LBi announces fourth quarter and year-end results 2008

PRESS RELEASE
Stockholm/Amsterdam, 12 February 2009

LBI International AB ("LBi"), LBi - the global digital marketing and
technology agency today announces its fourth quarter and year-end
results 2008. See link below to download the report.

Mr Luke Taylor (CEO), Mr Theo Cordesius (EVP) and Mr Huub Wezenberg
(acting CFO) will comment on the results and market developments
during a conference call for press, analysts and investors. The
conference call will start at 09.30 CET.

Details for the conference call:
Access Number               :       +31 (0)20 717 68 68
Participant Pincode        :        67960870#


Executive summary
- Good overall performance in the fourth quarter given the
deteriorating economic environment
and the material adverse currency effects

- Strong new business performance in the fourth quarter in the main
offsets contraction in spend across existing accounts

- Net sales in the fourth quarter increased by 21.7% at constant
rates and amounted to EUR 39.0 million (36.6) year-on-year. Organic
growth is pressured by ongoing rebalancing of portfolio and move to
higher margin retained business

- Net sales for January-December increased by 9.7% at constant rates
while EBITDA grew by 37% year-on-year

- Fourth quarter EBITDA came in at EUR 5.6 million, a more than
doubled improvement at constant rates, translating into an improved
EBITDA margin of 14.2% (6.7%)

- Earnings per share in the fourth quarter came to EUR 0.07 (0.07)
and EUR 0.15 (0.18) for the full year
(January - December). The Board will not propose  any dividend for
2008

- Abu Dhabi office opening in the quarter to boost global offering
and improve exposure to fast growing markets

- Huub Wezenberg (acting CFO) appointed as new Chief Financial
Officer LBi International

- For 2009 LBi expects that the continued migration of spend from
off-line to online will partly mitigate the contraction in overall
marketing spend. New business success is also expected to help
off-set any further shrinkage of budgets with retained clients


Luke Taylor, CEO: In Q4 2008 we recorded an EBITDA result of EUR 5.6
million, a margin of 14.2% on revenues of EUR 39.0 million. EBITDA
for the full year was EUR 21.3 million, an improvement of 37.0% at
constant rates. This is a good performance given the backdrop of a
rapidly deteriorating economic environment and material adverse
currency effects.

Most markets in which LBi is active performed broadly in line with
expectations. The quarter was characterised by a rise in project
cancellations and some retained clients postponing projects or
reducing marketing spend. These developments combined with our
continued and deliberate focus on quality of earnings pressured the
top-line performance. At the same time we won a significant amount of
new business during the period. Across our markets we saw some
exceptional local and inter-country performances and LBi secured
significant wins against global competition. New international
mandates include ING, E-concern, Electrolux and Puma. A number of
these engagements started in Q4 and the strong new business
performance was therefore able to offset the contraction in spend
across several existing key accounts.

Against this backdrop of uncertainty, the majority of markets were
able to adequately protect, and in some markets even improve margins.
In most regions EBITDA levels are now typically in line with our
target threshold of 18 %: UK EBITDA was 20.5%, Central and Southern
Europe 17.9%, the Nordic region 16.6%. The US however disappointed at
13.2%. The revenue decline in this region was quite precipitous and
earnings were further adversely affected by a one-off project
overrun, for which adequate measures are now in place. In order to
further boost our global offering and improve our exposure to
fast-growing markets, we successfully opened a new office in Abu
Dhabi to serve demand in the UAE region.

2009 is at the moment difficult to call, Q1 is traditionally a weaker
quarter and this year will be no exception. In all regions business
conditions are expected to become more challenging. Most retained
clients have to date recommitted to previously agreed levels of
spend, but continued uncertainty and organisational unrest within
marketing departments could still impact both budgets and project
momentum leading to further pressure on the revenue line in the short
term.

Looking further ahead it is vital that our strong new business record
is able to broadly of-set any significant shrinkage of budgets with
retained clients. We remain at all times confident of our ability to
win large-scale strategic assignments through our global network. The
increasing number of sizeable mandates awarded during Q4 2008
strengthens our conviction that client budgets are being diverted
away from broadcast TV-based messaging into more accountable digital
formats. With our differentiated and compelling digital offering we
should therefore be able to perform reasonably well in these
difficult economic circumstances.

In line with the past year, we will also continue to act quickly to
right-size the organisation and safeguard efficiencies. By doing
this, we should be able to protect our strong margins going forward.


Contacts
Luke Taylor, CEO, LBI International AB
+44 20 7063 6465, luke.taylor@lbi.com

Huub Wezenberg, CFO, LBI International AB
+31 20 460 4500, huub.wezenberg@lbi.com

Eva Ottosson, Group Communications
Manager, LBI International AB
+46 709 41 21 40, eva.ottosson@lbi.com


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 over 1,600
professionals located primarily in the major European, American and
Asian business centers; such as Amsterdam, Atlanta, Berlin, Brussels,
London, Milan, Mumbai, New York, Paris and Stockholm. LBi is listed
on Nasdaq OMX in Stockholm and NYSE Euronext in Amsterdam (symbol:
LBI).
www.lbi.com