29 Jun 2009 at 08:40 GMT+2
Regulatory press release

HMS Networks AB: Market conditions for the first 6 months 2009


HMS Networks AB (publ) sees a continuing week market during the first
six months of 2009.

Preliminary figures on net sales for the first six months 2009 show a
decline of 30%, including positive currency effects, compared to the
same period the previous year. HMS preliminary estimate shows a 0
result on the EBIT level. Orders received have been week during the
period with a slight recovery during the later part of the second
quarter.

"The downturn in the global market we reported after the first
quarter of 2009 continued also during the second quarter resulting in
a weak demand from our customers. Also during the second quarter our
customers adjusted for a further weakening of the global economy. The
effect from our customers' inventory adjustments was longer and more
severe than we previously expected," says CEO Staffan Dahlström.

"The cost reductions recently made to adjust our operations to
present market conditions will have effect during the second half of
2009. Also in this weak market situation with low volumes shipped, we
still have an inflow with new Design Wins that will contribute to
sales in 2010 and onwards," says Staffan Dahlström.


For more information please contact:
Staffan Dahlström, Chief Executive Officer, HMS, phone: +46 35 17 29
01
Gunnar Högberg, Chief Financial Officer, HMS, phone: +46 35 17 29 95


Press pictures and background information for editorial use can be
downloaded under "Press" at http://investors.hms.se.

HMS Networks AB (publ) is a world-leading supplier of communication
technology for industrial automation. Sales for 2008 grew by 17% to
SEK 317 million. Over 90% of these sales were to customers located
outside Sweden. All development and the major portion of
manufacturing is carried out at the head office in Halmstad. Sales
offices are located in Japan, China, Germany, the USA, Italy and
France. HMS has 154 employees and produces network interface cards
and products to interconnect different networks under the trademark
Anybus®. The network interface cards are embedded in automation
equipment such as inverter drives, robots, control systems and
sensors. This allows subcomponents in machines to communicate with
one another and with different networks in order to build more
efficient and flexible automation systems with reduced energy
consumption.

In 2008 HMS was presented with Sweden's "Best export company" award
by H.M. the King of Sweden and HMS has had an average growth of 30%
year-on-year over the past ten years. HMS is listed on the NASDAQ OMX
Nordic Exchange in Stockholm in the Small Cap, Information Technology
sector.