SUCCESSFUL START TO THE YEAR

SUCCESSFUL START TO THE YEAR

• Sales rose by 17.3% via organic growth to reach SEK 469.8 million (400.3 m)

• The profit after tax was SEK 31.5 million (25.8 m) 

• The EPS was SEK 1.62 (1.48) 

• The operating profit after depreciation (EBIT) improved by 23.8% to SEK 45.2
million (36.5 m), providing an operating margin of 9.6% (9.1)

• Semcon underpinned its international presence with the acquisition of IVM
Automotive in Germany on 1 April

SUMMARY

Sales reached record levels and results are our best ever. We have continued to
take market shares and improved our profitability. Behind the good results is a
period of strong demand. Among others, the Zpider business area showed a major
sales hike of over 50%. 

We are following the plan of our strategic positioning. Semcon carried out its
biggest acquisition so far during the period with the acquisition of IVM and
started a partnership with Jaguar/Land Rover in the UK for developing
aftermarket information. 

Further establishment on new markets occurred with Semcon opening offices in
Finland and the US. Zystems, which works with system integration, has seen
success in the US with its first customers using the Baseline concept. In
addition, our interactive firm Zooma received a lot of attention in the US when
it received four awards at the American Web Marketing Association's annual IAC
Awards (Internet Advertising Awards) for best online campaigns.

Through the acquisition of the German technology firm IVM Automotive we have
gained a strong, supplementary international customer base with major growth
potential. We also become one of the three biggest European suppliers of
development services to the automotive industry.

This international expansion is in line with Semcon's future plans. While we are
meeting demands for an international presence we are also working towards
profitable growth. The automotive industry is currently facing extensive
development projects with huge demands for new models and platforms. We now have
greater opportunities to take advantage of the major development assignments
that companies are outsourcing to partners.  

Semcon is continuing to streamline its business, including dividing up the
Design & Development business area into Automotive R&D and Design & Development.
This gives the businesses greater opportunities to focus on their respective
customer groups and industries. 


FUTURE PROSPECTS

Semcon's plans for the future are unchanged. We will continue to focus on
profitable growth, internationalisation and greater efficiency. A lot of energy
will be spent in the near future on integrating IVM, with the spotlight on
business and expansion opportunities. IVM will show lower margins in 2007 than
Semcon, before the acquisition. No affects on profits are expected for the
Group's EBIT level in 2007.
2007 has started very positively and we expect the market's good business cycle
to remain unchanged. The full effects of the acquisition of IVM and Informatic's
partnership with Jaguar/Land Rover plus the GM order to our business partner ESG
will only first be seen in 2008.