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Another milestone quarter - expanding into the UK and Ireland through acquisition of ROC


Zalaris' Q3/17 revenues were up 54.1% to NOK 150.6 million compared to the
corresponding period last year. The EBIT margin was 4.4%, marked by M&A and
integration activity. Prestigious contract signed with Norwegian bank DNB ASA.

Zalaris ASA has this year completed two major transactions, acquiring sumarum AG
in the second quarter and ROC Global Solution Consulting Limited in the third.
The company has thereby grown from a mostly Nordic player to a pan-European
provider of payroll and HR services.

"Q3 was another milestone quarter for Zalaris. We expanded into UK, Europe's
largest market for BPO. At the same time, we also continued organic growth,"
says Hans-Petter Mellerud, Zalaris' CEO and founder.

Sales increased 54.1% to NOK 150.6 million in Q3/17 versus Q3/16. The ROC
transaction will have full effect in the profit and loss statement from Q4/17.
Organic growth in the original Zalaris business was 7.2%, with revenues of NOK
104.7 million in the third quarter.

HR Outsourcing remains the largest segment in terms of revenues, but the cloud
services business continues its significant growth, and recorded NOK 25.7
million (NOK 9.4 million) in revenues in Q3/17. Cloud services now represent
16.4% of total revenues.

Now focus on margin expansion
Group operating profit was NOK 6.7 million corresponding to a 4.4% margin (9.2
million or 9.4%) in Q3/17. Profits in the third quarter were marked by
post-acquisition integration activities and seasonal variations.

"We will now continue integration efforts while maximizing the value of our
combined capability in the marketplace. We have established a structured program
aiming at improving margins, targeting the market leaders," Mellerud says.

Zalaris expects to gain additional synergies and efficient improvements
associated with this year's acquisitions. The company seeks to maintain or
increase profitable historic organic growth rates. The two acquisitions will
result in a nearly 80% increase in revenue.

New contract awards
In the third quarter, Zalaris signed a five-year agreement with Norway's largest
bank DNB ASA, to provide a full suite of cloud solutions including payroll and
talent management for their approximately 9 500 employees.

"We have great solutions supporting the financial services industry with focus
on efficiency, strategic work force planning and regulatory compliance and we
are happy to work with an ambitious and demanding client," says Mellerud.

"The DNB agreement is based on our proven integrated solution, which combines
Zalaris' cloud offering and SAP SuccessFactors. This is another example of the
breadth and depth of our services, applied to a sector with especially high
demands and extensive focus on regulatory issues as well as strategic Human
Capital Management," he adds.

Contact
Hans-Petter Mellerud, CEO and founder
Mobile: +47 928 97 276
E-mail: hans-petter.mellerud@zalaris.com

Nina Stemshaug, CFO
Mobile: +47 982 60 394
E-mail: nina.stemshaug@zalaris.com