Highlights of Q1 2010 performance

•  Total group income amounted to ISK
3,509 million, or similar to that of Q1
   2009 

•  EBITDA for the quarter
was ISK 35 million, while total comprehensive loss on
   the period was ISK
130 million
 
•  EBITDA on domestic operations is positive, while foreign
operations are on
   the borderline 

•  Applicon A/S concluded a major
3-year contract for ISK 1.8 billion, ensuring
   good performance from
operations abroad this year.  The loss on Applicon's Q1
   operations amounted
to ISK 32 million, but the outlook is for good profit for
   the remainder of
this year 

•  The company's financial situation will be reinforced in coming
months with a
   share capital increase and sale of assets 



Thordur
Sverrisson, CEO:

“Operating income on Nýherji's domestic activities grew by
3% over the previous
year in Q1 and EBITDA improved by almost ISK 65 million.
Q1 product sales are
up by almost 25% from Q1 last year and software
consultancy and services are
regaining balance. 

Major contracts of
Applicon A/S improved the operating performance of
activities abroad at the
end of the quarter. While this company has operated at
a loss totalling ISK
125 million the past two quarters, these contracts ensure
good results in
upcoming quarters. 

The outlook for the company's performance is now
positive, following the
extensive actions undertaken in Iceland to cut costs,
adapt operations to the
market situation and obtain important contracts both
at home and abroad. 

Nýherji's main task for the coming months will be to
secure the company's
financial situation. Proposals have been approved by the
Board of Directors to
the company's bankers involving measures to conclude its
financial
restructuring, including a share capital increase and sale of
assets.”


For further information contact:
Thordur Sverrisson, CEO of
Nýherji, tel. +354 893 3630