Micronic reports on third quarter 2007

Taby, Sweden, October 18, 2007 - Micronic Laser Systems AB (listed on the OMX Stockholm Exchange, Nordic list, Mid cap, Information Technology: MICR) today presented the Group’s Interim Report for January 1– September 30, 2007. The information in this press release is of such nature that it must be published by Micronic in accordance with the Act on Stock Exchange and Clearing Operations and/or the Act on Trading in Financial Instruments. The information was submitted for publication on October 18, 8:00 a.m.

 Order intake for the first nine months was SEK 498 (544) million, of which SEK 402 (113) million was booked in the third quarter

 Net sales for the first nine months are reported at SEK 298 (939) million, of which the third quarter accounted for SEK 178 (98) million

 Operating profit for the first nine months was SEK -248 (114) million, including SEK -34 (-112) million for the third quarter

 Operating profit adjusted for capitalization and amortization of development costs totaled SEK -175 (189) million for the first nine months and SEK -9 (-85) million for the third quarter

 Profit after tax was SEK -177 (84) million, equal to SEK -4.53 (2.13) per share, before and after dilution. Profit after tax for the third quarter was SEK -24 (-79) million, equal to SEK -0.62 (-2.01) per share

 The order backlog at the end of the third quarter, consisting only of systems, was SEK 420 (425) million.

“The third quarter was characterized by a robust order intake of SEK 402 million, which is the third best quarterly figure in the company’s history. The rising complexity of our most advanced laser pattern generators for the display market is leading to a substantial price increase. To a certain extent our gross margin for the quarter, which amounted to 47 percent, was charged with initial costs related to shipment of two new systems. The balance sheet remains strong and it is also worth noting that we recorded a SEK 58 million increase in customer prepayments during the third quarter,” says Sven Lofquist, President and CEO of Micronic Laser Systems AB.

“The display industry is undergoing gradual recovery. However, we do not expect order intake for the fourth quarter to reach the same level as in the third. We are now in the process of launching the new generation of display pattern generators, Micronic Prexision, which enables production of advanced photomasks, including masks for next generation display manufacturing, known as G10. We expect Prexision to provide added value for our customers in several respects. In the third quarter we delivered the first pattern generator in the Prexision series. This version of pattern generator is designed for high-quality photomasks up to and including G8. We also delivered the first FPS5100 system for advanced electronic packaging.”

“The semiconductor market is expected to show some growth in the second half of 2007. Our expectation is that demand for pattern generators for volume production will revive in the second half of the year.”

“Overall, we see potential during the current year to invoice orders received in the fourth quarter,” concludes Sven Lofquist.

Company contacts:
Sven Lofquist
President & CEO
+46 8 638 52 00
sven.lofquist@micronic.se

Carl-Johan Blomberg
CFO
+46 8 638 52 00
carl-johan.blomberg@micronic.se