In future when we come to look back at 1998, I'm convinced that all of us at Carmen will see the past year as one of our all-time highs. Our revenue stream increased, our client list expanded, our product suite grew and staff numbers rose. My overall impression, since I took over as CEO in May, has been that Carmen is a modern, unique company, focusing on providing its clients with integrated solutions.

This year we signed agreements with Alitalia to supply Carmen Crew Assignment and Preferential Bidding. We also signed agreements with Iberia and Aeromexico, both for Carmen Pairing, Carmen Crew Assignment and Preferential Bidding.Our final client of the year was Aviaco for Carmen Pairing.

As I have stated before, airlines operate in an increasingly complex and competitive environment. I see Carmen's role as providing the airline industry as a whole with cutting-edge solutions that make them more competitive. Resource optimization is one of the most important aspects for any airline. Our job is to make sure that by using our products, airlines underpin their resources in the most productive and cost-effective way.

To meet our clients' needs we must have a wide range of products. This year, we have added three products to our suite: Carmen Interbids, Carmen Interopt and Carmen Crew Tracking. We will release more products including a Manpower Planning product in 1999.

For a solution provider like Carmen the proof of our success lies in the comments we get from our clients. "A system that truly optimizes crew utilization". "It allows planners to use their knowledge". " We can use Carmen's products as simulation tools with extraordinary results". "The benefits in cost savings are vital to our organization" are some that I have heard this year.

My message to everyone at Carmen is well done. My message to our clients for 1999 is that you all have a lot to look forward to. We will supply you with the future's solutions.

Per Norén
Chief Executive Officer