INTERIM REPORT JANUARY - JUNE 2008

CONTINUED GROWTH
• Inflow of orders: SEK 5,075 million (4,835)
• Net sales: SEK 4,530 million (4,390)
• Operating earnings: SEK 283 million (192)
• Net earnings: SEK 178 million (117)
• Net earnings per share: SEK 5.95 (3.87)

Cardo shows continued growth for the half-year 2008. After an inflow of orders in the first quarter in line with a strong first quarter the previous year, the second quarter saw the inflow of orders improve again. The inflow of orders was particularly good within the divisions Wastewater Technology Solutions and Pulp & Paper Solutions. For Asia-Pacific, the inflow of orders was very satisfactory with an especially good trend in Australia.

The service operation continues to enjoy a good trend. Price rises implemented within the Group’s door divisions had an effect during the period.

Operating earnings were affected by the weak US dollar in the sum of SEK -13 million.

RESULTS - COMPLETE REPORT
Please see the enclosed pdf document for the complete report where all tables and summaries can be found. The report is also available at www.cardo.com

INFLOW OF ORDERS, NET SALES AND EARNINGS
Second quarter 2008
During the second quarter, the inflow of orders amounted to SEK 2,634 million (2,426), up 9% after adjustment for the effects of exchange rate movements. The inflow of orders rose in all divisions. Implemented price rises had an effect during the quarter.
Net sales amounted to SEK 2,429 million (2,311), up 6% after adjustment for the effects of exchange rate movements. Operating earnings amounted to SEK 197 million (173). Operating earnings were affected by the weak US dollar in the sum of SEK -5 million.

Period January – June 2008
During the first half-year, the inflow of orders amounted to SEK 5,075 million (4,835), up 5% after adjustment for the effects of exchange rate movements. The first half-year shows good growth in most regions with a particularly strong trend in Asia-Pacific. Latin America shows a decline in comparison with the strong first half-year of the previous year as a consequence of fewer project orders within Pulp & Paper Solutions.
Net sales amounted to SEK 4,530 million (4,390), up 3% after adjustment for the effects of exchange rate movements. Operating earnings improved to SEK 283 million (275, excluding restructuring costs). Operating earnings were affected by the weak US dollar in the sum of SEK -13 million.
Net earnings amounted to SEK 178 million (117), which is equivalent to SEK 5.95 (3.87) per share.
Cash flow from operating activities was SEK 213 million (134) after tax, which is equivalent to SEK 7.11 (4.47) per share.

ACQUISITION
July, after the end of the period, saw the acquisition of the Finnish company Kajaani Process Measurements Oy (KPM), which is one of Finland’s leading manufacturers of sophisticated measuring instruments for the pulp and paper industry. KPM has ten employees and sales of approximately SEK 20 million. KPM, which was founded in 2001, runs an operation in Kajaani in northern Finland. The acquisition was realized at an enterprise value of approximately SEK 36 million. The acquisition, which is expected to have a marginally positive effect on Cardo’s earnings during 2008, will be included in Cardo’s division Pulp & Paper Solutions.

REPURCHASE OF SHARES
At the 2008 Annual General Meeting of Cardo AB, a resolution was passed authorizing the Board of Directors to acquire up to so many own shares before the next Annual General Meeting that the Company’s holding at no time exceeds 10% of all shares in the Company. The purpose of the repurchase is to give the Board the opportunity to adjust the capital structure of the Company during the period until the next Annual General Meeting. During the second quarter, Cardo repurchased 1.5 million shares, equivalent to 5 percent of the number of outstanding shares. The equity in the parent company and the Group has therewith decreased by SEK 223 million.

INVITATION TO FINANCIAL HEARINGS TODAY, AUGUST 13, AT 10.00 A.M.
Cardo’s President and CEO Peter Aru will comment on the interim report at a conference today at Operaterrassen in Stockholm at 10.00 a.m. Notification of intention to attend may be made at www.financialhearings.com or via e-mail to hearings@financialhearings.com. It will also be possible to take part and ask questions via telephone number +46 (0)8 53 526 439. The conference may also be followed via a webcast at www.cardo.com or www.financialhearings.com, where you will also be able to listen and see the presentation slides afterwards.
The conference will be held in Swedish. Slides in English will be available at www.cardo.com


Calendar 2008/2009
November 12 - Interim Report January-September
February 5 2009 - Report on Operations 2008
May 8 2009 - Interim Report January–March 2009
August 13 2009 - Interim Report January–June 2009
November 13 2009 - Interim Report January–September 2009