Measures within Orrefors Kosta Boda AB, new financing agreement and revised forecast

Measures within Orrefors Kosta Boda AB

New Wave Group AB and Orrefors Kosta Boda AB (OKB) has decided to initiate trade
union negotiations concerning extensive measures within OKB in order to create
conditions for an immediate and long term profitability in the company. New Wave
Group AB has during the years 2008-2012 covered losses in OKB in approx. 300
MSEK. With the present economic uncertainty and economic development we don’t
see any possibility to achieve an acceptable profitability during a foreseeable
future without taking extensive measures. Additionally, the strong Swedish
currency has also had a negative impact on OKB’s exporting business. During the
period mentioned and including planned measures OKB has burdened the result of
New Wave Group with a total amount of approx. 512 MSEK.

The planned measures means that OKB is transformed into a design- and market
focused company which as organization is to a high degree similar to the other
companies and trademarks within New Wave Group. Included in the total measures
is an extensive review of OKB’s product assortment, pricing strategies and
purchasing channels. The company also plans an extensive change of strategy when
it comes to business model and trademarks and intends to increase its
investments in marketing.

As a consequence of the proposed measures OKB intends to reduce its workforce by
approximately 130 employees at the company’s places of business in Sweden
(Orrefors, Kosta and Åfors). The downsizing occurs mainly in production, but
other departments in the company will also be subject to cutbacks.

Estimated costs for the planned re-structuring within OKB will be reserved
during the third quarter 2012 in a total amount of approx. 212 MSEK. The
reservations affecting earnings are distributed between the following
preliminary main items.

Termination salaries etc.                                              40 MSEK
Write-down of stock                                                     109 MSEK
Write-down of real estate                                              20 MSEK
Write-down/retirement of machinery/inventories      20 MSEK
Write-down of trade receivables                                   18 MSEK
Other
costs                                                                          5
MSEK

Except for termination salaries, only 5 MSEK affects cash-flow. The Write-down
of stock corresponds to the estimated production value and purchase value for
the products in the new organization. After the write-down of real estates and
machinery/inventories these assets are almost fully written-down. The write-down
of trade receivables is related to OKB’s distributor in Greece. An amortization
plan is in place and securities exist for the claim in question and the write
-down is conducted as a pure security measure in case of an eventual deepened
Greek crisis or a possible Greek exit from the Euro-zone. Following this write
-down neither OKB nor the Group has any credit exposure in relation to the Greek
market.

Within OKB’s production the measures means that the company plans to discontinue
production at the glassworks located in Åfors and Orrefors. However, OKB will
offer both of these production facilities for sale.

The intention is to concentrate production to the glassworks located in Kosta,
which will continue to produce OKB’s premium products and art glass.

With planned changes New Wave Group estimates that OKB will achieve
profitability already starting from fourth quarter this year with additional
profit improvements during 2013 and continuing. The purpose is to secure OKB’s
and the trademarks ORREFORS’ and KOSTA BODA’s survival and to achieve sound
conditions for a positive development in the future. A target is also to secure
continued production of premium products and art glass in Sweden.

As a part of the planned measures Magnus Andersson has been appointed new CEO of
OKB and will start his employment on November 5, 2012. Magnus Andersson arrives
from the position as CEO of Nimbus Boats. He has previously been CEO of New Wave
Group’s subsidiaries Sagaform and OKB. Magnus has also been appointed manager of
the segment Gifts & Home furnishing within New Wave Group and will lead the re
-structuring work within OKB. The present CEO, Ann Gustafsson, will continue as
Chief Operating Officer at OKB.

New financing agreement

New Wave Group AB has, in connection herewith, signed a new group-level
financing agreement for three years with its bank providing a credit frame in
the total amount of 2,2 billion SEK.

Revised forecast for New Wave Group AB

New Wave Group AB has previously communicated the following forecast: “For 2012
we expect a higher turnover and a result around the 2011 outcome”.

The planned measures within OKB means that New Wave Group AB revises down the
forecast communicated earlier stipulating a higher turnover and a result around
the 2011 outcome. Hence, the Board of Directors of New Wave Group AB makes the
following revised forecast:

“For 2012 we expect a higher turnover and a result before tax around zero”

Press conference

A press conference will be held at 11:00 AM in Kosta at Kosta Boda Art Hotel in
the Glass bar, entrance opposite Kosta Outlet.

Göteborg, October 2, 2012

New Wave Group AB (publ)
Torsten Jansson
CEO and President
Tel: +46 (0)701-69 05 00

Because of upcoming information meetings with staff and press conference Torsten
Jansson might be difficult to reach before 1 PM today. For more information
please contact primarily:

Lars Jönsson, CFO
Tel: +46 (0)31-712 89 12

Göran Härstedt, Chairman of the Board of Directors, Orrefors Kosta Boda AB
Tel: +46 (0)703-62561