Simplified share structure

At a meeting today Industrivärden's board of directors decided to propose that an extraordinary general meeting be held on October 25, 2001, to decide on the cancellation of the Company's CPN loan 1988/2028 in accordance with the terms of the loan.

The motives for the cancellation are to simplify Industrivärden's share structure, facilitate the valuation of the Company, and enhance the liquidity of Industrivärden's stock. After execution of the cancellation there will be two types of listed Industrivärden securities: Class A and Class C shares. With full conversion the total number of shares will increase by 12 percent to 193,149,369 shares. The number of Class A shares will increase by 7 percent, to 134,276,371 shares, and the number of Class C shares will increase by 25.8 percent, to 58,872,998 shares.

One CPN currently entitles its holder to one (1) new share upon conversion. If the extraordinary general meeting decides in favor of the Board's proposal, a recalculated conversion price will be applied with effect from October 26, 2001. This entails that upon conversion, one (1) CPN would convert to 1.1 shares. This conversion factor was stipulated in the terms of the CPN loan upon its issuance in 1988 and provides compensation for the excess return of 15 percent higher annual dividend – the so-called CPN interest – that CPN owners will no longer receive after conversion of CPNs to stock.

The proposal entails that CPN owners have the right to submit their CPNs for conversion until January 31, 2002, inclusive. CPN owners who by that date have not submitted their CPN holdings for conversion will – on the loan's adjusted maturity date, February 28, 2002 – receive cash payment of the par value, SEK 23 per CPN. Calculated according to the closing price of Industrivärden's Class A shares on August 14, 2001, 176.00, upon conversion holders will receive a value of 1.1 x SEK 176.00 = SEK 193.60 per CPN. This is to be compared with the par value of SEK 23, which will be received if the shares are not submitted for conversion.

A separate information folder with an application form for conversion will be distributed to CPN owners in late October/early November.

Stockholm, Sweden, August 15, 2001

AB INDUSTRIVÄRDEN (publ)

For further information, please contact:
Anders Nyrén, President and CEO, Industrivärden, tel. +46-8-666 64 00
Carl-Olof By, Executive Vice President and CFO, Industrivärden, tel. +46-8-666 64 00



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