Significant improvement in earnings for the Nolato Group

Significant improvement in earnings for the Nolato Group

Nolato is pleased to report a significant improvement in earnings, with
excellent profit margins during the fourth quarter for Nolato Telecom and Nolato
Medical. Sales rose by 5 percent to sek 634 m (603), with operating income
(ebita) up 44 percent to sek 65 m (45). A dividend for 2007 of sek 3.00 per
share (2.40) has been proposed, representing an increase of 25 percent compared
with the previous year.

“The significant improvement in earnings is due to factors such as strong growth
within Nolato Telecom, where earnings rose 50 percent to SEK 27 M (18),”
explains Nolato's CFO, Per-Ola Holmström. “Nolato Telecom's sales totalled SEK
241 M (277). During 2007, the business area continued to build up relationships
with key customers, winning a number of major system projects, starting
production during the second half of 2007 and during 2008.”

Nolato Medical saw a 77 percent rise in sales to sek 147 m (83), and earnings
which more than doubled to sek 25 m (12). Acquisitions, a successful focus on
Europe, and growth in volumes with existing customers all contributed towards
this healthy growth. Organic growth for the fourth quarter was 14 percent.

“Both Nolato Telecom and Nolato Medical experienced a high degree of capacity
utilization, which had a positive impact on the operating margin,” he continues.
“Nolato Telecom also enjoyed successful new project start-ups for mobile phone
customers.”

Consolidated sales for 2007 as a whole totalled sek 2,454 m (2,702), with
operating income (ebita) excluding non-recurring items of sek 207 m (209), net
income up at sek 151 m (48) and earnings per share up at sek 5.74 (1.82). Cash
flow after investments rose to sek 227 m (142), excluding acquisitions and
disposals.

The Annual Meeting will be held on April 28 at 18:00 in Grevie.

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For further information, please contact:
Per-Ola Holmström, CFO, telephone +46 431 44 22 93 or mobile phone +46 705 76 33
40

The Nolato Group is a high-tech developer and manufacturer of polymer components
and product systems for leading customers in telecommunications, automotive
products, white goods, medical technology, pharmaceuticals, hygiene and other
selected industrial sectors. The Group has operations in Sweden, China, Hungary,
Japan, Malaysia, Norway, Poland and Czech Republic. Nolato's shares are quoted
in the OMX Nordic Exchange, Small Cap, Information Technology. www.nolato.com