RaySearch Laboratories AB (publ) Interim Report, January 1-March 31, 2007

RaySearch Laboratories AB (publ) Interim Report, January 1-March 31, 2007

•  Net sales for the period amounted to SEK 16.1 M (15.5) 
•  Profit after tax was SEK 5.2 M (5.3) 
•  Earnings per share after tax amounted to SEK 0.46 (0.47)
•  Operating profit amounted to SEK 7.1 M (7.3)
•  Cash flow from operating activities was SEK 13.4 M (12.2)

Johan Löf, President and CEO of RaySearch Laboratories AB, comments on the first
three months of the year as follows:

 “It is highly pleasing that today we can announce that RaySearch Laboratories
and Varian Medical Systems have signed a long-term collaboration agreement to
develop advanced radiotherapy treatment planning of cancer. Varian Medical
Systems is the leading supplier of equipment for radiation treatment and we now
gain access to the company's large customer installed base.

	The collaboration involves developing a number of products, the first of which
is expected to be available on the market next year. The products will be
integrated into Varian's Eclipse™ treatment planning system. 

	The Varian-RaySearch collaboration agreement involves radiobiological
evaluation and radiobiological optimization of treatment plans for standard
photon/electron radiotherapy, intensity modulated radiation therapy (IMRT) and
proton therapy, as well as optimization of conventional 3-D CRT. The agreement
is among the most important events in RaySearch's history. Reaching an agreement
with such a large and significant player as Varian is a definitive confirmation
that our technology platform is state-of-the-art.

	Net sales in the first quarter rose 4 percent compared with the year-earlier
period and amounted to SEK 16.1 M. At unchanged exchange rates, the sales
increase would have been 13 percent. We can note that the number of licenses
since the start of RaySearch surpassed 3,000. Support revenues increased during
the first quarter by 35 percent to SEK 4.0 M. The company has a strong financial
position, with highly favorable liquidity and a solid cash flow.

	We are facing a sharp expansion of operations within a number of new
application areas, such as adaptive radiotherapy and radiation treatment with
protons. Accordingly, a comprehensive recruiting effort was initiated in the
first quarter. A total of approximately 20 persons will be employed and we have
received more than 450 applications. Primarily, this involves strengthening
within research and development with more system developers, mathematicians and
radiation physicists. Through this recruitment, we will be increasing the number
of employees by 60-70 percent.

	We are looking forward to some important launches during the year. The
agreement with Philips in adaptive radiation therapy aims to develop a suite of
three products. The plan is for the first product, p-RayAdaptive/IGRT to reach
the market during the second half of 2007. In the cooperation regarding quality
assurance within IMRT between RaySearch and Scanditronix-Wellhöfer, three new
products will also be developed. The first two, i-RayDose and i-RayMonitor, are
under development and will be launched in the second half of 2007. We are also
conducting significant development work within proton and carbon-ion therapy, a
large future area in radiation therapy. This work will result in an innovative
treatment planning system for treatment with protons and carbon ions.

	Philips and Nucletron, two large players on the market, are already our
partners. Now with the addition of Varian, we have collaboration agreements with
three of the four companies that together account for the absolute largest share
of sales globally in treatment planning systems. Our product portfolio is
expanding continually and the collaboration with Varian is highly welcome to
further strengthen RaySearch's position.” 


Stockholm, May 8, 2007

RaySearch Laboratories AB
Johan Löf, President and CEO

For further information, contact:
Johan Löf, President and CEO
RaySearch Laboratories AB 
Telephone: +46 (0)8-545 061 30
johan.lof@raysearchlabs.com