Monthly Report January 1999

Monthly report as of January 1999 HL Display AB (publ) * Net turnover for January up by 15.9% to SEK 46.2 m (39.9) compared to 1998 * Operating profit amounted to SEK -0.3 m (4.6) which is in line with expectations * Profit before tax declined to a loss of SEK -4.5 m (+4.3) compared to corresponding month 1998, this includes a translation loss on consolidation of SEK 3.5 m * HL Group has acquired RIM Fabrications Ltd and Leijdekker Display BV [REMOVED GRAPHICS] January in brief The consolidated turnover for January increased by 15.9 per cent to SEK 46.2 m (39.9). The growth rate is lower than normal due to a weaker demand during the end of 1998 and the beginning of this year. The inflow of order is expected to reach normal levels by the end of first quarter 1999. The marketing activities of Shop Systems, the new business concept, have been held back due to production and logistic problems within this area. This decision has been taken in order not to jeopardise the high quality standards of HL and the confidence of our customers. Operating profit of January amounted to a loss of SEK 0.3 m (+4.6). This is mainly explained by the low capacity utilisation but is in line with expectations. The strengthening of the Swedish Krona has affected profit by a translation loss on consolidation of SEK 3.5 m (-0.1). Profit before tax amounted to a loss of SEK 4.5 m (+4.3). Investments in fixed assets amounted to SEK 9.9 m (2.9). These mainly pertain to additional investment in shares in subsidiaries of SEK 3.8 m. The production capacity of the jointly owned Trion HL Inc has been increased through a new production line. The HL Display Group has acquired the British company RIM Fabrications Ltd. The turnover for RIM of 1998 was SEK 16.0 m. The HL Display Group has acquired the operations of the Dutch company Leijdekkers Display BV. The effect of these acquisitions on consolidated profit is not material for 1999. Stockholm 18/02/99 Anders Remius Managing Director HL Display shall increase customer profitability by offering the retail trade and its suppliers cost efficient, customer-adapted display systems. Production is to be flexible and delivery times are to be kept short. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/18/19990218BIT00280/bit0001.doc http://www.bit.se/bitonline/1999/02/18/19990218BIT00280/bit0002.pdf