Strengthened market positions and a continued high degree of innovation

• KMT’s order intake for the second quarter of 2005 increased to SEK 474M (313), an increase of 39 per cent for comparable units • Gross profit for the second quarter improved to SEK 101M (87) due to higher volumes • During September, KMT will launch a new revolutionary machine platform for precision grinding

”The second quarter was characterised by strong order intake. The backlog at the end of June was 38 per cent higher than in the previous year. All product areas improved their market positions, not least Metal Working which won its largest order ever,” says Lars Bergström, CEO of KMT. The strong demand trend is a result of KMT’s long-term and close customer relationships and a high degree of innovation. KMT has developed a new revolutionary machine platform for precision grinding – the Nano Grinder. It will be rolled out and exhibited for the first time at the EMO Fair in Hanover on 14 September. The new machine will be marketed by KMT’s subsidiaries, Lidköping and UVA. ”Nano Grinder is a revolutionary innovation from KMT. Thanks to its compact construction, productivity can be increased by up to 50 per cent compared with a traditional machine construction. As from September, we will be able to offer our customers the benefits of this leading edge technology,” comments Lars Bergström. KMT Group KMT is an international group which provides advanced products, system solutions and a comprehensive aftermarket offer mainly to customers within the engineering industry. Operations are carried out in three product areas: Waterjet Cutting, Precision Grinding and Sheet Metal Working. KMT has operations in 10 countries and approximately 700 staff. For further information, please contact: Lars Bergström, CEO, Karolin Machine Tool AB Tel: +46 8-594 211 50 or via e-mail: lars.bergstrom@kmt.se