Report from the Annual General Meeting of Karlshamns AB

4/26/2000 11:20 AM EST

The Annual General Meeting confirmed the dividend of SEK 3.50 per share,
as proposed by the Board of Directors.

Mr Lars Hjort, vice president of KF ekonomisk förening, was elected
Director of the Board. Mr Hjort is succeeding Mr Håkan Söderbäck who
declined his re-election.

The Board's proposal with respect to authorization for the repurchase of
the Company's own shares was approved by the Meeting. The resolution means
that the Board, in the period up to the next ordinary shareholders
meeting, on one or several occasions may decide to buy back the company's
own shares on the Stockholm Stock Exchange to the extent that the
Company's own shareholding, at any single moment, never exceeds the limit
of 10% of the Company's total equity. The share repurchase program must
only be executed within the price range quoted at any given moment at the
Stockholm Stock Exchange, a range specified as the interval between the
highest bid rate and the lowest offer rate.

The AGM further confirmed that that Directors' fees for the year 2000
shall remain on the total amount of SEK 800.000, to be distributed by the
Board of Directors among those elected Directors not being employed by the
Company.

The AGM finally resolved to re-elect the current accounting firm Öhrlings
Pricewaterhouse Coopers AB, for a period of four years.