PartnerTech Interim Report January - June 2001.

Business Editors

STOCKHOLM, Sweden--(BUSINESS WIRE)--Aug. 14, 2001

PartnerTech AB (OMX:PART.) net sales was SEK 599.6 million (577.4). IT/mechatronics and medical equipment market segments continued to show solid growth, while telecom infrastructure experienced lower volumes.

The profit per share after full income tax, including items affecting comparability, was SEK -2,51(6.75). Excluding items affecting comparability the profit per share after full income tax was SEK - 0,59(4.62).

PartnerTech launched an action program aimed at tailoring resources to current volumes - the full impact is likely in the first quarter of 2002.

Market trends

While sales remained solid for the IT/mechatronics and medical equipment market segments, telecom infrastructure posted lower volumes again in the second quarter. Telecom infrastructure suffered from general uncertainty in the telecom industry, production changeovers for third- generation mobile telephony (3G) and the transition to the Global System for Mobile Communications (GSM) technology that is currently under way in the United States.

The discrepancies among the three segments in terms of volume growth altered their relative contributions to PartnerTech's sales. At mid- year, IT/mechatronics had accounted for 47%, and medical equipment for 15%, of total sales. Growth in these two segments offset the lower volumes in telecom infrastructure, which accounted for the remaining 38% at mid-year.

Action program

In response to lower volumes in the telecom infrastructure segment, PartnerTech in june decided to take on an action program. The program will have a steadily growing effect in 2000 and achieve its full impact in the first quarter of 2002, at which point costs will be adjusted to prevailing volumes. The income statement sets aside SEK 21.8 million in items affecting comparability to finance the program. The program is likely to entail staff reductions of around 100 people. Parallel to the notice, PartnerTech initiated a restructuring effort for the purpose of streamlining its production organization while sharpening its focus on customers and profitability.

Net sales, profit and profitability

For the first half of 2001, PartnerTech reported net sales of SEK 599.6 million (577.4), an increase of 4% from the same period of 2000. Volumes fell by 7% for comparable units during the first half of the year.

In addition to telecom infrastructure's substantial volume decline from the same period of 2000, the first half of 2001 was characterized by an altered sales mix and a large number of new products that entailed additional costs. As a result, PartnerTech's operating margin - excluding items affecting comparability - fell to 0.0% (9.5). Including items affecting comparability, the operating margin was -3.6% (13.4).

Excluding items affecting comparability, PartnerTech posted an operating profit of SEK 0.2 million (55.0) for the first half of the year. Including items affecting comparability, the operating profit was SEK - 21.6 million (77.4). The SEK -21.8 million in items affecting comparability primarily involved non-recurring charges associated with the action program. The non-recurring items of SEK 22.4 million for the same period of 2000 consisted of a pension refund from SPP.

Note to Editors: This press release is also accessible online at www.Waymaker.net.

The following files are available for download: http://www.waymaker.net/bitonline/2001/08/14/20010814BIT00720/bit0002.pdf