Interim Report (1 January 30 June 2002)

Interim Report (1 January - 30 June 2002) · Sales totalled SEK 392 million (545 m) · Loss before tax of SEK -12 million (-81 m) · EPS after tax SEK -0,86 (-8.04) · Kept marketshares on a lacklustre market · Continued restructuring and market-orientation Sales and results DORO, listed on Stockholmbörsen's O-list, recorded sales of SEK 392 million (545 m) for the first half of 2002, a fall of 28% compared with the previous year. Excluding the disposed of telephone exchange activities; sales fell by 26%. Margins have improved thanks to lower guarantee costs, better stock control and new products. Overheads have fallen thanks to lower personnel and infrastructure costs. Results were charged in the first half of the year with SEK 7 million mainly for costs of organisational changes and obsolescence of broadband stock. Reduced borrowing and reduced loans in foreign currency to lower exchange rates have cut financial costs. The Group's loss before tax was SEK -12 million (-81 m). Sales during Q2 stood at SEK 176 million (266 m) and the loss before tax was SEK -3 million (-55 m). Market and range The sales trends have mainly followed the development in the sectors of home electronics and telecom. The lacklustre demand from 2001 continues. DORO has around the same market share as last year. The demands for DORO's corded phones exceed expectations. The position on the market is reinforced due to a very complete range for consumers as for business. The new cordless range for analogue phones (CT1) has been well received on the market and a new program (CT0) will be launched during the second part of the year in France, UK and Australia. DOROs small and designed DECT (digital) telephones have been a very appreciated productline. The DECT program has now been increased with the 5000-series, which is a phones with good functions in normal size and with DOROs recognised design. The market for cordless broadband products continued to be weak during the first six months of the year but improved in the end of the period. The authority for the licensed wireless broadband Sweden (PTS) will distribute two licenses per county to different operators. To be able increasing the broadband capacity in the rural areas the use of wireless broadband is estimated to increase considerably. Restructuring Restructuring is proceeding according to plan and the headcount has been reduced to 200 (285). DORO's overheads have been cut by over 20% compared to the same period last year. The more stringent quality assurance routines continue to give planned effects and are providing considerably lower quality costs for new products and creating greater customer satisfaction. Several agreements with larger suppliers have been established by the supply organisation for development and production of new products. Improved instruments for forecast and a larger co-ordination of the ranges in Europe are other measures under implementation for improving product supply and flexibility. Fully implemented the measures will create a more rational purchase and logistics with lower capital employed in stock. The Nordic structure continues to be co-ordinated. The Danish logistic and service is now handled of the organisation in Sweden. The intention is to integrate the other Nordic countries with one management and administration with sales and marketing remaining in each country. DORO is putting more efforts in a clear and more target groups directed market communication for further reinforcing brand and its identity. Inside the wireless broadband products sector a considerable restructuring has taken place with a focus on less products and fewer markets. Less personnel and administration have reduced the overheads. The Swedish activity is moving to DOROs offices in Lund during Q3. Balance sheet continues to decline The consolidated balance sheet total has declined by SEK 58 million to SEK 339 million (545) since the start of the financial year. Investments totalled SEK 3 million (4 m). Goodwill stood at SEK 35 million (65 m). Adjustment of goodwill has been done after final calculations of variable purchase price for acquisition of subsidiary. In connection with this adjustment the depreciation of goodwill has also changed. Deferred taxes has been adjusted as well. The Group's net debt (interest bearing liabilities less cash) has increased with SEK 46 million to SEK 81 million (35 m). The debt/equity ratio increased from 0.72 at the start of the year to 2,55 (2,92). Unutilised credit lines amounted to about SEK 45 million at the end of Q2. Stock has marginally risen by SEK 9 million to SEK 133 million (264 m) from very low levels. The cash flow from current activities was down in Q2 by SEK -45 million (+4) and for the first six months stood at SEK - 44 million (-40 m). The main reason for the negative cash flow is higher working capital, payouts for the restructuring and seasonable changes. Outlook for the coming year DORO stands by the assessment made in its Annual Report that 2002 will show a positive trend and produce significantly better results. Demand in the telecom sector is estimated to continue to be weak for the remainder of the year. DORO is hedging 50 % of the coming six months expected flow of USD. The today considerably lower exchange rates will have an impact on the margins first at the end of Q4. Considering the market change the conditions for having a positive full-year result is estimated to be reduced. Parent company The parent company's net sales totalled SEK 20 million (11 m). The loss before tax was SEK 17 million (-22 m). Dividends have been received from subsidiaries. Write-down of shares in subsidiaries has been made. Future reports The Board has decided on the following dates for 2002's quarterly reports: 22 October and 30 January 2003. The quarterly reports will be available at DORO's website: www.DORO.com. This Financial Statement has been drawn up according to the same accounting principles as the last Annual Report and has not been subject to examination by DORO's auditors. For further information, please contact: Gunnar Åkerblom, CEO, +46 46 280 50 61 or Ingvar Karlsson, Deputy CEO, +46 46 280 50 62 Lund, Sweden, 2 August 2002 The Board of Directors, DORO AB ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/08/02/20020802BIT00290/wkr0001.doc The full report http://www.waymaker.net/bitonline/2002/08/02/20020802BIT00290/wkr0002.pdf The full report

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Doro markets telecommunications products under the trademark Doro. Source: Delphi