Interim Report 6 months 2007/08

12/17/2007 1:57 AM EST

* Net sales for the period were SEK 158.6m (45.9m)
* The company reports an operating loss after tax of SEK –26.3m (–18.5m)
* Earnings per share were SEK –0.19 (–0.17)
* On the balance sheet date, October 31, 2007, cash and cash equivalents were SEK 148.9m (Apr 30, 2007, 186.5m)
* Cash flow from operations increased to SEK 23.6m (–9.5m), or SEK 0.17 per share (–0,08)

Significant Events in the last Quarter
* The company received volume orders for flow plates for fuel cells used in consumer electronics worth SEK 60m over a two-year period
* Morphic acquired 55% of Helbio S.A., an energy technology company
* SensActive™ patented
* President and several key individuals recruited to Morphic’s subsidiary for new energy systems

Significant Events after the End of the Period
* Volume orders for flow plates with an initial value of SEK 130m
* Acquisition of fuel cell maker Arcotronics Fuel Cells S.r.l
* Private placement raises SEK 252m before issue costs