this business in the coming months.

During the quarter we continued to fine tune and optimise the company structure to better promote collaboration and full service platform efficiencies. Over the last two years, we have embedded a consistent level of excellence and a performance driven culture across the business. We have quietly transformed our organisation and upgraded most of our local leadership teams. We now have a strong platform for future growth.

We are very pleased with the quality of recent new blue chip business successes and encouraged by the enthusiastic client response to our unique full service proposition which from the third quarter onwards - following the completion of the merger with Obtineo Netherlands Holding N.V. ("Obtineo") - will also include the advanced Search capabilities of Bigmouthmedia.

Further new business success and a marked improvement in sentiment across the European markets, especially Germany should deliver further consistent growth in both the third and fourth quarter of 2010. We expect to gradually increase our margins as improved sentiment and revenue visibility will convert into more efficient resource allocation.

The period under review has been particularly labour intensive for the company, marked by the preparations for the merger with Bigmouthmedia and complex legal and financial redesign. The transaction was formally concluded in July and as a consequence LBi now has new strategic anchor shareholders and also operates as a Dutch NV with a single listing on Euronext Amsterdam. This new listing and the injection of a further EUR 50 million delivers an entrepreneurial platform which will allow LBi to further drive consolidation in the sector.

Luke Taylor, CEO

About LBi

LBi is a global digital marketing and technology agency, blending insight, creativity and expertise to solve business problems. The largest genuinely full service agency of its kind in Europe, LBi provides the full range of digital capabilities, including digital strategy, branded content, service design, media, CRM, technology, managed hosting and support services.

The company employs approximately 1,500 professionals located primarily in the major European, American and Asian business centres; such as Amsterdam, Atlanta, Berlin, Brussels, London, Milan, Mumbai, New York, Paris and Stockholm. LBi is listed on NYSE Euronext in Amsterdam (symbol: LBI).

LBi Q2 2010 report: http://hugin.info/86897/R/1440391/384814.pdf

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