Sectra's first-quarter interim report: Sectra completes mammography modality transaction

Sectra's first-quarter interim report: Sectra completes mammography
modality transaction

IT and medical technology company Sectra's profit after net financial
items for the company's first quarter, May - July 2011, rose 25.6% to
SEK 16.2 million (12.9), corresponding to a profit margin of 9.6% (7.5).
The Group reports an operating profit of SEK 6.5 million (9.0) and net
sales of SEK 169.3 million (172.8). Order bookings rose 13.8% to SEK
190.8 million (167.7).

The reported outcome pertains to Sectra's remaining operations and does
not include Sectra's modality operations in digital mammography that
were acquired by Royal Philips Electronics. The agreement was signed in
June and the transaction was finalized on August 31. The cash purchase
consideration on a debt-free basis was EUR 57.5 million. The agreement
includes an additional purchase sum of EUR 12.5 million, which falls due
after five years if specially agreed conditions are met.

“The unique low-radiation mammography technology that we have developed
and introduced on the market will receive broad international
distribution and benefit many women. In addition to the capital gain,
the transaction with Philips will contribute favorably to the Group's
operating profit this financial year,” says Jan-Olof Brüer, President
and CEO of Sectra AB.

In the U.S., uncertainty surrounding the current budgetary savings has
had a dampening effect on the market. Sectra experiences that the sales
process is taking longer than before, which is delaying orders for new
projects.

“The economic trend will determine the size of our customers'
investments. Budgetary savings are affecting our customers within
healthcare as well as authorities and defense. However, Sectra products
and services contribute to enhance efficiency and save expenses in
customers' operations, which in the long term will imply continued
growth in our markets,” says Jan-Olof Brüer.

The transaction with Philips will create greater opportunities and
increased resources for Sectra to expand its operations.

“A large portion of Sectra's current revenues is generated by existing
customers, in the form of additional sales and long-term agreements for
products, services, support and upgrades. These customers give us a
solid base for continued expansion. Increased sales of systems, products
and services, combined with the work we carry out to make the
installations and upgrades of our medical systems more efficient, will
determine when we achieve our profit target of 15%.”

The information in this press release is such that Sectra AB (publ) is
obligated to disclose in compliance with the Swedish Securities and
Clearing Operations Act. The information was submitted for publication
on September 6, 2011 at 08:00 a.m. (CET).

For further information, please contact:

Dr. Jan-Olof Brüer, CEO and President Sectra AB, tel 46 13 23 52 09