Interim report for the three-months period ended July 31, 2006: Sectra increases sales and strengthens its international sales organization

Sectra’s net sales for the first quarter increased by 33.8% to SEK 134.9 million (100.8) compared with the year-earlier period. Profit after financial items increased by 2.0% to SEK 5.0 million (4.9), which corresponds to a profit margin of 3.7% (4.9). Order bookings totaled SEK 98.8 million (115.5).

Increased revenues from direct sales of medical systems in the US and the completion of the digitization at the Karolinska University Hospital, one of the largest hospitals in the Nordic region, contributed to the quarter’s increase in net sales. “Direct sale of medical systems in the market outside Scandinavia has gradually increased during the past six months as a result of our ongoing market investments,” says Jan-Olof Brüer, CEO and President of Sectra AB. “As previously announced, we are in the process of developing our international distribution network and our service organization to satisfy the growing demand in the market for our medical systems. During the quarter, we strengthened our international sales and support organizations with about ten new employees,” says Jan-Olof Brüer. During the quarter, Sectra’s sales success continued in the mammography market through orders from mammography clinics in Sweden, Norway, France and Australia. FDA application In the US there is an ongoing clinical study for Sectra’s digital mammography system, Sectra MicroDose Mammography. During the first quarter, data acquisition for the study was completed. Accordingly, Sectra is one step closer to an application for approval from the American Food and Drug Administration. “The fact that we have completed our data acquisition in the clinical study signifies that we have passed an important milestone on the road to an approval to sell Sectra MicroDose Mammography in the US,” says Jan-Olof Brüer. “The analysis of the results from the study is now in progress and when it is finalized, we will submit a formal application,” concludes Jan-Olof Brüer.