VärmeKyl Grossisten Scandinavia AB (publ) Interim Report 1 January – 30 June 2007

For the period 1 January - 30 June 2007

Performance in line with forecast and good prospects for the future

- Värmekyl Grossisten, VKG, posted net sales of SEK 147.0 million (SEK 61.5 m) for the period.
- The Company posted an operating loss for the period of -SEK 18.3 million (SEK 2.0 m). The loss after tax amounted to -SEK 14.1 million (SEK 2.0 m) and earnings per share totalled -SEK 0.87 (SEK 0.16).
- Warm weather meant that market demand was weaker than expected, particular during the first quarter of 2007.
- The half year saw VKG incur substantial expansion costs designed to enable a continued high growth rate.
- VKG has substantially improved the efficiency of the organisation, and is now prepared for the second half of the year with a high level of growth and good profitability.
- Earlier forecasts for the full year 2007 regarding turnover in excess of SEK 530 million and operating profit in excess of SEK 50 million remain.

The second quarter of 2007 compared with the second quarter of 2006

- Net sales for the period amounted to SEK 72.7 million (SEK 46.6 m).
- The operating loss amounted to -SEK 10.4 million (SEK 1.6 m). The loss after tax was -SEK 8.0 million (SEK 1.8 m) and earnings per share totalled -SEK 0.47 (SEK 0.12).
- The quarter saw VKG incur substantial expansion costs designed to enable a continued high growth rats.
- During the second quarter, VKG continued to take market shares within most product areas.

Events after the end of the period:
- As from 1 July, the Company has engaged Stockholm Corporate Finance AB as new Certified Adviser after Remium Securities AB. We thank Remium for a successful first year as listed on First North and we look forward to cooperation with Stockholm Corporate Finance AB.
- With the aim of further strengthening the insight and interest of the employees in VKG’s earnings trend, the Board of Directors has proposed a warrant programme directed to all employees. The proposal will be put forward for approval at an Extraordinary General Meeting on 23 July.