Year-end report FOR THE PERIOD JANUARY 1 – DECEMBER 31, 2005

A strong fourth quarter

January - December 2005 compared with the corresponding period of 2004 • Net sales amounted to SEK 646 million (608). • Operating profit rose to SEK 48 million (33), for an operating margin of 7.4% (5.4). • Profit after tax amounted to SEK 54 million (36), an increase of 50%. • Earnings per share for the year amounted to SEK 0.88 (0.61), an increase of 44%. • Cash flow from operating activities rose to SEK 31 million (-22). • Acquisition of 27 percent of AS WMG in the Baltic countries with an option to acquire the remaining shares by March 2010. Fourth quarter 2005 compared with fourth quarter 2004 • Quarterly net sales amounted to SEK 200 million (167), an increase of 20%. • Operating profit rose by 60% to SEK 24 million (15), for an operating margin of 12% (9). • Cash flow from operating activities amounted to SEK 24 million (6). In February 2006: • Resolution by the Extraordinary General Meeting to issue an offer for Resco AB (publ). • An agreement has been signed and a resolution taken by the Extraordinary General Meeting to acquire the operations of e-motion technology AB. “Against the background of the market’s development in late 2005, we anticipate good demand in 2006 in what remains a competitive industry,” says Lars Wollung, President and CEO of AcandoFrontec For more information, please contact Lars Wollung, President and CEO telephone +46 8 699 72 11 Bertil Carlsén, Executive Vice President & CFO telephone +46 8 699 71 31 Jan Rehn, Director of Communications and Investor Relations telephone +46 31 345 32 43 Financial information is also available on our website www.acandofrontec.com