Annual General Meeting in Munters AB (publ)

Annual General Meeting in Munters AB (publ)

Board of Directors
The Annual General Meeting held in Munters AB today re-elected the Board members

Berthold Lindqvist, Anders Ilstam, Bengt Kjell, Sören Mellstig, Sven Ohlsson,
Eva-Lotta Kraft and Jan Svensson and elected the Managing Director of the
company, Lars Engström, as new Board member. Berthold Lindqvist was appointed
Chairman of the Board. At the subsequent statutory meeting of the Board of
Directors, Bengt Kjell was appointed deputy Chairman of the Board.

Dividend
The Annual General Meeting determined a dividend of SEK 6.75 per share, in
accordance with the proposal of the Board of Directors. Friday 27 April 2007 was
determined as record day for the dividend, which is expected to be distributed
by the Swedish Central Securities Depository (“VPC AB”) on 3 May 2007.

Guidelines for remuneration to senior executives
The Meeting resolved to establish guidelines for remuneration to senior
executives in accordance with the proposal of the Board of Directors,
principally entailing that the remuneration shall be in accordance with market
conditions and have a pre-determined cap.

Redemption program
In accordance with the proposal of the Board of Directors, the Munters Annual
General Meeting resolved on a share split 4:1 in combination with an automatic
redemption of shares, according to which the shareholders will receive three new
shares and one redemption share. The redemption share will be redeemed at SEK
20. The resolution entails that approximately MSEK 492 will be distributed to
the shareholders, in addition to the ordinary cash dividend of SEK 6.75 per
share, i.e. a total amount of SEK 26.75 per original share.

In brief, the redemption procedure implies that

• The company will perform a share split 4:1.
• Every fourth share, the redemption share, will be automatically redeemed at
SEK 20.
• Record day for the share split will be 18 May 2007.
• Shareholders who wish to sell their redemption shares before the redemption,
will be able to do so during the period 21 May - 7 June 2007, when the
redemption shares will be traded on the OMX Stockholm Stock Exchange.
• Payment of the redemption proceeds is expected to take place on 15 June 2007.
The redemption procedure entailed resolutions on the following principal issues.

•Amendment of the Articles of Association so that that the limits of the share
capital are lowered from not less than SEK 125,000,000 and not more than SEK
500,000,000 to not less than SEK 90,000,000 and not more than SEK 360,000,000.
•A share split, by which every existing share is split into four shares, of
which one  will be a redemption share.
•Reduction of the share capital for the purpose of repayment to the shareholders
by the reduction of 25,000,000 redemption shares.
•Increase of the share capital by SEK 37,500,000 by way of a bonus issue, for
which the company's non-restricted equity will be used.

Employee incentive program
The resolution of the Annual General Meeting principally implies that the
company will issue a maximum of 172,000 employee options for repurchased shares,
of which each option will entitle the holder to acquire one share in the
company. A share will be transferred at a price equivalent to 120 per cent of
the average volume weighed purchase price of the share in the company during a
period of ten banking days from 7 - 21 May 2007. The employee options may be
exercised as from 1 June 2010 up to and including 31 May 2011. The employee
options are free of charge and shall be allotted to the Managing Director, group
executives and division executives. Approximately 30 persons are comprised by
the program. The allotment is subject to an improvement of the profit per share
during 2007 in relation to the preceding year. There will be no allotment if the
improvement is less than 5 %. Maximal allotment is obtained at an improvement of
more than 10 %. At an improvement between 5-10 %, the allotment shall be granted
pro rata. The Managing Director, who will receive the largest allotment, may be
allotted a maximum of 15,000 employee options. Other members of the group
management may be allotted a maximum of 10,000 employee options per person.
Members of division management may be allotted a maximum of 5,000 employee
options per person. Full exercise of the employee options presupposes continuous
employment up to and including December 2009. The employee options shall however
have a cap, implying that the profit can be equivalent to a maximum of 100 % of
the redemption price. This means that, if the market value of the shares at
exercise should exceed 200 % of the redemption price as mentioned above, the
redemption price which the holder is obliged to pay shall be correspondingly
adjusted upwards. 

Election Committee
The Annual General Meeting resolved to amend the instruction regarding the
nomination process of the Election Committee, entailing inter alia that the
establishment of the four largest shareholders, based on votes, shall be based
upon the shareholding information in the VPC AB register as per the last banking
day of August every year, and that the Election Committee shall have mandate to
alter the composition of the Committee, in the manner that the Committee finds
appropriate, should the shareholdings in the company change before the Election
Committee has completed its work.

Report of the President and CEO
President and CEO Lars Engström summarized fiscal year 2006: 
• Strong development
- Favourable growth in all divisions
- Improved Gross Margin 
- Very favourable development of the operating margin in Dehumidification and
HumiCool
- Strong operating cash-flow
• Resumed acquisition driven growth strategy - one acquisition
• Munters has benefited from a number of global trends, and is striving towards
a further strengthening of  position within these areas
- Increased environmental awareness and needs of more efficient use of energy
- Increasing demands of indoor climate 
- Stricter regulations within food handling 
- Consolidation of the insurance industry and long-term  forms of co-operation
(frame agreements)
- The economic expansion in Asia 

Further the CEO continued with a short presentation of the result from the first
quarter 2007, published earlier during the day:   

• The order intake increased by 5 percent adjusted to 1 527 MSEK (1 515). 
- Mild winter affected MCS negatively compared to 2006 
- Continued strong growth in Dehumidification and HumiCool  
• Net sales increased by 5 percent adjusted to 1 404 MSEK (1 386). Excluding
sales in MCS related to hurricanes during the first quarter 2006 (75 MSEK), the
Net sales increased by 11 percent adjusted.
• Operating margin increased 0,5 percentage points to 9,0% 
• Net earnings amounted to 78 MSEK (71).
• Acquisition of Des Champs Technologies, active in energy-efficient systems for
climate control in commercial premises.


For further information, please contact:
Lars Engström, CEO Tel: +46 8 626 63 03 Mob: +46 70 228 85 19
Jonas Samuelson, CFO Tel: +46 8 626 63 06 Mob: +46 70 626 63 79
Sören Sjöström, VP Corp. Communication Tel: +46 8 626 63 08 Mob: +46 70 600 22
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Munters is the world leader in humidity control with services and products for
water and fire damage restoration, dehumidification, humidification and air
cooling. Customers are served in a wide range of segments, the most important
being insurance-, utilities-, food-, pharma- and electronics-industries.
Manufacturing and sales are carried out via the Group's own companies in 30
countries. The Group has around 3,600 employees and net sales of SEK 5,712
million. Munters is listed on OMX Nordic Exchange. For more information see
www.munters.com