Strong sales, however fourth quarter generated a loss following dramatic currency fluctuations as well as extraordinary provisions

Strong sales, however fourth quarter generated a loss following dramatic
currency fluctuations as well as extraordinary provisions

Fourth quarter 2008:
• Net sales in Q4 increased to SEK 121.1 m (113.9), an increase of 6.3 percent. 
• Operating loss (EBIT) of SEK 10.4 m (profit: 6.1), while the pre-tax loss
amounted to SEK 10.6 m.
• EBIT includes extraordinary items estimated at SEK -12.9 m, due to currency
fluctuations and provisions for the restructuring of inventories. 
• Loss per share after tax of SEK 0.69 (profit: 0.32). 
• Order intake was SEK 105.5 m (82.1), an increase of 28.5 percent.

Full-year 2008:
• Net sales of SEK 362.5 m (346.3), an increase of 4.7 percent.
• Operating loss (EBIT) of SEK 8.2 m (profit 9.2), while pre-tax loss of SEK
10.1 m.
• Loss per share after tax of SEK 0.66 (profit: 0.43).
• For the full-year cash flow from operations was negative at SEK 22.8
(negative: 30.2), mainly due to negative results and increase in working
capital.

Comments by the CEO, Jérôme Arnaud:
”In line with our strategy, 2008 was a year of steady growth in the Care
Electronics business unit, off-setting lower sales in Home Electronics and
Business Electronics. However, the expected positive results failed to
materialize, due mainly to the exceptional impact of currency fluctuations in Q4
and a sudden general drop in consumer electronics consumption, primarily in the
UK.
The Doro Group's sales rose 6.3 percent, while order intake grew by 28.5 percent
in the fourth quarter 2008, driven by continued growth in Care Electronics. This
business unit doubled its sales compared with equivalent quarter in 2007, now
accounting for 43.3 percent of total Group sales. At the same time sales in Home
Electronics and Business Electronics' share of total sales continued to fall,
decreasing by 21.7 percent in Q4. 
The achievements of Care Electronics have mainly been driven by its success of
GSM products and its geographical expansion, including in the US market, which
we entered in November. 
The rapid appreciation of the US dollar in late 2008 had a negative impact on
our margins. Unstable exchange rates caused our Board to adopt a revised and
structured hedge policy and our company increased prices. We see the acceptance
of the latter by our customers as an evidence of the added value our niche
products and as an affirmation of confidence in Doro.
The sudden slow down in the economy has led us to streamline and simplify our
operations our operations into two business units instead of three. Effective as
of first quarter 2009, the business units Home Electronics and Business
Electronics are merged to business unit Home.
We firmly believe our Care strategy is driving the company toward profit. We
have initiated even more aggressive measures to expand our share of the Care
Electronics segment in our key markets, the Nordic region and Continental
Europe, while we continue to establish the Doro brand in the US market. 
As we enter 2009, I am confident that Doro is in a better position to meet the
challenges in the present market situation.”

About Doro 
With over 30 years' experience in telephony Doro is today characterized by
innovative and user-friendly consumer electronics
products. The company develops markets and sells a wide range of products in
three business units: Care Electronics, Home
Electronics and Business Electronics. The company's products are sold in more
than 30 countries worldwide through a variety of retail
outlets, including electronics stores, online stores and specialized channels.
The company had sales of SEK 363 million in 2008.
Doro's shares are quoted on the Nasdaq OMX Nordic Exchange Stockholm, Small Cap.
Read more about Doro at www.doro.com