Micronic’s strong display market continues

Taby, Sweden, July 8, 2005 - Micronic Laser Systems AB (Stockholm Exchange’s "Attract 40 list": MICR) today presented the Group’s Interim Report for January 1 - June 30, 2005.

 Order intake during the first six months in 2005 was SEK 557 (388) million, of which the second quarter order intake was SEK 329 (170) million.  Net sales during the first six months amounted to SEK 390 (241) million, of which the second quarter sales was SEK 160 (144) million.  Operating result for the first six months amounted to SEK -46 (-26) million, of which the second quarter operating result was SEK -55 (6) million.  Operating result adjusted for net capitalization on development costs during the first six months amounted to SEK 18 (-95) million, of which SEK -23 (-33) million relates to the second quarter.  The reporting period net result was SEK -36 (-20) million, equal to SEK -0.94 (-0.51) per share. The second quarter net result amounted to SEK -40 (4) million, equivalent to SEK -1.04 (0.11) per share.  The order backlog at the end of the reporting period was SEK 1,039 (925) million. "The period’s order intake was well in line with expectations and reflects the strong market we are seeing for our products in the display industry. We have now started to book systems for shipment during 2006. Another highpoint was the agreement signed with a leading global chip maker in Asia to collaborate in application development based on our Sigma product, a significant advance in the semiconductor market that is not visible in our order intake," says Sven Löfquist, President and CEO of Micronic Laser Systems. "Net sales rose 62 percent during the period to SEK 390 million, in line with our expectation. We have also shipped a tool to be recognized after final customer approval during the second half of 2005. Of the reported SEK 161 million in development costs, SEK 65 million consists of amortization. Excluding this amortization, the company reports an operating profit of SEK 18 million. We assess development expenditure for the full year to fall below SEK 200 million," states Sven Löfquist. “Gross margin was down on the previous quarter, mainly due to the product mix, but is expected to recover in the second half of the year. All in all I am pleased to report that we have succeeded in meeting our set targets. Looking forward, we expect net sales to pass the SEK 1 billion mark and anticipate a continued strong order intake for the full year in excess of the 2004 level," concludes Sven Löfquist. Company contact: Sven Lofquist President & CEO +46 8 638 52 00 sven.lofquist@micronic.se Agency contact: Luz Rodriguez The Loomis Group, Inc. +33 1 58 18 59 30 rodriguezl@loomisgroup.com