INTERIM REPORT FOR THE PERIOD JANUARY 1 – MARCH 31, 2006

Increased growth and profitability

First quarter 2006 compared with first quarter 2005 • Net sales amounted to SEK 233 million (157), an increase of 48 percent. • Operating profit amounted to SEK 21 million (10), for an operating margin of 9 percent (7). • Profit after tax amounted to SEK 21 million (10). • Earnings per share for the period amounted to SEK 0.32 (0.17). • Cash flow from operating activities amounted to SEK -1 million (9) and was due to the fact that a customer payment of SEK 18 million was not received until just after the conclusion of the quarter. • The acquisition of Resco AB (publ) was finalized after shareholders representing 95 percent of the share capital accepted the offer from AcandoFrontec. • One-time costs for the merger of SEK 5 million have been charged against operating profit. Adjusted for these expenses, the operating margin was 11 percent. • The acquisition of e-motion technology AB was implemented. “The year has begun with a good level of demand and capacity utilization. We are now seeing signs of price increases for the first time in a very long time,” says Lars Wollung, President and CEO of AcandoFrontec.