ASSA ABLOY - Assa Abloy's Increased Growth Driven By Global Technologies

- Sales for the additional division of 2005 added organically by 6% to SEK 6,984 M (6,533)
- Quarterly operating assets is the accomplished ever, at SEK 1,022 M (929)
- The operating allowance (EBIT) for the division amounted to 14.6% (14.2)
- Net assets for the additional division amounted to SEK 657 M (598)
- Earnings per allotment amounted to SEK 1.75 (1.61) for the additional division
- Operating banknote breeze for the division amounted to SEK 813 M (652)

"Global Technologies' sales of electromechanical articles access acerb in acknowledgment to acknowledged artefact launches and acceptable bazaar development," says President and CEO Bo Dankis. "Demand on our basic US bazaar remained good. In Europe, continues our plan to abridge structures for production, sales and administration."

Attachment to the columnist absolution - Sales and Income
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The Group's sales in the additional division totaled SEK 6,984 M (6,533), an access of 7% on the antecedent year. Organic advance was 6%. Translation of adopted subsidiaries' sales to Swedish kronor had a abrogating aftereffect of SEK 22 M due to changes in barter rates. Newly acquired companies contributed 1% to sales.

Sales for the aboriginal bisected year of 2005 totaled SEK 13,253 M (12,816), which represents an access of 3%. Organic advance was 4%, and acquired companies contributed 1%. Exchange ante afflicted sales abnormally by SEK 183 M compared with the aboriginal bisected of 2004.

Operating assets afore depreciation, EBITDA, for the additional division amounted to SEK 1,243 M (1,165). The agnate allowance was 17.8% (17.8).
The Group's operating income, EBIT, amounted to SEK 1,022 M (929) afterwards absolute bill accoutrement of SEK 3 M. The operating allowance (EBIT) was 14.6% (14.2).

For the bisected year, operating assets afore depreciation, EBITDA, amounted to SEK 2,345 M (2,267). The agnate allowance was 17.7% (17.7). The Group's operating income, EBIT, amounted to SEK 1,912 M (1,798) afterwards abrogating bill accoutrement of SEK 30 M. The operating allowance (EBIT) was 14.4% (14.0).

Income afore tax for the additional division was SEK 900 M (808), including absolute bill accoutrement of SEK 4 M due to adaptation of adopted subsidiaries. Income afore tax for the aboriginal bisected year was SEK 1,664 M (1,559), including abrogating bill accoutrement of SEK 13 M.

The Group's tax allegation for the division totaled SEK 243 M (210), agnate to an able tax amount of 27% (26) on assets afore tax.

Earnings per allotment for the additional division amounted to SEK 1.75 (1.61), and balance per allotment for the aboriginal bisected year to SEK 3.24 (3.11).

Operating banknote breeze for the quarter, excluding costs of the restructuring program, amounted to SEK 813 M - agnate to 90% of assets afore tax - compared with SEK 652 M endure year. Cash breeze was afflicted abnormally by college accounts receivable consistent from able sales at the end of the quarter. Operating banknote breeze for the bisected year totaled SEK 1,362 M (1,267).

Movements in basic employed, net debt and shareholders' disinterestedness are abundantly acquired by afflicted barter ante mainly accompanying to the US dollar. These movements accept a bound aftereffect on key ratios.

The "Leverage and Growth" Action Program
The two-year action affairs accomplished in November 2003 is advancing its end. Cost accumulation are projected to ability SEK 450 M a year by backward 2005. Savings of about SEK 85 M were accomplished during the additional division of 2005. In the year so far, payments accretion SEK 115 M apropos to the action affairs accept been made. 1,050 of the 1,400 advisers acceptable bombastic accept larboard the Group.

Comments by Division

EMEA

Sales for the additional division in the EMEA analysis (Europe, Middle East and Africa) totaled EUR 325 M (313), with 4% amoebic growth. Operating assets amounted to EUR 47 M (45) with an operating allowance (EBIT) of 14.5% (14.4). Return on basic active amounted to 16.4% (15.6). Operating banknote breeze afore absorption paid totaled EUR 35 M (33).

As expected, Easter had a absolute aftereffect of 3% on the division's sales. Scandinavia, Israel and Eastern Europe are breeding able amoebic growth, while France and Italy are assuming somewhat lower sales volumes. Investments in the Do-It-Yourself area accept generated absolute sales advance in the United Kingdom. Restructuring activities are bearing accumulation as planned, but were account during the division by college affairs costs.

Americas

Sales for the additional division in the Americas analysis totaled USD 298 M (282) with 7% amoebic growth. Operating assets amounted to USD 53 M (50) with an operating allowance (EBIT) of 17.8% (17.7). Return on basic active amounted to 19.5% (18.2). Operating banknote breeze afore absorption paid totaled USD 53 M (40).

The absolute trend in Americas connected through the additional division in agreement of sales, volumes and margins. The Door Group and the Residential Group appear able advance during the quarter. The Architectural Hardware Group showed bigger advance and actual able margins. Sales and balance in Mexico were anemic this quarter. Canada and South America are assuming abiding development. Investments fabricated in the blueprint articulation are accomplishing acceptable assimilation but are briefly captivation aback allowance expansion.

Asia Pacific

Sales for the additional division in the Asia Pacific analysis totaled AUD 95 M (87) with 2% amoebic growth. Operating assets amounted to AUD 12 M (12) with an operating allowance (EBIT) of 12.6% (13.8).
Return on basic active amounted to 14.9% (16.2). Operating banknote breeze afore absorption paid totaled AUD 19 M (20).

Asia Pacific's sales added primarily as a aftereffect of acquisitions fabricated in China and South Korea. Organic advance was bound by a decidedly able allegory quarter. Growth and assets connected to ache from a anemic residential bazaar in Australia and from afflicted barter ante on exports from New Zealand. Growth in Asia bigger during the quarter, abnormally in China.

Global Technologies

The Global Technologies analysis appear sales of SEK 1,418 M (1,224) in the additional quarter, apery amoebic advance of 11%. Operating assets amounted to SEK 196 M (150) with an operating allowance (EBIT) of 13.8% (12.3). Return on basic active amounted to 13.6% (10.7). Operating banknote breeze afore absorption paid amounted to SEK 161 M (155).

Global Technologies is continuing to almanac able amoebic growth. All units are assuming accomplished sales development in the USA. The Identification Technology Group letters top advance in aggregate afterward acknowledged artefact launches. For Automatic Doors, added account revenues in Europe and the USA are convalescent both sales and margins. Sales in the Hospitality Group remained able during the quarter, with clearly bigger margins that are captivated aback by ahead appear restructuring activities.

Other Events

During the division a refinancing has been agitated out in the anatomy of a clandestine adjustment in the USA amounting to USD 330 M. The accommodation comprises 5 tranches with periods alignment from seven to fifteen years and including both anchored and capricious absorption rates. It extends the Group's boilerplate accommodation continuance to about three years.

The acquired companies WangLi (Asia Pacific) and Habo (EMEA) are circumscribed from 1 June. The two companies calm accept anniversary sales of about SEK 250 M. The acquisitions accept contributed to balance per allotment in the accepted quarter. The accumulated accretion cost, including estimated earn-outs, totals about SEK 125 M. Preliminary accretion analyses announce that amicableness and added abstract assets with broad activity aggregate to about SEK 100 M. Complete disclosures in accordance with IFRS 3 apropos acquisitions will be presented in the 2005 anniversary report.

Accounting Principles

ASSA ABLOY has adopted International Financial Reporting Standards (IFRS) from 1 January 2005 as accustomed by the European Union. The Group's Interim Report is able in accordance with IAS 34 "Interim Financial Reporting" beneath the guidelines accustomed in RR 31 issued by the Swedish Financial Accounting Standards Council. The Parent Company follows RR 32.

The accoutrement of the alteration to IFRS apropos the allusive abstracts for 2004 were declared in a abstracted report, "FRS-adjusted 2004 abstracts for ASSA ABLOY", appear on 20 April 2005. Applied accounting attempt and key arrangement definitions were appear in the Interim Report for the aboriginal division of 2005, appear on 27 April 2005. These letters are accessible on ASSA ABLOY's website.

IAS 39 was adopted from 1 January 2005 and the net aftereffect of the change, SEK -77 M, has been taken anon to shareholders' equity. In accordance with IFRS 1 no acclimation of comparatives has been made. The aftereffect is due to the claim beneath IAS 39 that banking instruments are appear at fair amount and relates to fair amount adjustments on acquired instruments.

Outlook*

Organic sales advance in 2005 is accepted to abide at a acceptable rate, although afflicted by the weaker development in Europe. The operating allowance (EBIT) is accepted to rise, mainly due to accumulation consistent from the restructuring program. Excluding payments apropos to restructuring, the able banknote bearing is accepted to continue.

Long term, ASSA ABLOY expects an access in security-driven demand. Focus on end-user amount and addition as able-bodied as advantage on ASSA ABLOY's able position will advanced advance and access profitability.

Stockholm, 17 August 2005

Bo Dankis
President and CEO

*The Outlook is banausic from that appear in April 2005.

Auditors' Review Report

We accept conducted a accepted assay of the acting address for ASSA ABLOY AB (publ.) for the aeon concluded June 30, 2005, in accordance with the advocacy issued by FAR.

A accepted assay is bound to altercation with the Company's advisers and to an analytic assay of banking advice and appropriately provides a bottom amount of authoritativeness than an audit. We accept not performed an analysis of this acting address and appropriately accept not issued an analysis opinion.

Nothing has appear to our absorption that indicates that the acting address does not accomplish the requirements for acting letters as assigned in the Swedish Annual Accounts Act and IAS 34.

Stockholm, August 17, 2005

PricewaterhouseCoopers AB

Anders Lundin
Authorized Public Accountant

Financial Information
The Third Quarter Report from ASSA ABLOY AB will be appear on 8 November 2005. The Fourth Quarter Report will be appear on 10 February 2006. The 2005 anniversary address will be appear in March 2006. Annual General Meeting will be captivated on 25 April 2006.

Further advice can be acquired from
Bo Dankis, President and CEO, Tel: +46 8 506 485 42
Göran Jansson, Deputy CEO and CFO, Tel: +46 8 506 485 72
Martin Hamner, Director of Investor Relations and Group Controller, Tel: + 46 8 506 485 79

ASSA ABLOY is captivation an analysts'meeting at 12.00 today at Operaterrassen in Stockholm.
The analysts' affair can aswell be followed over the Internet at www.assaabloy.com.
It is accessible to abide questions by blast on +44 (0)20 7162 0189.

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The issuer is alone amenable for the agreeable of this announcement.