Interim report January - March 2008 HL Display AB (publ)

*   Net sales amounted to MSEK 383 (391) during the first three
  months of the year.
*   Operating profit for three months was MSEK 31 (37) and profit
  before taxes was MSEK 28 (38).
      Net profit was MSEK 20 (26).
*   Earnings per share after dilution was SEK 2.62 (3.33).
*   Net sales for the latest 12-months amounted to MSEK 1 564 (1 497)
  and net profit after taxes was
      MSEK 155 (122).
*   Decision about split 4:1 with record date April 28, 2008.

Net sales and earnings for the first quarter 2008
The consolidated sales for the first quarter amounted to MSEK 383
(391). This is a decrease of 2 per cent compared with the same period
in 2007 that was an unusually strong first quarter. The change in the
value of the Swedish krona in relation to export currencies and in
comparison with the previous year had no effect on sales.

Net sales for the period have not met expectations in total. Several
of HL Display's important markets in Western Europe have declined.
The sales companies that was restructured in the beginning of 2007
(among others the UK) has not yet reached expected sales levels. On
the positive side Eastern Europe - in particular Russia - as well as
Asia continuously shows satisfying growth. Also note that Easter,
that affects both orders and deliveries, took place during quarter
one this year in comparison with 2007 when it affected quarter two.

The operating profit for the first three months of the year was MSEK
31 (37) and profit before taxes amounted to MSEK 28 (38). The change
in the value of the Swedish krona in comparison with last year had apositive effect on operating profit of MSEK 1. Net interest for the
period amounted to MSEK -1 (-2), while rates of exchange differences
and other currency effects amounted to MSEK -2 (3). HL Display's most
important export currencies are the Euro, the British pound and the
Russian rouble. Gross margin has improved due to an advantageous
product mix and price increases accomplished from the beginning of
the year. Raw material prices have been continuously high during the
first quarter. The efficiency improvements in the factories have
however well counteracted negative effects on the result. Operating
expenses has increased compared to previous year. Approximately 6
MSEK is relating to new subsidiaries as well as to expansion of sales
companies on growth markets, and around 3 MSEK is relating to
non-recurrent cost for EuroShop (see below).

Participation on EuroShop
The world's largest retail trade fair, EuroShop, took place in
February. HL Display participated as one of the exhibitors with more
than 100 co-workers present daily during the week-long fair,
representing HL Display's 46 markets. EuroShop is arranged every
third year and had this year totally 1 911 exhibitors from 50
countries and 104 000 visitors from 90 countries. The fair's total
area covers 107 100 square meters.
HL Display's 400 square meters display both was well-visited and
showed the latest innovations and unique conceptual shop-solutions.

New sales company
During the first quarter HL Display's former distributor in Bulgaria
was acquired.

Investments
During the first three months net investments in fixed assets
amounted to MSEK 9 (32). Net investments in 2007 included the
acquisition of Display Team. Scheduled depreciation amounted to MSEK
9 (10).

Financial position
Liquidity as at 31 March 2008 amounted to MSEK 164 (138) and was MSEK
177 at the beginning of the year. The interest-bearing net liability
that was MSEK 49 at the beginning of the year was on the balance day
MSEK 41 (-62). A dividend of MSEK 43 has been decided but not been
paid yet. Cash flow from operating activities decreased to MSEK -5
(41), primarily depending on decreased trade and other payables.
Operating cash flow was SEK 0.50 (6.84) per share. The equity/assets
ratio at the balance sheet date amounted to 56 (44) and was 53 per
cent at the beginning of the year.

Personnel
The average number of employees during the period was 977 (949). The
number of employees on the balance sheet date amounted to 974 (956)
and was 972 at the beginning of the year.

Information on risks and uncertainty factors
Fluctuations in raw material prices and exchange rates constitute
uncertainty factors but not considerable risks. Reference is made to
the risk and sensitivity analysis on page 32 of the 2007 annual
report for a more detailed description of the risks and uncertainty
factors that HL Display faces.

Parent company
The parent company's profit after net financial items for the first
three months of 2008 amounted to
MSEK -25 (-22). No significant changes have been noted to affect the
profit or balance sheet calculations.

Annual general meeting
The Board's proposal for dividend for 2007 amounting to SEK 5.50
(3.50) per share was resolved by the AGM that was held April 2, 2008.
The AGM also resolved to increase the number of shares in the company
through a share split in which each old share will entitle to 3 new
shares (4:1). Record date will be April 28, 2008. Anna Ragén and
Lars-Åke Rydh were elected new board members and Lis Remius resigned.
For information about further decisions reference is made to separate
press release or the company's home page.

Prospects for the rest of 2008
As previously announced the organic growth 2008 is expected to reach
the interval of 5-10 percent, which is the company's long-term goal.
Like in latest years, profitability will be prioritized. Further cost
reduction is planned.
HL Display plans to strengthen the company's offering and market
position through further acquisitions.

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

This interim report has not been reviewed by the company's auditors.

The Board and the Managing Director hereby certifiy that the interim
report gives a fare view on the business, position and result for the
group and the parent company. It also describes essential risks and
factors for unsecurity that the parent company and the companies that
form the group are facing.

Stockholm, April 15th, 2008

Anders Remius
Chairman of the Board

Jan-Ove Hallgren
Member of the Board

Stig Karlsson
Member of the Board

Mats-Olof Ljungkvist
Member of the Board

Åke Modig
Member of the Board

Anna Ragén
Member of the Board

Lars-Åke Rydh
Member of the Board

Magnus Jonsson
Member of the Board, Employee Repr.

Kent Mossberg
Member of the Board, Employee Repr.

Gérard Dubuy
Member of the Board, Managing Director and CEO

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