Bong withdraws from Stronghold take-over and cancels plans for rights issue

3/20/2001 11:40 AM EST

Bong withdraws from Stronghold take-over
and cancels plans for rights issue

In view of the information and press releases published earlier this
year concerning the letter of intent and planned rights issue (January
24 2001), Bong wishes to provide the following information:

On January 24, 2001, Bong signed a letter of intent to acquire the
Stronghold Group, Holland's leading envelope company. The acquisition
was conditional on customary due diligence proceedings being
satisfactorily completed, and the take-over agreement was expected to be
signed around the end of March 2001. Assuming completion of the
Stronghold acquisition and with the object of maintaining a high degree
of financial flexibility after completion of the acquisition, the Board
of Bong Ljungdahl decided on February 28 to propose that an
Extraordinary General Meeting be held to approve the rights issue.

As the negotiations could not be brought to a conclusion on terms
mutually acceptable, the parties have decided not to go ahead with the
transaction.

As the object of the rights issue was to finance the planned
acquisition, the Board herewith withdraws its issue decision of February
28 and the notice convening the Extraordinary General Meeting on March
28.

Bong's acquisition-based growth strategy remains firm. The company's
vision for the next few years is to strengthen Bong's position of
leadership on the European envelope market, and to raise its market
share to above 30 per cent, which corresponds to annual sales of some
SEK 5-6 billion. With this in mind, Bong is currently evaluating a
number of other acquisition prospects.

Kristianstad in March, 2001
Bong Ljungdahl AB (publ.)
Board

For further information, please contact Lennart Pihl, President and CEO
Telephone: +46 44 20 70 50 or mobile: +46 70 594 68 66

Bong is a fast expanding international envelope company. The Group has
an annual turnover of some MSEK 2,500 and around 1,900 employees. It has
an annual production of some 16 billion envelopes at factories in
Sweden, Denmark, Norway, Finland, Germany, Great Britain, Ireland,
Belgium, Poland and Estonia. In recent years, Bong has played an active
part in the current process of restructuring in the European envelope
industry and sees significant potential for further expansion and
development. Bong is a public company and its shares are listed on the
OM Stockholm Stock Exchange's Attract 40 list.