INTERIM REPORT, JANUARY - JUNE 2007

Highlights
(For table see attached file)

· Sustained robust volume growth. Volumes grew by 5%, which is better than the market.
· Höganäs’ North American sales volumes continued to expand in the period despite negative market progress.
· Operating income adjusted for one-off items and earnings from currency forward contracts was MSEK 341, a 15% increase year on year.
· Cash flow from operating activities was MSEK 88, and adversely affected by higher metal prices, particularly nickel.

(For complete report see attached file)