Positive start to 2007

The NKT Group's companies made a good start to 2007 in terms of both revenueand earnings. Development has been very satisfactory and prospects for the yearhave been revised upwards. The NKT Group's 1st quarter revenue was 3,130 mDKK (+30% compared with lastyear) and operating income (EBIT) was 191 mDKK (+54% compared with last year).Earnings capacity continues to rise, and an EBITDA margin of 8.2% was realised,as against 7.3% in the same period last year. Pre-tax profit was 160 mDKK, asagainst 110 mDKK last year, an increase of 45%. Overall organic growth for the NKT Group was 14%. This advance was attributableto continuing high levels of organic growth in NKT Cables (21%),Nilfisk-Advance (8%) and also NKT Flexibles (54%). The NKT Photonics Group isprogressing as planned. Development was therefore very satisfactory. After the end of the quarter - in April and May - we implemented a number ofinitiatives having relation to the strategic expansion of NKT's companies; inChina we entered into agreement concerning acquisition of a leadingmanufacturer and supplier of cleaning equipment, while in Germany, UK andDenmark, several small acquisitions were made that support the businessplatforms of the NKT Cables Group and the Nilfisk-Advance Group, respectively(see report of group companies starting on page 4). Prospects for 2007 revised upwardsForecast revenue for the year has increased from around 12.7 bnDKK to around13.2 bnDKK, and earnings before tax has increased to around 850-900 mDKK, asagainst 800-850 mDKK forecast previously.