Indutrade acquires AKA and Fagerberg from Hexagon

Indutrade has signed an agreement with Hexagon on the acquisition of most of the business conducted by the trading companies AKA and Fagerberg. The purchase price has been set at SEK 270 M. The acquisition is a natural step in the development of existing and new technology areas for Indutrade. Based on the outcome of these businesses for 2000, Indutrade's sales will increase by approximately SEK 1 billion, to roughly SEK 3 billion.

Indutrade, one of Sweden's largest industrial trading groups, comprises some forty companies with approximately 850 employees. Sales in 2000 amounted to SEK 1.9 billion, with pretax earnings of SEK 176 M. Indutrade's business concept is to provide industrial companies with imported components and qualified technical system solutions. Sweden, Denmark, Finland and the Benelux countries are the primary markets. During the past decade, Indutrade has undergone major expansion through organic growth as well as through successive acquisitions.

The businesses acquired under the agreement had combined sales in 2000 of approximately SEK 950 M, with 500 employees.

From the AKA Group, Indutrade is acquiring the two companies Oy Tecalemit AB and EIE Maskin AB, active in hydraulics, flow control, and process and transmission technologies. The acquired parts of the Fagerberg Group comprise four Nordic trading companies under the name Fagerberg, with agencies primarily in industrial valves and measuring instruments. The acquisition also includes GEFA Processtechnik GmbH and Pentronic AB.

The acquisition is conditional upon approval from the pertinent competition authorities.

Stockholm, Sweden, February 12, 2001

AB INDUSTRIVÄRDEN (publ) INDUTRADE AB

For further information, please contact: Gunnar Tindberg, President and CEO of Indutrade, tel. +46-8-703 02 00

Indutrade is a wholly owned subsidiary of Industrivärden, one of Sweden's largest holding companies with a stock portfolio worth approximately SEK 60 billion and a subsidiary operation with sales of nearly SEK 5 billion. Industrivärden's business mission is to invest in stocks and, through active ownership, create good growth in value in the portfolio companies. The objective is to give shareholders a higher total return than the average for the Stockholm Stock Exchange. During the past five-year period this goal has been achieved with a good margin.

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