Interim Report for January - June 2004

Sardus January-June 2004: Sales up by four per cent. Full-year earnings forecast unchanged

Sardus' turnover for the first half-year amounted to MSEK 852 (818), an increase of 4 per cent. The growth in sales is largely attributable to Gourmet Service, which was acquired in October 2003 and contributed MSEK 44 to the growth in sales. Sardus’ pre-tax profit for the first half of the year amounted to MSEK 34 (36). The forecast for 2004 as a whole remains unchanged, which means that the result is expected to be broadly the same as in 2003 (MSEK 110). Developments at the Swedish units remained stable with sales and earnings on a par with last year, even though turnover in the convenience goods trade was weak during the first half of the year. Numerous budget-price outlets opened during the period, and private label business accounted for a higher share of sales. 3-Stjernet, Sardus’ Danish unit, experienced a poorer trend in sales and earnings on account of reduced export sales and stiffer competition on its domestic market, mainly from German low-price competitors. "It is encouraging that many of our Swedish units noted higher sales during the first half of the year," says Sardus' President, Ragnar Bringert, who adds: "At our Danish unit, 3-Stjernet, a review is in progress of our agency/distribution contracts on export markets, and a number of projects have been launched to recapture lost volumes on the domestic Danish market." Helsingborg, 16 July 2004 AB SARDUS (publ) Ragnar Bringert President Further details may be obtained from Sardus' President, Ragnar Bringert: +46 70 593 62 73