Firefly signs contract with SL; breakthrough for MGD-technique

Firefly AB, noted on the NGM stock exchange, has signed a contract with Storstockholms Lokaltrafik AB to deliver a entirely new type of advanced fire detection system for the Stockholm subway network. The contract is signed in accordance with the Swedish law of public tender ("LOU"). The first systems will be delivered during the spring of 2007. During the second and third quarter, a pilot run and integration will be performed. The rest of the systems will be delivered by the fourth quarter year 2007 and the delivery is estimated to be finished by the turn of the year 2008/2009. The total delivery comprises about 50 subway stations and their connecting tunnels.

"It has taken us a total of six years to develop and introduce our new MGD-system (Multiple Gas Detector). The development of the system has been very costly. The order from SL is a final breakthrough for us in the field of advanced fire detection systems for tunnel applications and shows that even smaller businesses can carry successful and costly projects, if the board of directors truly has the patience that such a project demands. We will now move towards an international introduction of the system and simultaneously follow the installation in the Stockholm subway network very carefully," says Firefly's MD Mr. Lennart Jansson.

This project will claim large costs also during next year, which will affect Firefly's results during year 2007. If the project runs according to plan, the company's result for year 2008 will be tangibly positive.

Translated from Swedish - for original press release, please visit www.firefly.se --> investor relations