SWECO AB (publ) Interim report January-March 2007

Strong first quarter for SWECO

 Operating profit improved by 22 per cent to SEK 140.4 million (115.3).

 Operating margin was 12.3 per cent (12.0).

 Net sales increased by 20 per cent to SEK 1,145.0 million (958.5).

 Profit before tax totalled SEK 140.1 million (117.7).

 Profit after tax was SEK 98.8 million (82.4), equal to earnings per share of SEK 5.78 (4.74).

 After the end of the reporting period, SWECO signed an agreement to
acquire Hydroprojekt CZ with 270 employees in the Czech Republic.

Comments from CEO Mats Wäppling:

- SWECO has achieved an impressive first quarter. Operating profit increased by 22 per cent and operating margin exceeded 12 per cent. Net sales rose by 20 per cent and we are growing both in the Nordic region and our international growth markets.

- Market conditions remain favourable for all areas of operation and we see no indication of slowing.

- SWECO has signed an agreement to acquire the Czech consulting company Hydroprojekt, with 270 employees, which is active mainly in water resources and wastewater management. The acquisition will give us a strong position in the Czech Republic and a new home market in Central Europe, as well as consolidating our market position in water and environment.

- Our ambition is to continue growing with sustained profitability by more intensively targeting the Nordic market and expanding operations in our growth markets. The outlook for the remainder of 2007 is bright.