BE Group publishes Annual Report for 2008

Press release

April 9, 2009

Today, BE Group’s Annual Report for 2008 is published on the company website www.begroup.com. In the Message from the CEO, new President and CEO Lars Bergström comments on a number of important steps taken during 2008:

- The acquisitions of Czechprofil and Ferram Steel have strengthened BE Group’s presence in the Czech Republic, where it is now the fourth-largest company in the distribution market. The acquisitions have been successfully integrated, thus setting the stage for more efficient operations in Business Area CEE.

- BE Group has continued increasing the service component of total sales from 31 percent to 33 percent. Due to the higher margins of service sales, this made a positive contribution to profit for the year.

Lars Bergström notes that 2008 ended with a sharp downturn for the whole market.

- On the bright side, 2008 as a whole became one of the best years ever for BE Group and consolidated operating profit rose compared to 2007. Nevertheless, the full year figures obscure the dramatic change in the latter part of the year, when a sustained upturn in the first half suddenly reversed into a steep decline in all markets as the global economy put on the brakes.

In a nutshell, BE Group’s strategy states that the company will use a larger and increasingly sophisticated service proposition to develop the business and achieve growth through acquisitions. This strategy remains firm.

- As the new president and CEO of BE Group, effective March 2009, I would like to emphasize that the strategy is strongly supported by the shareholders and will continue to govern operations in future. I would also like to say that I am looking forward with pleasure to leading BE Group, even as I am humbled at the prospect of the vast expertise and professionalism of the Group, the foundation of our success in the market now and in the future.

The printed version of the Annual Report can be ordered at www.begroup.com.