Aktiv Kapital First Quater Sees Earnings Increase

In the first quarter of 2006, Scandinavian debt collection/purchasing giant Aktiv Kapital achieved revenues of MNOK 314 (US$51.3M). The total revenue growth of 8.2% was achieved mainly through the acquisitions of portfolios during the last 12 months. The cash received from portfolios in the first quarter amounted to MNOK 452 (US$73.8M) or an increase of 10.8%. Operating profit for the quarter was NOK 98.8 million, up 4.8% from the same period in 2005. EBITDA in the first quarter was MNOK 351.9 (US$57.5M). The increase in payroll and other operating expenses is mainly due to the inclusion of the subsidiary in Canada acquired in Q4 2005.

Portfolios
In Q1 2006, cash collections on portfolios were NOK 452 million representing an increase of 10.8% compared to Q1 2005. Interest income for Q1 2006 (as calculated under IFRS) amounted to NOK 215.8 million, showing an increase of 9.3% compared to Q1 2005 and 6.6% compared to Q4 2005. Operating profit on the portfolio business in Q1 2006 was NOK 98.0 million, 4.7% higher than Q1 2005.In Germany, an agreement was signed to acquire 20.337 accounts with a face value of approximately NOK 1.282 million from a major provider of consumer loans. There were two further portfolio purchases in Germany with outstanding balances of approximately NOK 390 million and NOK 155 million. In the UK an agreement was concluded with a major bank to acquire about 12.500 debts on a forward flow basis over 12 months with an approximate face value of NOK 700 million and a number of smaller agreements were signed with existing vendor relationships. Additional portfolio acquisitions took place in Austria, Sweden and Canada.

As a result of these transactions, taken together with existing forward flow arrangements, Aktiv Kapital ended Q1 2006 with completed acquisitions and investment commitments for the rest of the year in excess of NOK 1.100 million. Total acquisitions in 2005 amounted to approximately NOK 1.200 million.

Debt collection
Income from debt collection in the first quarter of 2006 amounted to MNOK 60 (55). The operating profit margin decreased from 12.7% in the first quarter of 2005 to 11.25% in the first quarter of 2006. The decrease is mainly due to the continued competitive market especially in Norway where the margins have been under pressure.

Administrative and financial services (AFS) With revenues of MNOK 24 (22) in the first quarter, the revenue growth for the AFS business segment is 12%. The operating profit in the first quarter of 2006 amounted to MNOK 5.1 (3.6) or an increase of 41%.

Financial position
Loan agreements with banks representing in total MNOK 2.622 will be refinanced during 2006 of which MNOK MNOK 2.094 has been classified as short term interest bearing loans and borrowings. Aktiv Kapital has received an acceptable offer to refinance the entire Group and expects to have completed the refinancing in the second quarter of 2006.

The Group continues to evaluate its currency and interest rate positions, and will monitor its hedging strategies in accordance with what is seen in the market.

Outlook
The liquidity position together with a strong cash flow, debt financing potential in existing portfolios and solid equity gives the Group a firm foundation for further growth. In 2006, Aktiv Kapital will continue its activities to sustain growth and assess new acquisitions in light of the various countries respective economic prospects. The underlying trend in our core business is positive.