ROTTNEROS PAYS OFF LOAN EARLY

Following negotiations with bond holders, Rottneros’ bank syndicate under the management of Danske Bank and principal shareholder Nemus Holding, Rottneros has agreed to pay off the entire existing bond loan of SEK 150 million which was issued by Rottneros. Rottneros will pay off SEK 20 million and Nemus Holding will pay the remainder of the loan by paying SEK 20 million to bond holders. Through this transaction Nemus Holding will have a claim on Rottneros of SEK 20 million which constitutes a partial payment for Nemus Holding’s portion of the new share issue planned for the autumn. The effect for Rottneros of today’s transaction will be that SEK 110 million of debt will be written off and reduced, and this will be recorded in the results for the third quarter of 2009.

As previously announced, Rottneros paid an instalment of SEK 125 million on 30 June 2009 on the syndicated bank loan. Thus Rottneros’ total loan debt has now been reduced by a total of SEK 255 million and now amounts to around SEK 450 million.

These measures significantly improve and simplify the conditions for Rottneros to implement the planned new share issue which is at the preparatory stage and which Rottneros and Nemus Holding have committed to. The plan is to convene an extraordinary shareholders’ meeting shortly and at this meeting to propose a new share issue equivalent to around SEK 200 million. To improve the conditions for implementing this new issue, discussions are continuing with the company’s lenders for the purpose of further reducing the company’s debt burden by converting debt to shareholders’ equity. The lenders would thereby become significant shareholders in the company.

For further information, please contact:

Ole Terland, President and Chief Executive Officer, +46 8 590 010 00

This information is such that Rottneros must disclose in accordance with the Swedish Securities Markets Act. The information was submitted for publication on 10 July 2009 at noon CET.