Accelerating growth for Care Electronics, now 33 per cent of Doro first half year sales

Accelerating growth for Care Electronics, now 33 per cent of Doro first half
year sales

•	Sales amounted to SEK 139.5 million (SEK 151.2 m)

•	Loss after tax was SEK 3.7 million (SEK +1.1 m) 

•	Earnings per share after tax was SEK -0.21 (SEK 0.06) 

•	Order intake has increased significantly during second quarter compared to
first quarter, with expected positive effect on third quarter sales

•	The cash flow from operations for the first half year was SEK -27.3 million
(SEK -30.3 m) following seasonal pattern and introduction of new products within
Care Electronics

•	Continued strong sales growth in Care Electronics business unit, which
represents 33 per cent of total sales

•	Lower sales for Home Electronics as market continues to decline according to
expectations 

•	Launch of two new mobile phones HandleEasy 328gsm and 330gsm and an innovative
amplified cordless phone HandlePlus 318w


Comments by the CEO, Jérôme Arnaud  

“Care Electronics' sales continued to show strong growth during Q2, climbing by
almost 300 per cent and the business unit now accounts for some 40 per cent of
total sales. In June this figure was 47 per cent of total sales. 
The HandleEasy 328gsm and HandleEasy 330gsm mobile phones are being launched
successfully across Europe.  During the second half of 2008 this trend is
expected to continue on the back of marketing efforts and the launch of new
products for senior citizens. The market for easy-to-use mobile phones adapted
to a senior target group continues to grow as the awareness of their
availability and ease-of-use increases. 

According to what was communicated in the Q1 report, this development has not
yet offset Home and Business Electronics' lower sales figures. Lower sales
combined with higher marketing and sales costs for introducing new mobile phones
in Care Electronics, resulted in a pre tax loss for Doro of SEK 4.3 million for
the second quarter.

During the second half of 2008 we will continue to build our Care Electronics
business.  In Home Electronics we will focus on the launch of new products to
offset market decline. In Business Electronics we anticipate improved sales of
our new range of VoIP products having strengthened our sales force”.
Sales 
Doro had sales of SEK 68.1 million (SEK 72.5 m) in Q2 and SEK 139.5 million (SEK
151.2 m) during the first half year. The lower sales follows forecasted sales
trends in Home and Business Electronics. Care Electronics continues to show
strong growth and increased its sales by almost 300 per cent compared to Q2 last
year, and by over 200 per cent during the first half year. Care Electronics
sales thereby represented 40 per cent of total sales for the second quarter and
33 per cent of total sales for the half year. 


Operating profit - EBIT
The operating loss before tax and financial items for the second quarter was SEK
4.3 million (SEK -0.2 m) and for the half year SEK 3.7 million (SEK +1.1 m). The
gross margin improved due to the increased sales mix of Care Electronics'
products with higher margins. The weakened US dollar had a positive effect on
margins.


Cash flow, investments and financial position
The cash flow from operations during the second quarter was SEK -10.0 million
(SEK -16.3 m) and for the half year SEK -27.3 million (SEK -30.3 m), due to
seasonal pattern and higher working capital required by Doro´s new product
launches in Care Electronics.  Investments during the second quarter amounted to
SEK 1.3 million (SEK 1.3 m) and SEK 2.8 million (SEK 1.3 m) for the half year.
At the close of the period Doro had bank loans of SEK 35.7 million, and the
company had SEK 60 million in total pre-agreed credit facilities including
factoring as of 30 June 2008. The equity/assets ratio was 25 per cent (23) at
the end of the period.


Business units
Doro has three business units: Home Electronics, which is mainly home telephony,
representing 51 per cent of sales during the second quarter (74 per cent in Q2,
2007), Business Electronics, mainly specialising in business telephony, 9 per
cent of sales during the second quarter (17 per cent in Q2, 2007) and Care
Electronics, which specialises in telecoms and electronic products for senior
citizens, 40 per cent of sales during the second quarter (9 per cent in Q2,
2007). 

Home Electronics
During the first half year sales fell for comparable units by 21 per cent to SEK
77.3 million (SEK 97.7 m) although only by 6 per cent in volume. Due to
rationalization, product mix and currency effects, margins rose compared to the
same period last year. The negative sales trend followed the general decline of
the market. However, at the end of the second quarter demand improved.

Business Electronics
During the first half year Business Electronics had sales of SEK 15.5 million
(SEK 22.2 m). The introduction of new ranges of VoIP (Voice over IP) products
during Q1 has been slow and therefore Doro has strengthened the sales force. A
more positive sales figure for VoIP products is forecasted for the second half
of 2008.

Care Electronics
During the first half year Care Electronics increased its sales to SEK 46.7
million (SEK 15.1 m) - a rise of more than 200 per cent. This strong growth is
mainly driven by the success of easy-to-use mobile phones. Sales were
particularly strong in the Nordic region and in the UK. 

In addition to the two latest additions to the product portfolio, the Doro
HandleEasy 328gsm and HandleEasy 330gsm, Doro also introduced an innovative
amplified cordless phone HearPlus 318w, emphasizing the need for strong
ergonomic features for elderly.

In July, Doro was presented in the American business magazine “BusinessWeek” as
one of the winners of IDEA®, the American design award. It is one of the most
prestigious prizes in the world, with only top-class international designs
receiving recognition. This year, five of Doro's Care Electronics products have
won bronze in the “Communications products” category. 

Regions
Doro's three regions are Mainland Europe (43 per cent of sales for the first
half year), Nordic (40 per cent) and UK and Ireland (17 per cent).   

Mainland Europe
Sales fell by 11 per cent during the first six months of 2008, as sales still
have a higher proportion of Home products compared to Nordic region.

Nordic region 
Sales fell by 4 per cent. The continued strong sales increase of mobile phones
within Care Electronics has almost offset the declining sales in Home
Electronics. 

UK and Ireland
Sales by all business units progressed well and rose by 63 per cent in the UK
and Ireland region through listings with key distributors. Due to the strong
sales increase, Doro has gained market share in the UK.

Personnel
The headcount was 56 at the end of the period. 27 are based in Sweden, 17 in
France, 4 in the UK, 4 in Norway and 4 in Hong Kong.

Doro has recruited Annette Borén as the company's new Chief Financial Officer.
Annette Borén will replace Stefan Sjölin, as CFO of Doro on 17 October 2008. She
has extensive financial experience and for the past three years has worked at
Länsförsäkringar Skåne as Financial Director. She has an MBA from Lund
University. 

Doro's shares
Doro is listed on the OMX Nordic Exchange Stockholm Small Cap - Telekom/IT.

Eight key employees bought 130,000 shares in the company from DO Intressenter as
of 7 January 2008.

Parent company
The parent company's net sales for the first half year amounted to SEK 59.5
million (SEK 5.3 m). Doro Nordic AB, the former sales company, merged with the
parent company Doro AB on 1 January 2008. The loss before tax was SEK 9.3
million (SEK -27.9 m).

Outlook
The gradually increased proportion of Care Electronics, as part of total Doro
sales combined with the improved total order intake, is anticipated to improve
the result for second half of 2008 compared to the same period previous year. A
continuous strengthening of the US dollar may adversely affect the gross margin.

Risks
Doro's risks and instability factors are mainly related to supplier disruption,
customer relations and currency exchange rate fluctuations. Apart from these
risks and instability factors, which are described in the Annual Report 2007 on
pages 24, 41 and 42, no other risks of any significance have been identified
during the last period.

Accounting principles
For the Group, this interim report is prepared according to IAS 34, Interim
Financial Reporting, and the Annual Accounts Act and for the parent company,
according to the Annual Accounts Act.

Future reports and events

Quarterly reports
The Board has decided the following dates for the quarterly reports:
January-September 2008: 23 October 2008
January-December 2008: 4 February 2009

The quarterly reports are available at Doro's website: www.doro.com

This quarterly report has been drawn up in accordance with the same accounting
principles as the last annual report, and has not been subjected to a review by
the company's auditors.

Information disclosed in this press release is provided herein pursuant to the
Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading
Act.

Lund, 20 August 2008 - 08.30 

The Board Doro AB (publ) 
Co. Reg. No 556161-9429
Doro is listed on the OMX Nordic Exchange Stockholm Small Cap - Telekom/IT



Information 

For further information, please contact:
CEO Jérôme Arnaud, +46 46 280 50 05 

Director Marketing, Fredrik Forssell +46 46 280 50 80

Magistratsvägen 10
SE-226 43 Lund, Sverige
Telefon: +46 46 280 50 60
www.doro.com

The Board and CEO confirm that this interim report provides a fair overview of
the company´s and Group´s business, position and results and describes the
significant risks and uncertainties faced by the company and the Group
companies.

Bo Kastensson			
Chairman of the Board

Jérôme Arnaud			
CEO

Peter Blom
Board member

Tomas Persson			
Board member

Jonas Mårtensson
Board member 


For further information, please contact:
CEO Jérôme Arnaud, +46 46 280 50 05 
Director Marketing, Fredrik Forssell +46 46 280 50 80

About Doro

With over 30 years' experience in telephony Doro is today characterised by
innovative and user-friendly consumer electronics products. The company develops
markets and sells a wide range of products in three business units: Home
Electronics, Business Electronics and Care Electronics. The company's products
are sold in more than 30 countries worldwide through a variety of retail
outlets, including electronics stores, online stores and specialized channels.
The company had sales of SEK 346 million in 2007. Doro's shares are quoted on
the Stockholm Stock Exchange, Nordic list, Small companies. Read more about Doro
at www.doro.com.