Annual General Meeting of Sectra AB

“During the past year, we have undertaken major efforts in relation to our digital mammography system and in increasing sales of our secure communications products in Europe. These are niche markets that we assess as having major growth potential and in which Sectra has favorable possibilities to continue its international expansion,” said President and CEO Jan-Olof Brüer in his address to Sectra’s Annual General Meeting in Linköping today, which was attended by 100 shareholders.

At the meeting, a decision was approved in accordance with the Board’s proposal to pay a dividend of SEK 0.50 per share to shareholders, totaling SEK 18,264,319. The record day for the dividend was set as Friday, July 1, 2005, and distribution is expected to be made on July 6, 2005. Thomas Ericson, Torbjörn Kronander, Anders Persson, Gündor Rentsch and Carl-Erik Ridderstråle were elected as Board members. At a constituent Board meeting after the Annual General Meeting, Thomas Ericson was appointed as chairman. The Meeting decided to appoint a nomination committee and to elect the Chairman of the Board, Viiveke Fåk and Bengt Bengtsson as members of the nomination committee prior to the Annual General Meeting in 2006. The Meeting decided on the authorizations and on convertible and options programs on the comparable levels decided at the Annual General Meetings in the immediately preceding years. The Board was authorized by the Meeting to approve a new share issue of not more than 3,600,000 Series B shares during the time prior to the next Annual General Meeting. The Board will be able to utilize this authorization to finance the acquisition of companies or operations and in conjunction with market investments. The dilution effect if the entire authorized amount is exercised will be approximately 10% of the share capital and about 6% of votes. The Meeting also authorized the Board to decide on acquisitions and transfer of the company’s own shares in accordance with the Board’s proposal. In accordance with a proposal, the Annual General Meeting approved the issue of convertibles to the Group’s employees and to elected external Board members. The debentures can be subscribed for during the period from October 3 - 14, 2005 and fall due for payment on June 15, 2008. The conversion rate will correspond to 135% of the volume-weighted average of listed bid prices for the company’s share on the Stockholm Stock Exchange from August 30, 2005 through September 13, 2005. Conversion to Series B shares can be made during the period May 26 - 30, 2008. The dilution effect in the event of full subscription and full conversion will be not more than 1.0% in terms of share capital and about 0.6% in terms of votes. The Meeting also adopted the Board’s proposal for the issue of an additional maximum of 40,000 employee options for the Group’s employees in the US. If these options are exercised in full, the employees will acquire shares in the company in an amount that corresponds to as much as approximately 0.1% of the share capital and 0.1% of votes. Taking into consideration employee options issued earlier, the total dilution effect amounts to approximately 0.3% of the share capital and about 0.2% of the number of votes.