Year-end report January-December 2007

“An intensive effort to improve our margins bore fruit in the fourth quarter at the same time that ProPac showed continued high growth. Another source of satisfaction is that we once again delivered a strong cash flow” says Bong’s President and CEO Anders Davidsson.

• Net sales for the period January-December amounted to SEK 1991 million (1984) and fourth quarter sales reached SEK 518 million (522).

• Adjusted operating profit was SEK 25 million (23) for the fourth quarter and SEK 68 million (89) for the full year. Including one-time items, operating profit was SEK 25 million (18) for the fourth quarter and SEK 60 million (40) for the full year. Profit after tax for the full year was SEK 16 million (-1).

• Diluted earnings per share for the period January-December were SEK 1.17 (-0.04).

• Cash flow after investing activities for the fourth quarter is reported at SEK 39 million (33). For the period January-December, cash flow after investing activities was SEK 1 million (-7).

• The large-scale restructuring activities following the factory closures in Ireland, Germany and Poland were completed during the year. In Finland, the transfer of production from Tampere to Kaavi will be completed in the first half of 2008.

• Growth in ProPac and Russia continued during the year. ProPac sales reached SEK 200 million (165) and sales in the Russian market rose to SEK 49 million (26).

• The Board of Directors proposes a dividend of SEK 1 (1) per share for the financial year 2007.