Interim report January - March 2006

Growth in sales and profit

• Net sales for the first quarter rose by 23 per cent to SEK 556 (454) million, of which the acquired units contributed 14 per cent or SEK 63 million. • Profit before tax improved to SEK 15 (9) million. • Earnings per share after dilution are reported at SEK 0.78 (0.45). • During the quarter, Bong acquired the German competitor RCT Kuvert, US-based SMEAD’s envelope production in Estonia and 50 per cent of the UK envelope printer Nova Envelopes. • Cash flow after investment activities, but before acquisitions, totalled SEK 4 (-8) million. One-time items related to RCT were charged to cash flow in a total amount of SEK 29 million. • New restructuring measures have been initiated in Finland and Germany and will result in a reduction of 125 positions over a two-year period. Upon completion, the annual savings are estimated at SEK 48 million. The costs for these measures are expected to reach SEK 35 million and will be recorded in profit as a one-time item in the second quarter of 2006.