KMT Interim Report

1 January 1 – 30 June 2007

• Order intake for the period amounted to SEK 819M (650) – an increase of 26 per cent
• Net sales amounted to SEK 721M (700) – an increase of three per cent
• KMT Ursviken was divested and generated an estimated capital gain of SEK 53M. Write-downs of intangible assets within KMT Precision Grinding amounted to SEK 52M
• The operating result amounted to SEK -27M (40) including the write-downs within KMT Precision Grinding but excluding the capital gain for the divestment of KMT Ursviken
• Profit for the period after tax, including divested operations, is reported at SEK 12M (27)
• Earnings per share including divested operations amounted to SEK 1.18 (2.70)
• After the end of the reporting period, all shares in KMT Real Estate AB have been divested for approximately SEK 138M which will involve a capital gain of more than SEK 100M in the third quarter. As reported earlier, the restructuring programme within KMT Precision Grinding, will involve considerable costs during the third quarter