Further rationalisation at Bong Ljungdahl

9/20/1999 7:00 AM EST

FURTHER RATIONALISATION AT BONG LJUNGDAHL

Bong Ljungdahl has held statutory MBL (Co-Determination at Work Act)
meetings with the unions concerned, where it has informed them of the
following planned rationalisation measures:

Binder production is to be transferred from Kristianstad to the Group's
factory in Gdansk, Poland, and to external sub-contractors. 55 employees
at Kristianstad have been given redundancy notices. The remaining binder
activities in Kristianstad will be concentrated on sales, marketing,
logistics and administrative functions.

The envelope printing activities in Sweden are to be centralized at one
location, namely the present binder factory in Kristianstad. 31 employees
in Nybro have been sent notice of redundancy. The central warehousing
facility in Nybro will be retained and developed.

These measures should be seen as part of the strategy of improving
operational efficiency. Taken overall, they are expected to lead to
considerable savings, as they will involve a net reduction of some 50-60
in the work force.

The changes will be made successively during the autumn/winter, with
completion planned for the first half of 2000.

th
Kristianstad, September 20 , 1999.

BONG LJUNGDAHL AB (publ.)

Lennart Pihl
President and Group Chief Executive

For further information, please contact Lennart Pihl, President and Group
Chief Executive, Bong Ljungdahl.
Tel: +46-44-20 70 00 (switchboard), +46-44-20 70 50 (direct),
or +46-70-594 68 66 (mobile).