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Continued improvement for Doro:

Continued improvement for Doro:Q3 report (1 Jul-30 Sep 2007)• Jérôme Arnaud Doro's new CEO • Dramatic improvement of profit after tax, SEK 0.9 million (-13 m) • Sales amounted to SEK 81 million (104 m) after completed disposals • Former loss-making areas showing positive results • Strong growth for Business Electronics and Care, +50% • More promising product launches over the period • EPS after tax, SEK 0.05 (-0,74) • Positive cash flow from current activitiesChairman of the Board, Bo Kastensson's comments;“Doro is reporting a profit for the third quarter, which is a considerableimprovement compared to last year. The major losses in the Home business areahave turned around to a small profit. The initiative to develop the growth areasof Care and Business electronics, in which conditions for profit growth aregood, can therefore be intensified. The Board has today appointed Jérôme Arnaud as Doro's new CEO. Jérôme iscurrently the MD of Doro France and responsible for the Care and BusinessElectronics business areas for the group. Due to the change of CEO, RuneTorbjörnsen will leave his position and other assignments within the Doro Group.Torbjörnsen will assist the Board for a transitional period. The reason for the change of CEO is that Doro has undergone major changes overthe past two years. The company is now entering a phase with a stabilisedbusiness in the Home business area and excellent opportunities for growth in theCare and Business Electronics business area. Jérôme Arnaud's experience in these business areas makes him, according to theBoard, suitable to lead the company through this development phase. JérômeArnaud was born in 1963, lives in France and has been MD of Doro's Frenchbusiness since 2000.Profit for the Group in Q3 Dramatic growth in the Care and Business Electronics business areas, with highermargins has helped towards a significantly better result. The Home businessarea also showed a profit for the quarter, partly due to continued costtrimming. The lower US dollar has had a positive effect on results. Sales amounted to SEK 81 million (104 m)The disposal of the loss-making businesses in Australia and Poland has meantlower sales than for the same period last year. Sales in comparable businesseswere in line with last year but with a greater share of sales in the businessareas with high margins. Gross margin strengthened The gross margin has been strengthened due to Doro's business areas havingimproved gross margins, rising by 10 percentage points to around 27% of sales,while products with low margins in home telephony have successively beendisposed of. Furthermore, stock control has improved, which has cut stockdepreciation. Overheads have fallen Overheads are 20% lower than for the same period in 2006 and have fallen partlyas a result of the loss-making businesses being disposed of and partly throughthe rationalisation scheme. Operating profit (EBIT) up SEK 10 million In total, the operating profit for the period improved from a loss last year ofSEK 9 million to a profit this year of SEK 1 million. The Group showed a positive operating profit of SEK 3.1 million (-30.0 m) forthe first nine months of the year.Business areasDoro is active in three business areas: Home, which is mainly home telephony andrepresents 73% of this year's sales (83% last year), Care, which specialises intelephony for the elderly, 12% (6%) and Business Electronics, mainlyspecialising in business telephony, 15% (11%). Home, which previously represented a major part of Doro's losses is continuingto stabilise with successively improved profit margins. Doro began supplying thenew NeoBio range in September, with its innovative design. Care is continuing to show signs of strong growth and is focusing on the growingmarket with specially developed products for senior citizens. The business areais currently investing in the renewed product portfolio and in developing newdistributors for a larger geographic coverage.A new series of products will be launched in the second half of 2007, which willinclude GSM telephones with functional design, to be delivered in Q4. Business Electronics has continued its growth through better distribution ofexisting products. New products will be launched in Q4 2007 and Q1 2008,including IP telephony products, which are expected to further improve growth. The Care and Business Electronics business areas now have a strongerorganisation and are showing a combined growth of 50% compared to the sameperiod last year. RegionsDoro's biggest markets since the New Year are France (43% of sales), NordicRegion (35%) and the UK (11%). During the quarter the UK has progressedpositively and Care especially is showing strong growth. OutlookDoro launched a number of new products in Q3. Lower costs, better gross marginsand a seasonally higher number of sales provide excellent opportunities for apositive earnings trend. Balance sheet and Cash flow Cash flow from current activities has improved significantly and was SEK 2million for the quarter. Since the New Year, cash flow has been negatively hit due to structural costs,which impacted on 2006's results but which were paid during the period andamounted to SEK 21 million. Furthermore, the working capital for the same periodrose by around SEK 7 million.Doro's net debt remains unchanged and available borrowings now total SEK 60million, while the equity/assets ratio is 25%.Parent companyThe parent company's net sales for the first nine months of the year amounted toSEK 17 million (16 m). The loss before tax amounted to SEK 24 million (-15 m). Significant risks and instability factorsDoro's risks and instability factors are mainly related to supplier disruption,customer relations and currency exchange rate fluctuations. Apart from theserisks and instability factors, which are described in the Annual Report on pages21-22, no other risks of any significance have been identified during the lastperiod. Doro's new CEO Doro's Board decided at today's Board meeting to appoint a new CEO. Doro's newCEO will be Jérôme Arnaud, who is currently MD of Doro France and the Care andBusiness Electronics business area. He is a graduate engineer and before comingto Doro worked with business development and marketing at Matra Nortel. He hasalso worked in sales towards the South and Latin American markets and wasstationed for two years in Argentina. Future reportsThe Board has decided that the financial statement for 2007 will be released on12 February 2008.Quarterly reports are available on the internet at: www.doro.com.This quarterly report has been drawn up in accordance with the same accountingprinciples as the last Annual Report and has not been subject to a review by thecompany's auditors. For more information For further information, please contact: Chairman of the BoardBo Kastensson Tel: +46 (0)46 280 50 03CFO Stefan Sjölin, Tel: +46 (0)46 280 50 62Lund, 24 October 2007The Board, Doro AB (publ)Co. Reg. No 556161-9429Doro is listed on the OMX Nordic Exchange Stockholm - Mindre Bolag - Telekom/IT Magistratsvägen 10SE-226 43 Lund, SwedenTelephone: +46 46 280 50 60www.doro.com About DoroWith over 30 years' experience in telephony Doro is today characterised byinnovative and user-friendly consumer electronics products. The company developsmarkets and sells a wide range of products in three business units: HomeElectronics, Business Electronics and Care Electronics. The company's productsare sold in more than 30 countries worldwide through a variety of retailoutlets, including electronics stores, online stores and specialised channels.The company had sales of SEK 433 million in 2006. Doro's shares are quoted onthe Stockholm Stock Exchange, Nordic list, Small companies. Read more about Doroat www.doro.com

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Doro AB
Jörgen Kocksgatan 1 B
211 20  Malmö
Sweden
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