Preliminary Earnings Sectra AB (publ) for the period May 1999 - April 2000

Preliminary Earnings Sectra AB (publ) for the period May 1999-April 2000 Full Year 1999/2000 (May 1998-April 1999 in parentheses) * Sales reached SEK 191.6 (182.9) million, up 4.7%. * Earnings before tax rose 18.0%, to SEK 25.1 (21.3) million. * Earnings per share equaled SEK 1,58 (1.61). * All time high orders received totaled SEK 433.5 (156.8) million. Significant events in the fourth quarter * Sectra introduced the world's first digital radiology system for orthopedics. * Sectra received large orders for digital x-ray systems from the county councils for Värmland and Östergötland, Sweden, and from the Stockholm Söder Hospital. These orders are worth some SEK 217 million altogether. * Sectra received the first orders from international clients outside the armed forces for its Tiger mobile phone. Significant events after the end of the period * Sectra received an order from the Swedish armed forces for secure broadband communication. The order is valued at more than SEK 11.6 million. * Sectra received an order to develop and supply a next-generation cutting-edge radio system for aviation communication. The order is worth about SEK 20 million. * Working with Philips Medical Systems, Sectra secured its biggest order to date for PACS in the United States. The client is a hospital chain in New York. Markets and product development Sectra's medical imaging systems attracted intense interest in Sweden and abroad in fiscal 1999/2000. The Company won several key orders and conducted projects in Norway, Germany, the United States, the Netherlands, and other countries. Sectra launched a new generation of its PACS and introduced the world's first digital x-ray system for orthopedics. In the fourth quarter, Sectra received large orders for digital x-ray systems from the county councils for Värmland and Östergötland and from the Stockholm Söder Hospital. The total value of these orders was about SEK 217 million. During the year, Sectra's secure communication systems business entered two new markets. From the Norwegian armed forces, Sectra received its first export order for the military version of the Tiger phone. Sectra has noted heightened interest in sophisticated security products in the civilian market and in October launched a version of Tiger aimed at non- military users. In the fourth quarter, the company received its first orders from civilian clients outside Sweden for the Sectra Tiger phone. In the field of wireless information systems, Sectra enjoyed rising demand in fiscal 1999/2000. The company won a key strategic order from Switzerland for DARC infrastructure and receivers for financial information. Sectra supplied a prototype series of a new generation of radio system for the aircraft positioning system of the future. Sales and earnings Consolidated net sales for 1999/2000 were up 4.7%, at SEK 191.6 (182.9) million. Consolidated earnings before tax reached SEK 25.1 (21.3) million, an improvement of 18% from the preceding year. Orders received totaled SEK 433.5 (156.8) million. Breakdown of sales by business area (SEK million): Medical imaging systems 109.8 Secure communication systems 58.7 Wireless information systems 23.1 Parent Company revenues reached SEK 16.8 (11.3) million. The Parent Company reported a loss before tax of SEK 2.0 (7.2) million. Financial position Sectra enjoys a solid financial position. The Company has financed growth with internally generated funds. At April 30, 2000, the Company had an equity ratio of 63.1% (58.1), and liquidity ratio of 3.2 (2.9). The Company's interest-bearing liabilities equaled SEK 9.1 (4.1) million. Investments The Company gross invested a total of SEK 31.5 (3.0) million, including SEK 24.0 million in shares in subsidiaries, SEK 3.0 million in shares in associated companies, and SEK 1.8 million in other equities. Other investments were mainly in computers and other equipment. Acquisitions In December 1999, Sectra acquired RadiSoft AB. The Company is a leader in the Scandinavian market for radiology information systems (RIS) and administrative IT systems for mammography screening. The acquisition strengthened Sectra's range of products for medical image processing systems. The acquisition price was SEK 21 million, and consideration was paid as 420,315 new B shares in Sectra AB. Associated companies In fiscal 1999/2000, Sectra acquired a stake in Mamea Imaging AB. The company develops digital radiology sensors based on new technology that makes it possible to combine extremely high image quality with minimal radiation dosage. The aim is to integrate Mamea's products with Sectra's PACS to create solutions for entirely film-free mammography. Commit; Oy, Finland's No. 1 supplier of IT systems for healthcare, bought Sectra Imtec's stake in the associated company Sectra Commit Oy during the year. Sectra Imtec simultaneously acquired 15% of Commit; Oy to bolster its position in Finland. Convertible debentures During October 1999, 105,000 convertible debentures were issued to employees in the Sectra Group. The program was fully subscribed. Upon full conversion, Sectra would have an additional 105,000 B shares on issue, corresponding to no more than 1.0% of the share capital and 0.6% of the number of votes. The convertible debentures mature on July 1, 2002, and have a conversion price of SEK 52. Outlook Sectra have a very solid position in several high growth niche markets. We have a strong domestic market position within niches were Sweden leads the technical development. Based on this the Board of Directors expects that the Company will continue to expand while maintaining profitability. Dividend For fiscal 1999/2000, the Board has proposed a dividend of SEK 0.60 per share. The proposed record date for the dividend is Monday July 10, 2000. If the shareholders' meeting adopts the proposal, VPC is expected to pay the dividend on July 13, 2000. Annual meeting The general meeting of shareholders in Sectra AB (publ) will be held at 4:00 PM on July 5 at Collegium in Linköping, Sweden. Future reports The 1999/2000 annual report will be distributed to shareholders in the end of June 2000. Interim Report May-July 2000: September 11, 2000 Interim Report May-October 2000: December 11, 2000 Interim Report May 2000-January 2001: March 5, 2001 Preliminary Earnings for 2000/2001: May 28, 2001 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/06/06/20000605BIT01160/bit0001.doc http://www.bit.se/bitonline/2000/06/06/20000605BIT01160/bit0002.pdf