Interim report January - March 2007 HL Display AB (publ)

*       Net sales for the first quarter amounted to MSEK 391 (342).
*       Operating profit for the quarter was MSEK 37 (22) and profit
  before
     taxes was MSEK 38 (20).
*    Net profit for the first quarter was MSEK 26 (13).
*    Earnings per share after dilution was SEK 3.32 (1.73) for the
  quarter.
*    During the past 12-month period the Group's net sales amounted
  to
      MSEK 1 497 (1 344) and profit before tax to MSEK 110 (77).
*    Acquisition of Display Team.
*    Close down of Pictoria factory in Falkenberg.

Net sales and profit
Group sales amounted to MSEK 391 (342) for the first quarter, an
increase of 14 per cent as compared to 2006, whereof 11 per cent
organic growth. Changes to the exchange rate of the Swedish Crown as
against export currencies has, in comparison with previous year,
affected turnover in a negative manner to the amount of MSEK 8.6.

The operating profit for the first quarter was MSEK 37 (22) and
profit before taxes amounted to MSEK 38 (20). Changes to the exchange
rate of the Swedish Krona as against HL Display's export currencies
has, in comparison with previous year, affected operating profit in a
negative way to the amount of MSEK 4.5.
The period's net interest was MSEK -2 (-3) while translation
differences and other currency effects totalled MSEK 3 (0). HL
Display's most important export currencies are EUR and GBP.

During the first quarter 2007, sales growth has exceeded
expectations. One explanation is the delayed deliveries from December
to January resulting in unusually high turnover at the start of the
year.

Raw material cost continues to record historically high levels.

Acquisition of Display Team Oy
On January 31, 2007, 100 per cent of the Finnish company Display Team
Oy, which manufactures and markets shelf-merchandising solutions, was
acquired. The purpose of the acquisition is to strengthen the
position of HL Display in the customer segments of Brands and Non
Food.
Display Team's net sales for the financial year ending February 28,
2007 reached MSEK 54. The acquisition has been consolidated since
February 1 and has for the two months contributed to consolidated net
sales with MSEK 11 and to consolidated operating profits with around
MSEK 1.1)

Closing down of the Pictoria factory
During the quarter it was decided that production of metal display
frames in Falkenberg will be closed down and 14 employees has been
given notice. The assortment (Pictoria) will in the future be
produced by an external part. The closing down will only have
marginal effects on the consolidated profits.

Other actions for improved profitability
Profitability is being prioritized before growth. Several measures to
rationalize and improve efficiency are underway. The range reduction
project that will increase the share of standard products is expected
to generate positive results gradually in 2007. The restructuring of
the German sales company is finalised with promising results so far.
The move of the regional service centre from Bergen op Zoom in
Netherlands to France is finalized.

Investments
Net investments in non-current assets amounted to MSEK 32 (11) in
2007, whereof investment in subsidiaries was MSEK 24. Depreciation
according to plan was MSEK 10 (11).

Financial position
Liquidity was MSEK 138 (64), at the beginning of the year MSEK 163.
Interest-bearing net liability decreased to MSEK 62 (115), at the
beginning of the year MSEK 40. Dividend of MSEK 27 (23) has among
other things affected the cash flow during the period. Cash flow from
operating activities increased to MSEK 41 (17). Operational cash flow
was 6.84 (2.13) SEK per share. The equity/asset ratio on the balance
sheet date was 44 per cent (44), at the beginning of the year 44 per
cent.

Personnel
The average number of employees was 949 (910) and 956 (906) at end of
the period. At the beginning of the year the number of employees was
947.

Annual General Meeting
The Board's proposal of a dividend for 2006 of SEK 3.50 (3.00) per
share was approved by the Annual General Meeting that was held on the
14th of March 2007. The meeting also decided to issue 64,000 warrants
intended to be offered to HL Display's group management. For more
details on decisions, please see the separately issued press release.

Business Target
HL Display's overall objective is to be a market leading growth
company with good profitability and to increase growth in value for
shareholders. Profitability must be prioritised. The financial
objective is a sustainable profit margin of 10 per cent.

Outlook for 2007
In the Nordic countries and in Western Europe, HL Display has its
largest markets. The markets are characterized by limited growth and
a high degree of competition. This is why the last few years' market
investments have been directed to Eastern Europe and Asia.
HL Display will actively investigate the possibilities to boost the
company's offer and market position through acquisitions. Like in
latest years, profitability will be prioritized and the financial
objective of 10 per cent profit margin is within reach. For 2007 HL
Display is not expecting to see the same sales growth as in 2006.

A detailed forecast will, as usual, be presented in the nine-month
interim report.

For the Board of Directors:
Stockholm, April 17th, 2007

Gérard Dubuy
Managing Director and CEO

The full report incl tables can be downloaded from the enclosed link.