REPORT FOR 3rd QUARTER 2011

CHALLENGING FRAMEWORK CONDITIONS AND CONTINUING COST 
REDUCTIONS

In a number of countries where Blom operates, the 
macroeconomic conditions are still challenging, 
especially in Southern Europe. The company's revenues 
and earnings have been impacted negatively during the 
quarter as a result of turbulence in the financial 
markets, as well as unfavourable operational 
circumstances that have postponed the fulfilment of 
orders already placed from the 3rd quarter to a later 
point in time.

In order to improve profitability under the current 
market conditions, Blom has focused on market niches 
where the company has a competitive advantage and 
geographic regions that have an increasing need for 
the company's products and services, as well as 
continued implementation of cost saving measures. The 
quarter's personnel costs were NOK 8 million lower 
than the same quarter last year, and NOK 24 million 
lower to date in 2011. Other operating expenses have 
been reduced by NOK 3 million during the same period 
and by NOK 16 million to date in 2011. These measures 
have helped keep the EBITDA positive this quarter in 
spite of the challenging macroeconomic and 
operational conditions.

The company posted revenues of NOK 129 million in the 
3rd quarter, compared with NOK 165 million for the 
same quarter in 2010. EBITDA for the quarter was NOK 
0.6 million, compared with NOK 33 million for the 
corresponding quarter in 2010. This corresponds to an 
EBITDA margin of 0.4 per cent, compared with 20.1 per 
cent in the 3rd quarter of 2010. The operating loss 
for the quarter was NOK 15 million, compared with a 
profit of NOK 10 million for the same period in 2010.

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.