Dynamis AB acquires automation company EIA AB

Press Release
Morphic Technologies AB (publ)                                              
Karlskoga, January 7, 2008


Dynamis AB acquires automation company EIA AB

The Morphic Technologies AB subsidiary, Dynamis AB, is executing a minor
complementary acquisition of the Swedish automation company Euro Industrial
Automation AB. This acquisition will broaden Dynamis' range within materials
handling. 

Dynamis AB is today acquiring all shares in Euro Industrial Automation AB (EIA
AB), a company that specializes in materials handling systems for components for
the engineering industry, primarily the vehicle industry. 
EIA's products encompass everything from individual products (including conveyor
belt solutions) to complete systems for materials conveying. The company, which
has about 10 employees, also possesses many years of experience in complex
specialist solutions for component conveyance. 

The purchase price is MSEK 3. The vendor is EIA's founder and MD, Leif
Johansson. Payment will be made in cash. EIA reported a positive trading result
before depreciation and financial items in 2007 and is estimated only to have a
marginal impact on Morphic Group turnover and profits for the current year. An
acquisition analysis will be presented in the financial statement.

”With EIA's products and solutions, we are broadening the range we offer to the
market and we are looking forward to working with Leif Johansson. The
acquisition is fully in line with our strategy of establishing ourselves as a
complete materials handling company”, says Anders Reyier, MD of Dynamis AB. 

Dynamis develops, markets and sells systems for materials handling and
automation. The range on offer covers customized solutions as well as standard
products and concepts. The customers comprise primarily subcontractors to the
vehicle industry. The acquisition will broaden Dynamis' range to cover the
entire chain: from handling materials packaging and component handling to
machine feeding, examination and final inspection.

“Our many years of experience in component handling, together with Dynamis'
completely unique system for component localization and control, allows us to
offer complete, customized solutions. The SensActive™ technology is the only one
of its kind in the world and will be setting new standards within the
engineering industry for materials handling/processing, and it is going to be
exciting to be able to continue our development within Dynamis”, says Leif
Johansson, MD of EIA AB.

Market in strong growth phase  
In 2005, around 130,000 robot systems were installed throughout the world.
Around half of these comprised systems for materials handling. Annual global
investment in robotized materials handling systems is estimated to be around SEK
100 billion. On the Swedish market, investment is estimated as being
approximately MSEK 750 per year. In 2005, around 1,000 robot installations were
carried out in Sweden.  Half of these were materials handling systems. Of these,
around 25% could have used Dynamis products. 

“Operationally, the goal is to establish Dynamis on the market and to identify
potential collaborative partners. The initial focus is on the Swedish market,
but SensActive™ is now also being launched on selected European markets”, says
Jonas Eklind, President of Morphic Technologies in a statement. 

Facts about SensActive™
The unique thing about the SensActive™ system is the opportunity it provides to
identify component shapes. It is currently used in several of Dynamis' products,
for purposes such as allowing robots to pick unsorted goods direct from the
pallet (a process known as bin-picking), something that has not previously been
possible. Other products include quality inspection of components and pattern
layout of processed components. SensActive™ completely eliminates any need for
manual handling, thus creating a process that is considerably more efficient,
more rapid and more cost-effective. 

The system is available in two forms, either fully customized on the basis of
specific customer requirements or as a more standardized concept consisting of a
number of products. In addition to the bin-picking unit itself, a complete cell
normally comprises one inspection unit for measuring tolerances and exceptions,
conveyor systems, systems for pattern layout, robots, safety railings and grab
devices. 

There has been a high level of interest in SensActive™ since its launch in late
fall 2006. In 2007, for example, several orders for complete cells were received
from Haldex Brake Products AB. The systems are going to be used there in
complete materials handling systems, fully integrated into the Haldex production
process, and constitute an important reference plant for continued expansion.

A complete system installation costs around MSEK 1.5-2, of which 50% are
component costs (including robots), with installation and preparation costs
making up the remainder. 

Dynamis AB operates out of Karlskoga and has around 13 employees. The business
has been granted certification in compliance with ISO 9001:2000 and ISO
14001:2004.



For further information, please contact:
Johannes Falk, Information and Investor Relations Manager, Morphic Technologies
AB
Phone: +46 (0)706- 76 73 93, E-mail: johannes.falk@morphic.se.


Morphic Technologies is a Swedish industrial group that specializes in energy
systems for renewable electricity production as well as resource-light
production techniques for efficient component manufacture. The operations are
located in Sweden (Karlskoga, Filipstad, Kristinehamn and Göteborg) as well as
in Greece, Italy and Switzerland. The Company's class B shares are listed on the
Stockholm Stock Exchange's trading site, First North, with Remium Securities as
Certified Advisor. For more information, see www.morphic.se

DISCLAIMER: THIS DOCUMENT IS A TRANSLATION FROM THE SWEDISH ORIGINAL. NO
GUARANTEES ARE MADE THAT THE TRANSLATION IS FREE FROM ERRORS.