Interim Report Second Quarter 2016

Second quarter

  · Net sales increased by 8% to SEK 115.6 (107.0) million. Adjusted to fixed
exchange rates, net sales increased by 12%.
  · Operating profit, excluding non-recurring items, increased by 8% to SEK 42.7
(39.5) million.
  · Profit before tax, excluding non-recurring items, increased by 12% to SEK
33.5 (30.0) million.
  · Diamorph AB (publ) acquired a further 10% of Diamorph Bearings AB from 2 of
the minority shareholders for consideration of SEK 22.8 million.

First half

  · Net sales were flat at SEK 223.0 (223.9) million. Adjusted to fixed exchange
rates, net sales increased by 2%.
  · Operating profit, excluding non-recurring items, decreased by 11% to SEK
75.6 (84.9) million.
  · Profit before tax, excluding non-recurring items, decreased by 14% to SEK
57.0 (66.0) million.
  · The results reflect longer term investments being made in sales and
marketing to support the launch of the new Ferobide product and grow sales of
existing products.

The full report is attached to this press release and is also available for
download at www.diamorph.com.

For additional information, please contact:
Gordon MacLeman, CEO
Telephone: +44 161 955 2410

Mark Hutchison, CFO
Telephone: +44 7930 118555 (http://tel%2B44%207930%20118555)

The information was submitted for publication on August 24, 2016, at 08:00.

Diamorph supplies advanced material solutions for especially demanding
industrial applications. The Company is headquartered in Stockholm and has
subsidiaries in the United Kingdom and the Czech Republic. Diamorph’s vision is
to become a globally leading niche supplier of advanced materials. Learn more at
www.diamorph.com.