LBi Q1 results 2009 - Protecting margin in testing times

PRESS RELEASE
Stockholm/Amsterdam, 29 April 2009

LBi - the global digital marketing and technology agency today
announces its first quarter results 2009

Protecting margin in testing times

Net sales the first quarter amounted to EUR 34.6 million compared to
EUR 37.8 million last year, a decrease of  5.9% at constant rates,
mainly due to slightly lower demand and slower decision making in the
US and Central European markets.

Despite top line pressure, margins were protected as a result of cost
efficiency measures and portfolio rebalancing.

Adjusted EBITDA (excluding one-time items) came in at  EUR 3.8
million compared to EUR 2.2 million (adjusted) last year,
representing an increase of 76.4% at constant rates. Adjusted EBITDA
margin reached 10.9% compared to 5.7% last year.

Earlier announced strategic restructuring charge of EUR 3.8 million
taken to lower the cost base.
Annualised savings expected to exceed EUR 9 million.

Net result was EUR -2.5 million (-0.7).

Earnings per share in the first quarter 2009 were EUR -0.04 (-0.01).

Financial highlights


+-------------------------------------------------------------------+
| EUR million        | Jan-Mar | Jan-Mar | Change at constant rates |
|                    | 2009    | 2008    |                          |
|--------------------+---------+---------+--------------------------|
| Net sales          | 34.6    | 37.8    | -5.9%                    |
|--------------------+---------+---------+--------------------------|
| EBITDA             | 0.0     | 3.6     |                          |
|--------------------+---------+---------+--------------------------|
| EBITDA adjusted*   | 3.8     | 2.2     | 76.4%                    |
|--------------------+---------+---------+--------------------------|
| EDITDA-margin      | 10.9%   | 5.7%    |                          |
| adjusted*          |         |         |                          |
|--------------------+---------+---------+--------------------------|
| EBIT               | -1.7    | 0.6     |                          |
|--------------------+---------+---------+--------------------------|
| Net result         | -2.5    | -0.7    |                          |
|--------------------+---------+---------+--------------------------|
| Earnings per share | -0.04   | -0.01   |                          |
+-------------------------------------------------------------------+


*First quarter 2009 excludes a EUR 3.8 million restructuring costs.
First quarter 2008 excludes a EUR 1.4 million non cash gain on
dissolvement of three dormant entitities in the Netherlands, whose
businesses have been transferred to LBi Lost Boys


A word from the CEO
In the first quarter 2009 LBi recorded an adjusted EBITDA of EUR 3.8
million on net sales of EUR 34.6 million. This represents an EBITDA
improvement of 76.4% over the same period last year at constant
rates, with net sales showing a decline of 5.9% at constant rates.
The result is adjusted and does not include the impact of a one-time
EUR 3.8 million restructuring charge as announced on 6 April 2009.
Our revenue decline in Q1 has principally occurred as a consequence
of a slowdown in decision making on the client side. While headline
budgets for digital are broadly stable or even slightly up on last
year billings, project momentum has been negatively impacted by
recently accelerated organisational change within the client
marketing function.

We expect pressure on the top line to continue in a number of our key
markets and we therefore earlier announced the reduction of
approximately 9% of the global headcount, representing 150 FTE. At
the same time we decided to speed up the formation of the final phase
of our organisational redesign. These combined actions across the
group will have a significant structural impact on our cost base,
annualised savings are expected to exceed EUR 9 million.

Following this restructuring, we believe the new organisation is now
right sized to deliver a good EBITDA performance over the course of
the year. While we expect the development of the top line to remain
challenging, we are confident that we can protect and indeed improve
our margin over the remaining quarters. The accelerated
implementation of both the Central European and US East coast hub
also further differentiates our offering. LBi in 2009 will emerge as
one of the few full-service digital agencies truly constructed from
the ground up to handle complex global agency of record accounts.

Luke Taylor, CEO