Solid progress in 2nd quarter 2007

Company release 18 - 2007The Nordic Stock Exchange Copenhagen23. August 2007Solid progress in 2nd quarter 2007 With continued growth in revenue and earnings in the 2nd quarter of the year,development was very positive for the whole 1st half of 2007. In relation toour expectations for Group earnings before tax, which after 1st quarter 2007were revised upward by 50 mDKK to around 850-900 mDKK, a basis now exists for amore precise prediction of around 900 mDKK. Group revenue for the 2nd quarter was 3,612 mDKK (+27% compared with last year)and operating income (EBIT) was 331 mDKK (+53% compared with last year). Profitmargin continues to rise, EBITDA of 11.0% being achieved in 2nd quarter 2007,as against 9.3% for the same period last year. Pre-tax earnings were 308 mDKK,as against 204 mDKK last year, a rise of 51%. The above comparative figures for2nd quarter 2006 have been adjusted for non-recurring items (principally incomefrom property sales) of 108 mDKK. NKT's overall organic growth has been very satisfactory and amounted to 14% forthe 2nd quarter. This was due to continuing high organic growth levels in bothNKT Cables (20%) and Nilfisk-Advance (8%). In addition, NKT Photonics Groupexperienced a good quarter with 41% organic growth, and our 51%-owned companyNKT Flexibles had a strong second period with organic growth of 32%. Forecast 2007Expectations for 2007 were revised upwards in the 1st quarter report as aresult of the positive development in all NKT's areas of business. Revenue wasrevised upward from around 12.7 bnDKK to around 13.2 bnDKK, and Group earningsbefore tax were revised upward to around 850-900 mDKK, as against 800-850 mDKKexpected previously. With the realised developments in 2nd quarter 2007, we now have the basis formaking the following adjustments to our expectations: Group revenue is revisedupward to around 13.3 bnDKK, and a more precise prediction of Group earningsbefore tax is around 900 mDKK. The interim report for 2nd quarter 2007 can be downloaded from www.nkt.dk Today at 3 p.m. a live webcast briefing and conference call concerning theinterim report and the NKT 2008-2012 strategy plan, takes place at FUHUConference Centre, Fiolstræde 44 in Copenhagen. Please register for this meeting at telephone +45 4348 3204 or [email protected] This release is published in Danish and English. In the event of any questionsof interpretation the Danish text shall prevail. Any questions should be directed to Michael Hedegaard Lyng, CFO, telefon +45 4348 3203Yours sincerely,NKT Holding A/S,Communications department