INTERIM REPORT JANUARY 1 – JUNE 30, 2005

Earnings and return trends remain favorable  Net sales rose 5% to SEK 1,823 M (1,744). Adjusted for currency effects and acquisitions, net sales increased by 3% compared with the year-earlier period.  Operating income before amortization of intangible fixed assets (EBITA) rose by 14% to SEK 148 M (130). Income after financial items increased by 16% to SEK 141 M (122).  Income after tax amounted to SEK 102 M (86), up 19%.  The return on operating capital for the most recent 12-month period increased to 25% (24).  On June 27, Indutrade acquired the Dutch technology group Hanwel, which reported sales of SEK 171 M and healthy profitability in its most recent fiscal year.  The preparations required ahead of Indutrade’s initial listing on the Stockholm Stock Exchange’s O List during the second half of the year continue as planned.

Indutrade in brief Indutrade markets and sells components, systems and services with a high-tech content within selected niches. The Group creates value for its customers by structuring the value chain and increasing the efficiency of its customers’ use of technological components and systems. For the Group’s suppliers, value is created through the offering of an efficient sales organization with solidly developed customer relations. The Group is divided into four business areas, Engineering & Equipment, Flow Technology, Industrial Components and Special Products.