The short-term receivables for 4Q03 increased to 7.2 MSEK from 3.0MSEK in 3Q03. What is the reason for this increase and will any of this increase by included as revenue in 1Q04?

Shareholder, Roger Lindbergh

Short-term receivables are comprised of the following three main elements:

1. trade debtors
2. prepaid expenses and accrued revenues
3. other debtors

The increase in the short-term receivables for 4Q03 is primarily due to a transfer from long-term ’trade debtors’ to short-term ’trade debtors’. This transfer has been made because the outstanding amounts have become due within twelve months, according to standard accounting routines. The transferred receivables relate primarily to deferred payments for System 2000 installations, which will be effected later in 2004.

The second major item affecting the increase of short-term receivables for 4Q03 related to ’other debtors’. Specifically, this related to the exercise of the 25,000 outstanding warrants on 30 December 2003. Due to the year-end holidays, the final payment was received in the first days of 2004.