Interim report January-June 2005

Good sales increase Unfavorable earnings trend Sardus increased its sales by 11% during the first six months of 2005, while profit after tax totaled SEK 18 M compared with SEK 36 M for the year-earlier period. The underlying factors were sluggish retail sales at the beginning of the year and rising raw material prices that proved impossible to offset with price increases. The forecast of pre-tax profit of SEK 115 - 125 M remains in place.

For Sardus, the first quarter of 2004 was a flat period, while the second quarter showed a more positive trend. Higher sales for the second half of the year of SEK 944 M (852) are due to the fact that the recently acquired companies Allt Smörgås and Smörgåsfabriken are included in the new Sardus Lätta Måltider (Light Meals) business unit during the first half of the year and contributed SEK 94 M to the sales increase. Both companies show a highly positive trend. During the second quarter, Sardus acquired the distribution company Odenmackan, which has SEK 15 M in sales. Sardus’ pre-tax profit for the first six months totaled SEK 25 M (50) and profit after tax totaled SEK 18 M (36). Most of the fall in earnings relates to the first quarter. The merger of Pastejköket and Charkdelikatesser and an action program designed to cut costs at 3-Stjernet are progressing as scheduled. New market ventures are being prepared using a number of new concepts in Sardus Lätta Måltider, which will reach the market during 2005 and 2006. Given the current market conditions in terms of raw material prices and the response of the trading bloc in the form of price-focused competition in the retail trade, pre-tax profit for 2005 is anticipated to amount to SEK 115 - 125 M, that is, SEK 8-9 per share. A large share of profit is normally generated during the second half of the year. Helsingborg , July 15, 2005 AB Sardus (publ) Ragnar Bringert President and CEO Further details may be obtained from the company’s President and CEO, Ragnar Bringert, phone +46(0) 42-37 02 50 or +46 (0) 70-593 62 73.