Cardo makes big investment in Sweden

11/7/2003 8:33 AM EST

Cardo has decided to invest approximately SEK 70 million in an expansion
of the Cardo Pump business area's production facility in Vadstena. This
investment means that Cardo's pump manufacture in Sweden will be
concentrated and its efficiency enhanced.

The intention is for the business area's current pump production in
Mölndal and in two plants in Vadstena to be concentrated in one unit in
order to enhance efficiency and to improve customer service.

"The investment will help to increase competitiveness and in so doing
allow us to secure a continued positive profitability trend for Cardo
Pump in the longer term too," says Cardo's president and CEO Kjell
Svensson.

The plans involve combining production at the three units at one
production unit in Vadstena and closing the Mölndal plant during the
first half of 2005. In order to be able to handle the total volume,
approximately SEK 70 million will be invested in modernization and
expansion of the plant in Kvarnbacken, one of the two facilities in
Vadstena.

The plant in Mölndal and the two facilities in Vadstena have a total of
about 220 employees, of whom roughly half are in Mölndal. Of the around
90 employees in Mölndal who may be affected by the operation being
moved, as many as possible will be offered work in Vadstena.

The change involves plans to transfer certain central functions at Cardo
Pump's office, today located at the unit in Mölndal, to Cardo's head
office in Malmö.

Negotiations regarding the planned changes will be initiated in the near
future under the Co-determination in the Workplace Act.

New business area head
In connection with the discussions on the planned changes, an agreement
has been entered into that involves Cardo Pump's business area manager
Thomas Widstrand leaving his post.

Peter Aru has been appointed new head of the Cardo Pump business area
and a member of Cardo's group management team. He comes from Besam,
where he has been president since 1998. Peter was born in 1957 and holds
a degree in engineering from Linköping Institute of Technology.

Peter Aru will take up his post in January 2004. In the meantime,
Cardo's president and CEO Kjell Svensson will hold the position as head
of Cardo Pump.

Malmö, Sweden, November 7 2003

Cardo AB (publ)

For further information, please contact:
Kjell Svensson, President and CEO,
phone +46 40 35 04 53, +46 40 35 04 00
Christer Roskvist, Head of Public Relations,
phone +46 40 35 04 25, +46 40 35 04 00

Cardo is an international engineering group and a leading supplier of
high-quality products and systems with a good aftermarket. Cardo holds
strong positions in the markets for doors and pumps. Cardo has
subsidiaries in about 30 countries with the focal point resting in
western Europe.