INTERIM REPORT JANUARY - JUNE 2007

SECOND QUARTER

• Order intake rose 7 percent to SEK 1,688 M (1,573), up 1 percent adjusted1.
• Dehumidification continued its strong growth, with high demand for energy-efficient products for commercial premises.
• MCS was adversely affected by very dry weather conditions until the second half of June, when parts of Europe had heavy rain.
• HumiCool continued to develop favorably, but was affected by low demand for pre-coolers for gas turbines compared with the strong second quarter in 2006.
• Net sales increased by 5 percent to SEK 1,524 M (1,456), adjusted1.
• Net earnings totaled SEK 70 M (79).
• Continued improvement of earnings and operating margin within Dehumidification and HumiCool, excluding the newly acquired Sial.
• Weakened earnings caused by dry weather and nonrecurring items of SEK 10 M within the MCS Division, and normal seasonal operating losses within Sial of SEK 10.5 M.
• Cost-reduction program initiated at MCS.
• Earnings per share amounted to SEK 0.95 (1.06).
• Agreement signed to acquire Danish-based Turbovent at the end of June strengthens HumiCool’s position in climate control for the farming industry.


SIX-MONTH PERIOD

• Order intake rose 3 percent to SEK 3,215 M (3,088), adjusted1.
• Net sales increased by 5 percent to SEK 2,928 M (2,841), adjusted1.
• Net earnings totaled SEK 148 M (150).
• Earnings per share amounted to SEK 1.99 (2.02).