Interim report for the three months ended 31 March 2007

* Strong growth in the first quarter. Revenue rose by 11 per cent at fixed exchange rates and by 6 per cent in SEK to SEK 1,508 M (1,416).
* Operating profit improved by 16 per cent to SEK 382 M (329).
* Operating margin was 25.3 per cent (23.2).
* Profit after tax amounted to SEK 266 M (229).
* Earnings per share were SEK 1.83 (1.58).
* New financial goals with an increased growth ambition. A target for net debt was established.

Comments from the CEO
Continued strong growth and improved profit
“For the first quarter of 2007 we are pleased to report a continued strong development of both revenue and operating profit for Seco Tools. This success can be attributed to our strong product portfolio, together with ongoing market activities and a robust economy.

Demand in our largest market, Western Europe, continues to be strong. Central and Eastern Europe, Asia and South America also showed continued positive development and high growth rates, while growth in North America declined somewhat. On the whole, we see no indication of slowing in demand.

The period’s strong revenue, combined with high capacity utilisation in production and continuous rationalisation measures, generated excellent earnings for the period. Operating margin reached 25.3 per cent and return on both capital employed and equity was nearly 40 per cent.
New financial goals, including an increased growth ambition and a capital structure target, have been set by the Board of Directors”, says Kai Wärn, President and CEO of Seco Tools.

Fagersta, Sweden, 26 April 2007

SECO TOOLS AB; (publ)

Kai Wärn
President and CEO

For additional information contact Kai Wärn, President and CEO, telephone +46 (0) 223-401 10 or Patrik Johnson, CFO, tephone +46 (0) 223-401 20. 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 (0) 223-400 00.