QUARTERLY REPORT FOR TAGMASTER AB July - September 2013

Continued sales increase with profit Third quarter · Net sales increased during the third quarter by 13% to 11,2 MSEK (9,8) · Result before depreciation (EBITDA) was 0,4 MSEK (0,5) · Net result was 0,01 (-2,9) · Result per share was 0,00 SEK (-0,03) · Cash flow from the business was 0,8 MSEK (-0,1) January - September · Net sales increased during the period by 24% to 36,7 MSEK (29,6) · Result before depreciation (EBITDA) increased to 2,5 MSEK (1,1) · Net result was 1,3 MSEK (-3,0) · Result per share was 0,01 (-0,03) · Cash flow from the business was -1,8 MSEK (-2,4) Sales   and result TSEK Third   quarter Accumulated   to September 2013 2012 Change 2013 2012 Change Sales 11 173 9 848 13% 36 690 29637 24% Result from sales (EBITDA) 419 521 -20% 2542 1137 124% Margin from sales(EBITDA) 3,8% 5,3% 6,9% 3,8% Result before tax 13 -2861 -100% 1337 -2951 -145% Operational cash flow 818 -121 -776% -1761 -2392 -26% Result per share 0 -0,03 0,01 -0,03 Comments by the CEO Our positive sales development has continued but we are still not satisfied with the growth rate. Our growth has been strong in the Asian region while Europe is still weak. Our investment in the very important North American market continues and we have during the period taken a number of important projects in Access/Parking for some major universities. Our work on a new product family within UHF continues according to plan and we already see a great interest among our partners to get a wider offering from TagMaster. With our new product family we will be able to address a market segment where the growth rate is high and the launch will start during the end of the year and sales start will be in the first quarter of 2014. This is just a beginning of our development efforts to offer attractive and innovative products meeting the customer needs today and for the future. During the period we have worked on strengthening our offering to the Transportation (Rail) business by clarifying the components of which our value adding offering is composed. Ourdelivery will for the future consist of consulting, products and service and we will thereby be able to increase the value for our customers by offering them the competence and experience we have consolidated over a number of years. As we have said earlier, we are still in a mode of change which may influence the stability in our quarterly figures during a few more quarters ahead of us. Our profitability is still too low but we can see that all the initiatives we work with in different departments are producing good results which will also show up financially. We are on good way to show a profitable full year for TagMaster which is the first step in building a future growth company. Jonas Svensson CEO This report and previous financial reports and press releases are to be found on the company home page www.tagmaster.com For further information please contact: Jonas Svensson, CEO, +46 8-6321950, jonas.svensson@tagmaster.com About TagMaster TagMaster is an application driven technology company that designs and markets advanced radio frequency identification (RFID) systems and information products for demanding environments. Application areas include vehicle access control, rail bound transportation and logistics, in order to increase efficiency, security, convenience and to decrease environmental impact. TagMaster has dedicated agencies in the US and in China and exports mainly to Europe, Middle East, Asia and North America via a global network of partners, systems integrators and distributors. TagMaster was founded in 1994 and has its headquarters in Stockholm. TagMaster is a public company and its shares are traded on First North stock exchange in Stockholm, Sweden. www.tagmaster.com