REPORT FOR 2nd QUARTER 2013

Ongoing restructuring in a continued challenging 
market

As a result of lower volumes and prices in certain 
Nordic countries and a lower number of public tenders 
in Romania revenues declined in the 2nd quarter. 
Revenue performance was marked by the same factors 
during the first half of the year, and the market in 
Iberia was particularly challenging compared with the 
first half of 2012.
The comparative figures from 2012 were marked by 
several non-recurring events, the most significant of 
which was the conversion of debt, which entailed an 
accounting gain of NOK 24 million, as well as larger 
call-offs from existing framework agreements.

The company reported revenues of NOK 86 million for 
the 2nd quarter, compared with NOK 107 million for 
the same quarter in 2012. EBITDA for the quarter was 
NOK 2 million, compared with NOK 43 million for the 
corresponding quarter in 2012. This corresponds to an 
EBITDA margin of 2.4 per cent, compared with 40.7 per 
cent for the 2nd quarter of 2012. The operating loss 
for the quarter was NOK 8 million, compared with an 
operating profit of NOK 33 million for the same 
period in 2012. The pre-tax loss was NOK 10 million, 
compared with a pre-tax profit of NOK 27 million for 
the corresponding quarter in 2012. The restructuring 
costs associated with the personnel reductions 
impacted the cost base for the second quarter of 2013.

Revenues for the 1st half 2013 totalled NOK 138 
million, compared with NOK 169 million for the same 
period in 2012. EBITDA for the 1st half year was NOK -
7 million, compared with NOK 31 million for the 
corresponding period in 2012. This corresponds to an 
EBITDA margin of -5.4 per cent, compared with 18.1 
per cent for the 1st half of 2012. The operating loss 
for the 1st half year was NOK 25 million, compared 
with an operating profit of NOK 10 million for the 
same period in 2012.

Blom has reduced its operations over several years 
through sale and downscaling of several subsidiaries. 
The company intends to further reduce its geographic 
exposure and risk. The company's scope, complexity 
and risk are thus significantly less now. The company 
is making an active effort to adapt its structure, 
cost base and product portfolio in order to improve 
the company's earning capacity.

The company has had an ongoing dialogue with a 
majority of the bondholders for the company's bond 
loan. The bondholders approved an extension of the 
maturity of the loan ISIN NO 001064747.2 until 26 
September 2013 at the bondholder meeting of 26 June 
2013. The term of a short-term liquidity loan of EUR 
2.5 million from Hexagon AB agreed on in December 
2012 was extended until 24 September 2013. The 
creditors for this debt are also among the company's 
principal shareholders. The company has an ongoing 
dialogue with its principal creditors and is actively 
seeking to find a final and permanent solution for 
the company's debt that matures at the end of 
September 2013.

For further information please contact the CEO, Dirk 
Blaauw, on tel. +47 22 13 19 20 or CFO Lars Bakklund 
on tel. +47 22 13 19 34.