Semi-annual report January 1-June 30 1998

Semi-annual report January 1-June 30 1998 Strong first six months for Micronic Laser Systems Micronic Laser Systems' sales increased by 43 per cent from MSEK 98 to MSEK 141, mainly due to volume growth. Profit after financial items increased by MSEK 18, and amounted to MSEK 36. The order book at June 30 was worth MSEK 159. "We turned a nice profit during the period, but the order intake is still weak due to the financial crisis in Asia," says Staffan Junel, President & CEO of Micronic. Our customers in Korea, Japan and Taiwan, which are important markets for the company, have been postponing their investment decisions. Order intake totaled MSEK 71 and Micronic has maintained its market position." The global market for flat panel displays is not as vulnerable to the turbulence in Asia, and this is expected to lead to continued firm demand for laser writers for active LCD displays. Most of the manufacturers in this important market segment for Micronic are located in Japan. In the semiconductor segment three systems have been shipped. These systems more than satisfy the specified performance targets. Micronic is experiencing a growing customer interest in advanced laser writers in this segment. The Group's organisation was strengthened by the recruitment of 29 new employees during the period, mainly for technical departments. In August, the work force totaled 145 people, an increase of 36 since last August. A decision was made in February to considerably expand the important clean room capacity. The construction work in progress will be completed in September. This investment will enable the company to work parallel on customer deliveries, development and customer demonstrations for the various product programs. Micronic is now planning, in co-operation with D. Carnegie AB, a flotation on the Stockholm Stock Exchange The board has decided to wait until the current market situation has stabilized before moving ahead with the flotation on the Stockholm Stock Exchange. At June 30, the company had approximately 125 shareholders. Extract from the Interim Report MSEK 1998 1997 Jan-June Jan-June Net sales 141.2 98.6 Operating profit 36.6 18.5 Profit after financial 36.1 18.1 items Profit margin 26% 18% Equity, MSEK 115 60 Equity/total asset 57% 40% Earnings per share after 2.05 1.03 standard tax, SEK A complete report can be ordered as follows: Fax: +46 8 638 52 90 E-post: info@micronic.se The report is also available at Micronic's web-site: www.micronic.se Micronic Laser Systems in brief Micronic Laser Systems is a Swedish high-tech company engaged in the development, manufacturing and marketing of a series of extremely accurate laser writers for the production of photomasks. The technology involved is known as microlithography. Micronic's systems are used by the world's leading electronics companies in the manufacturing of television and computer displays, semiconductor circuits and semiconductor packaging components. Micronic is an expanding company. In September 1997 Micronic was awarded the prestigious "Sweden - Japan Trade Award 1996" by The Swedish Trade Council. The prize is presented to companies whose activities and operations have shown the most significant business improvements and outstanding performance in the extremely competitive Japanese market. Micronic is situated in Täby, north of Stockholm and has at present three service offices: Japan, Taiwan and the US.