Market conditions continue to improve

The order intake increased by 12.9% compared with last year and reached NOK

406.7 million. Revenue amounted to NOK 411.1 million in first quarter of 2010, a

25.4 per cent decrease compared with the same period last year. First quarter

2009 reflects a phasing out of backlog before the impact of the recession. The

profit before tax was NOK 3.0 million (NOK 25.0 million). Cash flow from

operations was negative by NOK 31.7 million (NOK 35.0 million). The order intake

was NOK 406.7 million and the order backlog was NOK 783,5 million, an increase

of 12.9 and 7.1 per cent respectively.

Enclosed in pdf are the interim report and the presentation.

Key items

Figures in brackets refer to the first quarter of 2009 unless otherwise stated.

Positive order development

The order intake increased by 12.9 per cent to NOK 406.7 million (NOK 360.2

million). The order backlog at the end of the first quarter was NOK 783.5

million (NOK 731.9 million).

Expanding market coverage

The integration and set up of the new operations in Germany and China are

progressing according to plan.

Lower revenue

Revenue decreased by 25.4 per cent to NOK 411.1 million (NOK 550.7 million).

First quarter 2009 reflects a phasing out of backlog before the impact of the

recession.

Operating profit

EBITDA and EBIT were NOK 13.4 million (NOK 43.5 million) and NOK 5.9 million

(NOK 34.3 million) respectively. Restructuring costs of NOK 6.0 million related

to the Swedish operation in Karlskoga were charged to the profit and loss in

first quarter 2010. The Karlskoga operation showed a negative EBIT of NOK 14.0

million in the first quarter.

Profit before tax

Profit before tax amounted to NOK 3.0 million (NOK 25.0 million), which reflects

a margin of 0.7 per cent (4.5 per cent).

Weak cash flow

Cash flow from operations in the first quarter was negative by NOK 31.7 million

(NOK 35.0 million) mainly due to working capital changes.

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

[HUG#1412310]

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