Preliminary Report on 1996 Operations

Preliminary Report on 1996 Operations Earnings of the Scancem Group in 1996, after net financial items and minority shares, totaled SEK 1,151 M (955). Earnings were positively affected by nonrecurring items in the amount of SEK 370 M (63), of which approximately SEK 10 M (10) in the fourth quarter. The forecast in the nine-months report that earnings for the full year would amount to at least SEK 1.1 billion was thereby fulfilled. Profit per share, after deduction for full tax, was SEK 18.00 (16.00). The gradual improvement in Scancem's earnings, compared with 1995, continued during the fourth quarter, with earnings being approximately 20 percent higher than in the corresponding period last year. Group sales totaled SEK 14.2 billion (13.9). The construction market in Sweden remains weak and is showing no signs of improvement. The expected upturn in the British market has yet to materialize. However, there is a noticeable improvement in the Finnish market. Demand for Scancem's products remains strong in Norway and Denmark, as well as in the United States and Africa. Scancem's definitive report on 1996 operations will be released on February 28, 1997. The Annual General Meeting will be held in Malmö on April 24. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1997/01/27/19990107BIT00190/bit0001.doc http://www.bit.se/bitonline/1997/01/27/19990107BIT00190/bit0002.pdf