BE GROUP’S RESULT AFFECTED BY STOCK LOSSES ON STAINLESS STEEL

PRESS RELEASE
5 October 2007

As a result of heavily falling nickel prices the market price of stainless steel has fallen after the summer. Decline in prices has led to lower sales and generally higher stock levels in the whole of Europe.

Larger stocks and lower prices mean that BE Group’s result for the third quarter is impacted by stock losses and a one-off impairment of the stock value of a total of 35 MSEK. The one-off impairment which has come up in September, amounting to 27 MSEK of the total, is due to that estimated sales price, on part of the stock, falls below the purchase value during the fourth quarter.

The stock losses and one-off impairment does not affect BE Group’s underlying result, which BE Group follows and which the financial targets are based on. The stock losses will not have any cash-flow effects.

- We have seen an even sharper decline in market prices and demand for stainless steel than expected during the summer. This results in short-term negative accounting effects but probably also in a stabilization of the demand in a long-term perspective. The price development on stainless steel has due to the development of the nickel price been extraordinary during the past year with very fast changes as a result, says BE Group President and CEO Håkan Jeppsson.

The interim report for the third quarter will be published on Friday, 26 October, at 7.30 am.

If you have any questions, please contact:

Håkan Jeppsson, President and Chief Executive Officer, tel. +46 (0)705 50 15 17,
e-mail hakan.jeppsson@begroup.com

Torbjörn Clementz, CFO, tel +46 (0)708-69 07 88,
e-mail torbjorn.clementz@begroup.com

The information in this press release is such that BE Group is required to make public under the Swedish Securities Exchange and Clearing Operations Act and/or the Swedish Financial Instruments Trading Act. The information was sent out to be made public on 5 October 2007 at 1.30 pm. CET.