Interim report Q2, 1 September 2010 - 28 February 2011: Lower sales and margins

Interim report Q2, 1 September 2010 - 28 February 2011: Lower sales and
margins

During December and January 2011, the total confectionery market
declined by 1.5%* and Cloetta by 3%*. Our ongoing focus on new product
launches and the related costs for product development and increased
sales and marketing activities did not generate the anticipated sales
during the second quarter. Sales of Cloetta's products for the quarter
amounted to SEK 202 million (212) and operating profit was SEK -23
million (-7). Net sales for the first half of the year totalled SEK 557
million (581) and operating profit was SEK 22 million (37).

"The second quarter can be summed up by a number of notable product
launches and continued good performance for our strong brands but an
overall decrease in sales, mainly for the pick-and-mix segment and
seasonal products," comments Cloetta's CEO Curt Petri.

Lower sales and a decrease in products manufactured on contract,
together with continued high raw material prices, put pressure margins
and led to a drop in operating profit compared to the same period of
last year.

"Sweden's most sold confectionery item, Kexchoklad, has been given a
whole new design. Ahead of the ski season the brand was complemented
with Kexchoklad blueberry, which contributed to growth in sales of
Kexchoklad. In the second quarter we relaunched Cloetta's chocolate
bags, with Polly, Bridge, Kexchoklad mini bars and the new Pops Crunchy
under a uniform concept for greater visibility in stores, which met with
a positive reception," says Curt Petri.

"We are now working with an increased focus on efficiency-enhancement
programmes throughout the value chain. Sales and marketing activities
are being optimised and we are analysing the entire company to ensure
the conditions to sell and produce our products efficiently. There is
also a need to raise our prices for certain products," concludes Curt
Petri.

* Nielsen, value sales (in stores)

The information in this press release is subject to the disclosure
requirements of Cloetta AB (publ) pursuant to the Swedish Securities
Market Act. The information was submitted for publication on 23 March
2011, 12:30 p.m CET.

For further information contact Curt Petri, Managing Director and CEO,
mobile +46 70-593 21 69 or Kent Sandin, CFO, mobile +46 70-582 77 95.