Interim report January-March 2010

Strong start to the year First quarter of 2010 • Net sales rose by 17 percent to SEK 1,098 million (940) • Operating profit (EBITA) rose to SEK 29 million (negative 27) • The operating margin (EBITA) increased to 2.7 percent (negative 2.9) • Adjusted for items affecting comparability, the operating margin (EBITA) was 4.6 percent (negative 2.9) • Earnings after tax rose to SEK 1 million (negative 61) • Cash flow from operating activities was negative in the amount of SEK 218 million (172) • Inwido AB acquired 34 percent of the shares in Inwido Denmark, following which the process of acquiring the outstanding minority interests in Inwido's subsidiaries is largely complete

CEO Håkan Jeppsson comments: “Inwido has begun 2010 by reporting healthy growth and favourable earnings despite the unusually cold and snowy winter, which was initially a challenge. The positive trend in the consumer market from the end of 2009 has continued and, in the first quarter, order bookings in the industry market also improved. Sales for the quarter, amounting to SEK 1,098 million, correspond to 17 percent growth. Consolidated operating profit was SEK 50 million, an improvement of SEK 77 million. Inwido's Nordic markets continue to be those that perform well while the trend is weaker in the other European countries where we operate, particularly Poland. To streamline our operations, we have continued the restructuring process in Poland and have divested Inwido Academy. These measures impacted operating profit negatively by SEK 21 million, but were natural and necessary initiatives in our ambition to become Europe's leading supplier of wood-based windows and doors. Optimism is now rising among households and continued low interest rates and government subsidies are likely having a positive effect on Inwido. At the same time, the market is pervaded by continued uncertainty, intense price competition and price-conscious customers. Given these market conditions, the past quarter shows that our strategic focus on an increased share of consumer sales is functioning well. With our strengthened balance sheet, we will, over the remainder of 2010, develop our growth ventures while continuing to focus on developing a closer relationship with the end users of our products.” Håkan Jeppsson President and CEO

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