Income rises to SEK 247 m.

BT Industries AB (publ), January-June 1998 Income rises to SEK 247 m. Orders received SEK 4,391 m. (2,403) Operating income +107%, SEK 251 m. (121) Income after net financial items +87%, SEK 247 m. (132 ) Continued strong market The market for BT Industries' warehouse trucks and services is developing strongly. Both orders received and net sales rose for the first six months of the year and the company reports a substantial rise in earnings. Orders received amounted to SEK 4,391 m. (2,403). For comparable units - i.e. excluding Raymond - orders rose by 14 percent. Translated to comparable exchange rates, this corresponds to an increase of 13 percent compared with the corresponding period of 1997. Net sales amounted to SEK 4,121 m. (2,202). For comparable units and at comparable exchange rates, this corresponds to an increase of 13 percent compared with the corresponding period of 1997. Income after net financial items improved by 87 percent to SEK 247 m. (132 ). The equity ratio was approximately 25 percent. Continued strong demand The basis for BT's positive development is the market's continued growth in both Europe and North America. "The market looks promising, especially in Europe," says BT Industries President Carl-Erik Ridderstråle. "In addition to growth among our traditional customers, we are also seeing growth in new customer groups. What we are seeing is probably a 'second wave' of efficiency improvements and capital streamlining efforts in the daily goods sector and other industries. The result is increased demand for new, modern warehouse trucks." In Europe, orders received has increased, and despite an increased production rate during the spring, the order backlog has risen as well. North America has continued to show good growth. Both orders and sales have developed well. In other markets, the trend generally, with the exception of Southeast Asia, has remained strong, with satisfactory orders and sales. Eventful first six months In April, a new three-year delivery agreement was signed with Toyota Industrial Equipment in the U.S., further strengthening BT's position in the North American market. In May, Mechanical Handling Consultants Ltd., MHC, was formally taken over. BT thereby gained control over its distribution in the rapidly growing markets of Eastern Europe. In June a new, wholly owned sales company was established in Australia. In July (following the conclusion of the report period), a delivery agreement was signed with The Home Depot in the U.S. for 4,500 trucks. At present the new plant for hand pallet truck production is under construction in Toronto, Canada. "We have good reason to be pleased with the first half of the year," says Carl-Erik Ridderstråle. "As a whole, we are positive about the second half of 1998, when, among other things, activities to reduce tied-up capital will play a prominent role." Growing synergy effects Another key area is to capitalize on synergies between BT and Raymond. The impact on earnings has been limited so far. "A number of projects are under way, and coordination efforts are proceeding according to plan," explains Carl-Erik Ridderstråle. "We expect the impact on earnings to grow gradually during the period 1998-2000." For questions regarding the Interim Report, please contact President Carl-Erik Ridderstråle at +46-70-522 07 56 or +46-142-862 12, or Chief Financial Officer Per Zaunders at +46-70-522 10 07 or 46-142-860 32. For general questions, please contact PR Manager Göran Skoglund at +46-142-86 409 or +46-70-555 92 88.