Sectra's half-year report, May-October 2002/2003 fiscal year: Sectra's positive development continues

12/10/2002 2:50 AM EST

Sectra's half-year report, May-October 2002/2003 fiscal year:
Sectra's positive development continues

Sectra reports increased order bookings, sales and profits for the first
half of the 2002/2003 fiscal year. Compared with the corresponding
period of the preceding fiscal year, order bookings rose 37 % to SEK
235.5 million (171.5) and sales rose 85 % to SEK 266.7 million (144.2).
Pretax profit amounted to SEK 35.7 M (15.9), corresponding to a profit
margin of 13 %. Earnings per share rose to SEK 0.73 (0.34).

"Sectra's positive development is continuing," comments Jan-Olof Brüer,
Sectra's President and CEO. "This derives from our having finalized
several major hospital projects and from increasingly successful sales
of our eavesdrop-secure GSM telephone in international markets."

Sectra's goal is to gradually expand internationally, with initial focus
on Western Europe and North America. To increase the company's
international sales, Sectra is cooperating with partners that already
have a solid customer base in these markets. One example is the
successful cooperation with Philips Medical Systems, which recently has
been extended for another five year period.

"Sectra's technology is contributing to improvements and greater
efficiency in radiology operations throughout the world, by our own
management as well as through our partners," continued Jan-Olof Brüer.

During the most recent quarter, Sectra opened an office in the UK to
meet increasing demand in the British market for digital radiology
systems. Within medical systems, Sectra has also entered into
cooperations with several smaller distributors in Europe and the US.

"By expanding our cooperation through partnerships, we reach a larger
market with our products," continues Brüer. "This type of cooperations
is an important complement to our existing sales channels within medical
systems."

Operations within secure communications systems are increasingly marked
by the international trend toward a completely new defense structure,
using network-based information processing. Sectra has secured a number
of orders linked to the production of demonstration models for defense
forces of the future. The company has also obtained an order from the
Swedish Defense for a new high-speed encryption system for international
use and its cooperation with Norwegian partner Kongsberg has resulted in
several new orders.

"Through Kongsberg, we have received orders during the past quarter for
our eavesdrop-secure mobile phone from the Dutch and Czech armed forces,
and from NATO," says Jan-Olof Brüer.

The market for wireless information systems has been adversely affected
by the general market conditions, with low investment volumes in both
the financial market and the aerospace industry.

"Operations within wireless information systems are currently being
restructured to reduce costs and we have also made cuts in the
workforce, primarily to move personnel to other areas of our business,"
continues Brüer.



"Sectra has a strong technology platform. Our solutions are aimed at
growth markets. Our strong home market provides us with a stable base
for international expansion. Therefore, it is our evaluation that Sectra
will continue to expand with favorable profitability," concludes Jan-
Olof Brüer.

For further information, please contact:
Sectra AB, Dr. Jan-Olof Brüer, President and CEO, +46 13 23 52 09,
 

Visit Sectras website http://www.sectra.com

Sectra's operations
Sectra has its roots in Linköping Technical University and is one of
Sweden's fastest growing high-tech companies in the IT area. Since the
mid-1980s, Sectra has successfully conducted development and sales of
high-technology medical IT and telecommunications products. Today, the
business includes products in medical systems, secure communication
systems and wireless information systems.

Business is conducted in seven countries with a total of 260 employees.
Sales for the fiscal year May 2001-April 2002 reached SEK 426 million.
Since March 1999, Sectra's shares have been quoted on the O list of the
Stockholm Exchange.