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Second quarter 2004 results

14 July 2004

Europe / Germany (deposit-markets)

Revenues in Europe amounted to 441 MNOK in the first half of 2004 against 347 MNOK in 2003, an increase of 27%. Revenue increased by 21% measured in local currencies. Strong performances in Sweden, Germany, Austria/CEE and Finland were the main reasons for the improved revenues in the first half of 2004 versus the prior year. Revenues in Germany during the second quarter 2004 amounted to 53 MNOK, an increase of 51% relative to second quarter 2003. An increased number of installations for refillable containers were the main driver behind this growth. Despite being higher on a year-on-year comparison, the second quarter revenue level was somewhat lower than expected due to increased competition and the uncertain situation in Germany related to the deposit on non-refillable containers.

North America / California (deposit-markets)

Total revenues in North America amounted to 573 MNOK in the first half of 2004, an increase of 1% from 569 MNOK in the first half of 2003. Measured in USD, revenues increased by 3%. Revenues year-to-date in California equaled 160 MNOK, which was an increase of 19% versus 2003. The revenue growth was mainly driven by higher volume growth, as well as higher PET and aluminum prices. TOMRA anticipates a continued high growth rate in California over the remainder of 2004.

Brazil (non-deposit market)

Revenues in Brazil in the first half of 2004 amounted to 170 MNOK, a decrease of 8% versus 2003. Measured in USD, revenues decreased by 6%. Sales of aluminum cans in Brazil remain depressed, which directly impacts cans available for collection. High incentives are paid to consumers to have them return their cans. For TOMRA, this has resulted in continuing weak results in its collection business. TOMRA has discontinued its business development activities, and all efforts are now focused on further streamlining the aluminum can collection business.

Japan (non-deposit market)

TOMRA has been exploring partnership opportunities in Japan to strengthen its distribution network and increase the speed of expansion for the municipality business model. The partnership search has proceeded according to plan, and TOMRA has signed a Letter of Intent (LoI) with a leading and reputable Japanese industrial conglomerate. A final conclusion to the process is expected in the second half of 2004.

TiTech (non-deposit market)

On July 12 TOMRA signed an agreement to acquire 100% of the shares in TiTech Visionsort AS (TiTech) from Ferd AS. TiTech is the world`s leading provider of technological solutions for identification and recovering of high-value material fractions, such as packaging and paper. This creates the basis for more effective recycling in non- deposit markets. The company generated revenue of 88 MNOK in 2003 and expects strong, profitable growth in 2004. TiTech has installed more than 600 systems worldwide, and currently has activities in among other Germany, Spain, the United Kingdom, Italy, Japan and the United States.