Cardo acquires leading control engineering company

12/11/2001 3:32 AM EST

Cardo's business area Pump has signed an agreement on the acquisition of
all shares in Swedmeter AB, one of Scandinavia's leading companies in
the field of control engineering for water treatment processes etc. The
company has a turnover of approximately SEK 30 million and employs 26
people. Takeover will occur at the turn of the year.

Swedmeter, which is a privately owned company, began operating in 1980
and is situated in Täby just outside Stockholm. The company manufactures
and markets standardized products for purposes such as level and flow
control, analysis, process control and remote monitoring for both
municipal and industrial processes. In Sweden, these products are sold
directly to end customers, while distributors and agents handle sales in
other countries. Exports account for approximately 50 percent of sales.

The acquisition makes Cardo Pump a more complete system supplier,
particularly in the water and wastewater segment, and this at the same
time enhances its potential for taking a share of the attractive
aftermarket in connection with remotely monitored processes.

Cardo Pump, which has a turnover of approximately SEK 2.5 billion, is a
business area in the Cardo group and one of Europe's leading
manufacturers of pumps, mixers and aerators for water and wastewater
applications, industry and the building services sector. Cardo Pump is
also a global leader in the production of sophisticated measurement
instruments for the pulp and paper industry.

The acquisition is not expected to have an impact on Cardo group
earnings in 2002.

Malmö, Sweden, December 11 2001

Cardo AB (publ)

For further information, please contact:
Christer Roskvist, Head of Public Relations, phone +46 40 35 04 25, +46
40 35 04 00

Cardo is an international engineering group with a turnover of
approximately SEK 10 billion. Cardo holds a strong position in the
markets for doors, pumps and rail-vehicle brake systems. Cardo has
subsidiaries in about 30 countries with the focal point resting in
western Europe, and roughly 8,000 employees.