Höganäs: Höganäs Interim report January - June 2009

Continued very satisfactory cash flow and recovery on a weak market CEO Alrik Danielsson comments on second quarter: - After a very weak period around year-end, the market has gradually improved through the first half-year, although demand remains unstable and progress is uncertain. We are pleased to have been able to generate positive income in the second quarter despite sales volumes being 34% lower than in the corresponding period of 2008, and the fact that we have continued to be able to generate significant positive cash flow. We can conclude that we are benefiting from our strong positioning in Asia in the market’s current recovery phase.

Second quarter 2009 (compared to corresponding period of previous year): • Net sales were MSEK 1,098 (1,592) in the quarter, down 31% year on year. Sales volumes were 34% lower. Demand remained weak on most markets, although better than in the first quarter. Continued inventory reductions through the value chain, especially in North America and Europe. • Operating income was MSEK 54 (232) and income after tax was MSEK 37 (170). The lower income was caused by reduced sales volumes, although offset partly by cost-cutting, price increases, and sales of CO2 emission rights. Sales of emission rights generated revenue of MSEK 40 (33). • Earnings per share for the quarter were SEK 1.05 (4.91). • Cash flow from operating activities was MSEK 297 (134), mainly a result of the measures taken to reduce working capital and to some extent postponing investments in fixed capital. • The net debt/equity ratio multiple has been reduced from 0.73 to 0.66 during the quarter. First half 2009 (compared to corresponding period of previous year): • Net sales were MSEK 2,014 (3,175) in the period, down 37% year on year. Sales volumes were 42% lower. • Operating income was a deficit of MSEK -57 (428) and the loss after tax was MSEK-53 (315). The profit deterioration was principally a result of lower sales volumes. • Earnings per share for the period were SEK -1.53 (9.06). • Cash flow from operating activities was MSEK 439 (331). • The outlook has changed somewhat. The market remains weak, but the demand situation has improved since year-end. However, the rate of recovery still remains highly uncertain. Höganäs, Sweden, 17 July 2009 Höganäs AB (publ) Streamed press conference Alrik Danielson, CEO, and Sven Lindskog, CFO, will present the Interim Report in a conference call at 10:30 a.m. on 17 July 2009. The press conference will be streamed at: www.hoganas.com/Investor Relations/Conference Call. It is open to journalists, analysts and investors. Participants are welcome to call on +44 (0)207 162 0125. The presentation is available at www.hoganas.com. NB: This information is mandatory for Höganäs to publish pursuant to the Swedish Securities Markets Act. The information was submitted for publication at 9 a.m. on 17 July 2009.