This is primarily due to the considerable uncertainty regarding the timetable for 3G expansion, which in turn affects the purchasing behavior for 2G products. As a result hereof, LGP decided in June to abandon its previous full-year forecast for 2001. This leads to that goals of growth and profitability for 2001 will not be reached. It is important to point out, that despite weak earnings for the second quarter, LGP has a bright outlook on the future. There is a strong need for LGP s products and knowledge.
Growth is good in Asia, particularly in China.
The market in the United States is beginning to show signs of increased demand and LGP believes that the first phase of 3G investments in Western Europe will begin shortly. In summary the Company has excellent opportunities for future growth and for achieving satisfactory profitability.