Interim report January-June 1999

INTERIM REPORT JANUARY - JUNE 1999 Orders received increased by 20 percent to SEK 1,051M (874). Net sales rose by 14 percent to SEK 963M (847). Operating income fell by 25 percent to SEK 45M (59). Income after financial items fell by 10 percent to SEK 50M (55). Decision to start production of base station antennas in China. Strong sales in North America. Market Allgon's forecast that the number of sold mobile telephones for 1999 will exceed 240 million stands. The North American market has developed positively during the year. Both subscriber development and expansion of the networks have been strong. In June, the American telecommunications authority, Federal Communications Commission (FCC) proposed changed conditions about who will pay mobile telephone calls in the USA. FCC's proposal means that, as in most of the world, the calling party pays its outgoing calls in accordance with the principle that "calling party pays". This, in combination with simpler tariff structures and increased use of prepaid subscriptions, is expected to increase utilization of the mobile telephone networks still further and lead to increased network investments. The telecom sector in China is currently undergoing changes in the operating structure and this has slightly slowed down the investment rate during the year. Allgon estimates that subscriber growth in China will be significant in the next few years. A low penetration ratio, together with a large need for expanded infrastructure, contribute to the fact that investments will increase significantly in the future. Both North America and China constitute markets with significant growth potential for Allgon Second quarter 1999 Allgon's invoicing for the second quarter rose by 21 percent to SEK 528M (435). Orders received increased by 18 percent to SEK 520M (441). Income after financial items fell to SEK 23M (30). At the end of the quarter, a couple of American customers placed orders for base station equipment that was available in Allgon's inventories which meant that income and net sales was slightly higher than expected. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/07/13/19990713BIT00190/bit0001.doc http://www.bit.se/bitonline/1999/07/13/19990713BIT00190/bit0002.pdf

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