Press release from Bong Ljungdahl AB

7/4/2001 11:02 AM EST

The cyclical weakening in demand that we have noted for some time,
intensified and spread further geographically during the second quarter
of 2001.The European envelope market is estimated to have declined by
some 6 per cent in volume during the first half of 2001 in relation to
the same period last year.

Bong's sales have been adversely affected, and are provisionally
estimated to have amounted to some MSEK 1,250 (1,176) for the first six
months of 2001. This is an increase of approximately 6 per cent in value
terms, although it represents a decline in volume of some 8 per cent for
comparable units.

This shortfall in sales will have a relatively serious impact on
profitability, and the profit for the second quarter will be
significantly lower than for the corresponding period in 2000. We expect
economic conditions to remain weak, which will have a further negative
effect on sales during the second half of 2001. The profit for 2001 as a
whole is therefore expected to be significantly less than last year's.

The far-reaching restructuring of the Group's production facilities
during the first half-year, which has significantly lowered the Group's
efficiency and productivity during the transition period, is now
virtually completed and the production capacity is now approaching the
planned level.

A complete report for the first half of 2001 will be published on August
17.

Kristianstad July 4, 2001
Lennart Pihl
President and CEO

For further information, please contact Lennart Pihl, President and CEO
Telephone: +46 70 594 68 66


Bong is a fast expanding international envelope company. The Group has
an annual turnover of some MSEK 2,500 and around 1,900 employees. It has
an annual production of some 16 billion envelopes at factories in
Sweden, Denmark, Norway, Finland, Germany, Great Britain, Ireland,
Belgium, Poland and Estonia. In recent years, Bong has played an active
part in the current process of restructuring in the European envelope
industry and sees significant potential for further expansion and
development. Bong is a public company and its shares are listed on the
OM Stockholm Stock Exchange's Attract 40 list.