Regulatory News:

In today’s interim report for the third quarter of 2015, Nolato (STO:NOLAB) reports strong earnings and margin performance.

· Sales totalled SEK 1,084 million (1,095)

· Operating profit (EBITA) rose by 27% to SEK 142 million (112)

· Strong EBITA margin of 13.1% (10.2)

· Profit after tax increased to SEK 105 million (83)

· Earnings per share were SEK 3.99 (3.15)

· Cash flow after investments was SEK 120 million (–13)

“Nolato is showing continued high profitability, with return on capital employed of 32.0 percent over the last twelve months,” said Nolato President and CEO Hans Porat.

Nolato Medical’s sales were SEK 368 million (330) and its EBITA rose significantly to SEK 51 million (42). The EBITA margin grew to a strong 13.9% (12.7).

“Performance in the quarter was helped by a good product mix,” said Hans Porat. “Nolato Medical’s high activity and healthy project activity is providing us with a good basis for future growth.”

Nolato Telecom’s sales totalled SEK 434 million (502). The EBITA increased to SEK 63 million (48), with a strong EBITA margin of 14.5% (9.6).

“The improvement in the margin was supported by a beneficial product mix and a low material share, efficient adjustments to lower volumes and a continued focus on EMC (electromagnetic compatibility),” noted Hans Porat.

Nolato Industrial’s sales rose to SEK 282 million (264), EBITA was SEK 30 million (28) and its EBITA margin was 10.6 percent (10.6).

“Volumes in the automotive and hygiene segments showed positive performance and were higher than the year-earlier period,” said Hans Porat.

At the end of third quarter, the equity/assets ratio was 53 percent (50) and the financial position remained healthy with net financial assets of SEK 16 million (–43).

Nolato is a Swedish group operating in Europe, Asia and North America. We develop and manufacture products made from polymer materials such as plastic, silicone and TPE for leading customers in medical technology, pharmaceuticals, telecoms, automotive, hygiene and other selected industrial sectors.

Nolato shares are listed on Nasdaq Stockholm, where Nolato is a Mid Cap company in the Industrials sector.

The information is such which Nolato AB is obliged to disclose under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was made public on 28 October 2015 at 2.30 pm.

www.nolato.com

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