Strong cash flow for BE Group

Press Release July 16, 2009

• The steep downturn in demand has flattened and there are indications of a weak recovery. • Net sales declined in the second quarter by 49% to SEK 1,071M (2,116) with a sharp downturn in tonnage. • Operating loss of SEK 96M (250) attributable to lower tonnage and sales prices, which have led to inventory losses of SEK 85M. • Reduction in working capital of SEK 190M contributed to positive cash flow. • The cost savings programme is proceeding as planned and estimated cost reductions of at least SEK 150M are expected in 2009. BE Group President and CEO Lars Bergström’s remarks on the report: “The downturn in demand flattened in the second quarter, but at a low level. A weak increase in demand in Sweden late in the quarter contributed to the positive underlying EBITA reported by our Swedish operations, but overall tonnage was lower than in Q1.” “Despite continued declines in tonnage and sales prices that have dropped more than expected, we have successfully maintained earnings in an acceptable manner. For BE Group as a whole, we are reporting an improved underlying gross margin compared to the last two quarters.” Efforts to reduce working capital and adjust inventories to current demand generated positive cash flow of SEK 92M (105) before the change in net debt. The cost savings programme also continued developing well and has thus far lowered BE Group’s costs by approximately SEK 80M. “For the full year of 2009, we expect, as before, considerably weaker demand and lower sales prices than for the full year of 2008. We do not expect the recovery to show up until late in the third quarter, at the earliest, since demand is likely to be low during the industrial holiday months of July and August.” “We will continue adjusting inventory levels and believe inventory losses will subside during the second half, when we also expect inventories to correspond to demand,” Lars Bergström explains. A logistics centre went operational at mid-year within the framework of existing operations in Ostrava, Czech Republic. This provides BE Group the opportunity to coordinate shipments from joint purchases in Central Europe to BE Group’s operations in Scandinavia and the Baltic countries in a more efficient and environmentally benign way. The information presented here is such that BE Group AB (publ) is required to publish pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading Act. The information was released for publication on July 16, 2009 at 11:00 a.m. CET.