INTERIM REPORT OBDUCAT AB (PUBL) JANUARY - MARCH 2009

Obducat executes its first fully automated production machine

First quarter

• First quarter sales amounted to SEK 15.4 M (12.1)

• Profits before taxes in Q1 were SEK –11.7 M (–9.4) and earnings per share before dilution were SEK –0.03 (–0.03)

• Gross margin was 46 (48) per cent

• Cash flow before financing activities was SEK –15.8 M (–9.1)

• Backlog of orders at the end of Q1 was SEK 51.0 M (9.8)

(All amounts below in SEK 000 unless otherwise stated)

Significant events after the close of the period

As a result of changes in the technical requirements specification for the ordered Sindre HDD HVM system, delivery will not take place in 2009 as previously communicated. As a consequence of the delay, combined with a lower order intake, the Company’s costs will be adjusted.

Sales/Market – first quarter

First quarter order intake was SEK 3.9 M (8.3), providing a total backlog of orders of SEK 51.0 M (9.8) at the close of the period.

The order intake during the first quarter was lower than expected, to a great extent resulting from customers postponing their purchase decisions as a direct consequence of the financial crisis. Obducat believes that the long-term potential for its NIL products remains unchanged, on the one hand based on the fundamental driving force of the technology changes already initiated, and on the other hand because of the very positive development of the quotation backlog in the first quarter. A delay in the placement of orders is to be expected, however positive indications from the electronics industry indicate that the beginning of recovery may be expected during the first quarter of 2009.

Sales and result – first quarter

Group sales for the quarter amounted to 15.427 (12.108), the biggest sales ever in the first quarter in the history of Obducat. The Group generated a gross profit of 7.106 (5.757), corresponding to a gross margin of 46 (48) per cent.

Operating loss for the period was –10.206 (–9.460), which was charged with depreciation according to plan of –2,465 (–3.906). The Group’s depreciation methods remain unchanged however a revaluation of the economic life for development of machine platforms has been made (see below).

First quarter profits after taxes were –11.709 (–9.401), where the gross difference compared with the same quarter the previous year is largely attributable to higher operating costs, higher financial costs in connection with the convertible loan in 2008, and a positive currency effect of foreign business resulting from translation of currencies to SEK.

Financing and liquidity – first quarter

Equity at the close of the quarter was 46.482 compared with 57.482 at the start of the year. Equity/assets ratio on 31 March was 34%, compared with 38% at the beginning of the year. Interest-bearing liabilities are composed mostly of a convertible debenture loan, property credits and lease related debts.

Liquid assets, including current investment of surplus liquidity in an interest-based money market instrument, amounted at the end of the period to 32.483 compared with 47.861 at the beginning of the year. With regard to liquidity, the first quarter was charged with investments in development and increased work in progress costs related to production for orders to be delivered in the second quarter of 2009.

Cash flow from current operations amounted in Q1 to –10.513 (–6.907). The total cash flow after investment activities for the period was –15.857 (–9.113).

Investments – first quarter

The Group’s net investments amounted to 5.344 (2.206). Investments consist mostly of intangible assets in the form of capitalised expenditure for development and patents, capitalised in compliance with IAS 38 (International Accounting Standards).

Research and development – first quarter

Sales for the quarter were charged with costs for research and development (excluding R&D related depreciation according to plan) totalling 8.289 (5.335). Investments in the form of capitalised expenditure for development and patents were 5.116 (2.025).

Total research and development efforts during the first quarter increased compared with the same period last year owing to the increased pace of development in LED and HDD.

Patents

Robust patent protection is of great importance for Obducat’s business. The purpose of patents is to create exclusiveness, which is an important part of providing future sources of income.

At the time of submitting this report, Obducat’s patent portfolio totalled 262 active patent applications pertaining to a total of 48 inventions. The number of granted patents amounted to 146.

Transactions with closely associated persons

No transactions with closely associated persons took place in the first quarter of 2009.

Organisation

At the end of the period the Group had a total of 72 (53) full time employees, of which 9 (8) women. Obducat will continue to actively adapt the organisation to the prevailing market conditions.

External factors

Seeing that in all situations possible outstanding currency flows are hedged to minimise risks, Obducat is of the opinion that currency fluctuations will only impact the Company to a minor degree.

The Obducat share and Ownership Structure

On 31 March 2009 the number of shareholders was 15.188. On the same day the total number of shares amounted to 335.954.523, of which 6.205.294 series A shares (each representing ten cotes), and the remainder series B shares (each representing one vote). In Q1 an approximate total of about 27.1 (48.2) million B shares were traded, equivalent to an average volume per trading day of just over 0.4 (0.8) million shares.

(For table, see attached file)

Risks and risk factors when compiling this interim report

The Group’s risk exposure is outlined in the Annual Report 2008 (pages 51-52). This risk exposure is not subject to any general changes.

Outlook

The basic driving forces behind the demand for Obducat’s products are expected to continue in the long term and Obducat has a strong market position to develop further. Obducat’s customers aim to continue expanding the production capacity and preparations are under way. In the short term the uncertainty is primarily about when the customers are abele to execute their investment plans, which, above all, are affected by their financing opportunities as well as the demand scenario.

In accordance with the agreement pertaining to the Sindre 400 order, a factory test is planned during the month of May.

Obducat continues to focus on creating long-term customer connections, thus henceforth prioritising evaluations leading to industrial orders. The Company will continue to conduct focused development projects speedily in order to secure its market-leading position.

Review

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

Future reports, Annual General Meeting, contacts, etc

Interim Report Q2 2009 (January – June) 24 July 2009

Interim Report Q3 2009 (January – September) 23 October 2009

Year-end report 2009 (January – December) 12 February 2010

The Annual General Meeting of Obducat AB (publ) will be held on 18 June 2009. Venue and time will be notified at a later date.

For further information, please contact:

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

Henri Bergstrand, Chairman of the Board, + 46 4036 21 00 or + 46 708 88 72 45

(For full report, including tables, see attached file)