Report from Sectra’s Annual General Meeting

The Annual General Meeting (AGM) of shareholders in Sectra AB (publ) was held today in Linköping.

“We strengthened our position internationally during the 2006/2007 fiscal year and reported the best order bookings and sales in Sectra’s history. Investments in strategically key markets continued and we also expanded our service and support offerings to include customers in all our markets,” said Jan-Olof Brüer, President and CEO, in his address to the AGM, which was attended by approximately 70 shareholders.

The Annual General Meeting adopted the income statement and balance sheet, as well as the consolidated income statement and balance sheet, presented to the Meeting. The members of the Board of Directors and the President were discharged from liability for the fiscal year.

Dividend
The Meeting approved the distribution to shareholders of a dividend of SEK 0.50 per share, amounting to a total dividend of SEK 18,421,044.00. July 3 was established as the record day for the dividend, which is to be paid through VPC on July 6, 2007.

Election of the Board of Directors
Torbjörn Kronander, Anders Persson, Gündor Rentsch and Carl-Erik Ridderstråle were re-elected to the Board. Erika Johnson, CFO at Karo Bio, was elected new Board member. Carl-Erik Ridderstråle was elected Chairman of the Board.

Election of auditors
Lindebergs Grant Thornton, with Ivar Verner as Auditor in Charge, was re-elected company auditor for a period of four years.

Nomination committee
The Meeting decided to appoint a nomination committee comprising three members, of whom one will be the Chairman of the Board and two will represent major shareholders in the company. The members of the nomination committee will be appointed effective October 31, 2007, after consultation with major shareholders in the company. The nomination committee will prepare and present proposals to the Annual General Meeting for the election of the chairman of the Meeting, Chairman of the Board and other Board members, as well as the fees to be paid to the Board members. Where applicable, the nomination committee will also propose candidates for the election of auditors and fees to be paid to the auditors.

Authorizations
The Meeting authorized the Board to decide on the new issue of not more than 3,600,000 Series B shares, for consideration paid in cash, via an issue offsetting debt or capital contributed in kind. Such a new issue may disregard shareholders’ preferential rights. If the authorization is fully utilized, the dilution effect will be approximately 10% in terms of share capital and approximately 6% in terms of voting rights.

The Meeting also voted to authorize the Board to purchase or sell Series B treasury shares on one or more occasions during the period ending at the next Annual General Meeting. The authorization is restricted to actions that would not cause the company’s treasury share holdings to exceed 10% of all of the shares in the company.

Convertible and stock option programs
The Meeting voted in accordance with a motion to issue convertibles to Group employees and to external Board members. The convertibles may be subscribed for during October 1-12, 2007, and conversion to Series B shares will be possible during May 24-28, 2010. Assuming full distribution, the maximum dilution effect would be 1% of the share capital.

The Meeting also adopted the Board’s motion to distribute an additional maximum of 100,000 employee stock options to Group employees in the US. If these employee stock options are fully exercised, employees will acquire shares in the company in a number corresponding to approximately 0.3% of the share capital and 0.2% of the voting rights.

Principles for remuneration and other terms of employment for company management
The Meeting adopted the Board’s motion that remuneration to company management, which includes the President and other members of Group management, shall be formulated in accordance with market conditions and simultaneously support the interests of shareholders. Remuneration shall primarily comprise basic salary, variable salary, defined-premium pension benefits and other benefits, for example, a company car.

Furthermore, the Meeting adopted the Board’s motion that Board members with special expertise, who perform services for the company in addition to Board assignments, should receive market-based fees.

Amendment of the Articles of Association
The Meeting approved an amendment of the Articles of Association so that the article governing the company’s area of operation will also include the company’s customer-financing operations.