Interim report for the nine months ended 30 September 2006

 Year-over-year revenue for the third quarter rose 10 per cent at fixed exchange rates and 7 per cent overall.
 Operating profit for the third quarter was up by 22 per cent to SEK 298 M (245). Operating margin was 23.6 per cent (20.7).
 Revenue for the nine-month period amounted to SEK 4,039 M (3,615), an increase of 12 per cent overall and 10 per cent at fixed exchange rates.
 Profit after tax for the nine-month period is reported at SEK 629 M (541).
 Earnings per share for the nine-month period were SEK 4.32 (3.72).
Comments from the CEO

“Our strong performance continued through the third quarter of 2006 with brisk revenue growth in Western Europe and NAFTA. This positive development was significantly aided by a comprehensive range of high performance products, coupled with extensive marketing activities and a still robust economy. Although development in Southeast Asia was weaker than for the Asian region as a whole due to market repositionings, these measures will yield positive effects in the coming year. On the whole, we see no indication of slowing in demand.

Earnings improved during the quarter, thanks to a combination of solid growth and high capacity utilisation. Parallel to this, continuous efforts are being made to boost productivity and reduce the cost level. One such step was the opening of a plant for global production of turning toolholders in India during the quarter,” says Kai Wärn, President and CEO of Seco Tools.

Fagersta, Sweden, 27 October 2006

SECO TOOLS AB; (publ)

Kai Wärn
President & CEO

For additional information contact Kai Wärn, President and CEO (Tel: +46 223-401 10) or Stefan Sjödahl, Acting CFO, (Tel: +46 223-401 32). E-mail can be sent to investor.relations@secotools.com

Previously published financial information can be found under “Investor Relations & Corporate Governance” on the Seco Tools website (www.secotools.com). Seco Tools AB’s corporate registration number is 556071-1060 and the company’s address is Seco Tools AB, SE-737 82 Fagersta, Sweden. The telephone number to the Group head office is +46 223-400 00.