INTERIM REPORT OBDUCAT AB (PUBL.) JANUARY – MARCH 2006

Industrial breakthrough for Obducat

· Sales for the quarter amounted to SEK 11,3 million (11,6)

· Pre-tax profit was – 7,5 million (-8,1) and earnings per share before dilution were SEK -0,03 (-0,04)

· Industrial breakthrough in the Obducat NIL technology at mass production

· Strong order intake totalling SEK 20 million

· Three new patents were granted during the quarter – a total of 30 inventions have now been patented in at least one country or region, and a further 13 patent applications have been filed

Sales/Market (All amounts below in SEK 000 unless otherwise stated)

Sales for Q1 of 2006 were 11,332 (11,597).

Backlog at the end of the reporting period was SEK 12,1 million. The order intake during the reporting period amounted to SEK 19,7 million.

A customer in the US has placed an order for a NIL machine (Nano Imprint Lithography) to be used in mass production. Using the NIL technology provided by Obducat, the customer is producing optical components forming an integral part of a consumer electronics product supplied by Samsung, which will be launched on the market in May 2006. This is a quantum leap for Obducat’s NIL technology for the purpose of industrial mass production. The new order entitles the customer to exercise his option to exchange the purchased equipment for a fully automated industrial NIL machine.

Compared with two years ago when Obducat had 4-5 industrial customer projects, the Company now has some 20 projects in different stages of the decision-making and purchasing processes where the customers aim to start industrial mass production of different types of components.

The order intake in Q1 is in line with the Company’s expectations.

The gross margin has during the reporting period been affected by a product mix containing a comparatively high portion of NIL, which explains the proportionately high gross margin level of 60 percent compared with 44 percent for the first quarter of 2005.

It is believed that Obducat’s market position will remain very strong, especially in the industrial sector, and that the market potential, and as such also the development potential, will remain unchanged but be somewhat delayed in comparison with the statement in the prospectus of 2005.

Research and Development

Research and development is one of the foundation stones of Obducat. The Company has therefore chosen to collaborate with partners in order too further develop systems, processes and products in the nano technology sphere. The purpose of increased external collaboration is to enable Obducat to pursue more cost effective development, minimise risks and reduce time. This involves continuous contacts and co-operation with research teams at various universities and with industrial partners worldwide. Such work is increasingly being focused on projects conducted together with both present and potential customers. The NIL and EBR technologies (Electron Beam Recorder) have been prioritised for several years, with particular emphasis on process development as this particular part is estimated to constitute a possible determining competitive factor.

Research and development costs for the quarter totalled 4,417 (4,206) (excluding depreciation according to plan relating to R&D), in addition to which 3,758 (3,776) were activated as capitalised development expenditure and patents. Total R&D costs increased by 1 percent (20) compared with the corresponding period the previous year, reflecting the Company’s planned and increased focus on research and development in close co-operation with potential customers.

Patents

During the first quarter Obducat was granted a patent in Europe and China covering the Soft Press function which offers distinct performance advantages through its unique function, and consequently cost-effective benefits compared with competing technologies. Since the close of the quarter under review, the Company has been granted a patent in the US covering technology for stamper manufacturing.

When new inventions have a possible commercial potential, patent applications are filed and subsequently monitored with regard to intellectual property rights. At the end of the reporting period patents had been granted to 30 inventions, and a further 13 applications for patent protection of inventions had been filed.

Sales and Result

The Group’s sales in Q1 amounted to 11,332 (11,597) and generated a gross profit of 6,777 (5,082), corresponding to a gross margin of 60 per cent (44).

Operating loss for the period amounted to –6,327 (–6,852) and was charged with depreciation according to plan of 3,657 (3,282).

First quarter income after taxes amounted to – 7,510 (–8,064).

Cash flow from operating activities during the quarter totalled –6,817 (–6,422).

Investments in the first quarter amounted to 14,490 (4,423), of which 25% (85%) is attributable to intangible fixed assets in the form of capitalised development expenditure and patents.

Financing and Liquidity

At the end of the period shareholders’ equity stood at 42,973 compared with 52,249 at the beginning of the year.

As a consequence of the required conversion of the debenture loan 04/07, the shares issued in the fourth quarter of 2005 were registered during the period under review, as well as the required new subscription of shares supported by options during the same period. In this respect a total of 535 new series B shares have been issued.

At the end of the reporting period the required conversion and new subscription for shares supported by options led to a further 310,338 new series B shares being issued, and the new subscription of shares supported by options relating to the employee programme 2003/2006 resulted in the issuance of a further 26,640 new series B shares, which were registered at the end of the reporting period.

Liquid assets at the end of the first quarter stood at 35,025 compared with 48,485 at the start of the year. Equity/assets ratio on March 31 was 34 per cent compared with 43 per cent at the beginning of the year.

Depending on whether the Company’s sales will increase beyond plan, further working capital may be required in 2006.

At the Annual General Meeting on June 22, 2005 it was unanimously resolved to authorise the board of directors to, prior to the annual general meeting 2006, decide to issue a maximum of 80 million new series B shares at a minimum price of SEK 1,12.

Investments

The Group’s net investments for the period were 14,490 (4,423), of which 10,662 pertains to the short-term acquisition of a property where Obducat CamScan Ltd operates. The balance of 3,828 refers to 98 per cent (85) of intangible fixed assets in the form of capitalised development expenditure – balanced in accordance with IAS 38 (International Accounting Standards) – and patents. Any additional investments refer primarily to EBR equipment.

Organisation

At the end of the period Obducat had a total of 45 (46) employees, of which 6 (6) women.

External factors

The Company believes that currency and interest fluctuations will continue to have marginal impact on the business. The price of certain NIL related products have during the period indicated a downward trend in the university/institutional market segment.

Parent Company

During the period no external sales were generated in the Parent Company. Income before taxes amounted to –5,699 (–5,680). The Parent Company’s net investments amounted to 894 (536), largely comprising patents and development costs carried forward in accordance with IAS 38.

Accounting Principles

Effective January 1, 2005 Obducat reports its consolidated accounting in compliance with the accounting principles of the International Financial Reporting Standards (IFRS) The transition to IFRS meant that depreciations related to goodwill ceased and this was the only impact on shareholders’ equity.

This report has been prepared in accordance with IAS 34, Interim Financial Reporting. The accounting principles are in accordance with published Interim Reports and Year-end Report for 2005. With regard to accounting by segments – which is governed by IAS 14 – the Company has, as previously reported, determined that Obducat’s business is considered to encompass one business segment only, namely that of systems solutions for the production of advanced micro and nano structures. For this reason the Company gives no further information in this report relating to IAS 14, referring instead to the profit and loss statement and balance sheet for the primary segment.

The Obducat Share and Ownership Structure

On March 31, 2006 Obducat had 15,927 shareholders. On the same date the total number of shares amounted to 264,538,158, of which 5,370,288 series A shares (each entitling to ten votes) and the remainder series B shares (each entitling to one vote). On March 31, 2006, as mentioned above, the required but then not registered conversion and new subscription for shares supported by options corresponding to a total of 337,028 new series B shares have been included in the summary below. During the period a total of approximately 142,1 million series B shares were traded, equivalent to an average amount of about 2,25 million shares.

The most recent ownership structure on March 31, 2006 (including the above-mentioned additional but on the closing day not yet registered B shares) was as follows:

(For table see attached file)

During the reporting period, and until the publication of this report, holders of a total of 66,500 series A shares have required re-stamping of such shares to series B shares.

Outlook

Obducat provides consumer electronics producers with key technologies that enable integration of nano technology into commercial electronic products. The demand has increased significantly. More customers have more exact plans for starting production based on the NIL technology. NIL technology is also an absolute prerequisite in order to produce certain projected types of components in the future, especially in the opto electronics area.

Obducat notes that the first industrial consumer product based on NIL is now being mass-produced by one of its customers. This means a industrial breakthrough in the Obducat NIL technology.

In line with previous reports, several of Obducat’s potential customers have clearly stated their intention to change over to NIL with regard to mass production. In addition Obducat has more ongoing customer connections than ever before, both with the aim and potential of leading to mass production of various components for the consumer electronics industry. These activities are in different stages of progress depending on the length of the customer connections – some are early development projects and others are in the final evaluation phase.

The delayed launch of Blu-ray might cause a certain time displacement with regard to one of the projects involving optic storage. At the same time the Blu-ray format delay could result in intensified activities in the projects regarding the HD-DVD format.

Obducat will continue to pursue the strategy that has brought the Company to its present forefront position and continues to believe that industrialisation may be expected to take place during the next two years within several of the application areas on which Obducat is focused.

Future reports etc.

Annual General Meeting June 21

Interim Report 2 (January – June) August 11

Interim Report 3 (January – September) October 27

Malmö, April 28, 2006

The Board of Directors of Obducat AB (publ)

Corporate identity number 556378-5632

On behalf of the Board of Directors

Patrik Lundström

Chief Executive Officer

For further information, please contact:

Patrik Lundström, CEO, + 46 40 36 21 00 or 703 27 37 38

Henri Bergstrand, Chairman of the Board, + 46 40 36 21 00 or 708 88 72 45

This interim report has not been subject to review by the Company’s authorised public accountant.

(For complete interim report see attached file)