Höganäs first quarter 2009: De-stocking on a very weak market and new initiatives in future green technology

CEO Alrik Danielsson comments first quarter 2009:
In the early months of 2009, the market was as weak as feared. Demand for finished products made of our powder was very low. Moreover, weak demand in late-2008 meant that inventories were unusually high right through the value chain at the beginning of the year. This resulted in many customers closing production down for long periods in the quarter, which exerted an exceptionally harsh effect on Höganäs' sales volumes. Against this background, I am pleased that our action-plan meant that we were able to generate a positive cash flow from operating activities in the period. Meanwhile, I note how our continued work on future technologies is continuing to generate results, through a feasibility study for environmental DRI production that we have agreed to conduct alongside LKAB and StatoilHydro.

FOR MORE INFORMATION

Please contact:
Alrik Danielson, CEO and President, +46 (0)42 33 80 00
Sven Lindskog, Chief Financial Officer, +46 (0)42 33 80 00

Höganäs AB is the world's leading producer of iron and metal powders. Building on its clear vision of the possibilities of powder to improve efficiency, the consumption of resources and environmental impact across a raft of segments, the company has developed in-depth application skills.

Thus Höganäs can help create the automotive components, white goods, water and exhaust treatment products of the future in collaboration with its customers. Founded in 1797, the company had sales of MSEK 6,103 in 2008, and is quoted on NASDAQ OMX Stockholm's Mid Cap List.
For more information, visit our website: www.hoganas.com.