Hexagon acquires GFD Technology gmbh

6/28/2002 6:00 AM EST

HEXAGON ACQUIRES GFD TECHNOLOGY GmbH

Hexagons ambition is to become and remain as No 1 or No 2 within its
strategic segments. Hexagon has therefore acquired the German company
GFD Technology via its wholly owned subsidiary Gislaved Gummi AB.

The Acquisition is a step in the process to position Gislaved as the
leading supplier of advanced rubber compounds. The Outsourcing trend, to
mix raw materials into a rubber compound, remains strong. The Market is
therefore expected to continue to expand rapidly as old manufacturing
equipment becomes obsolete. Thanks to this acquisition Gislaved
positions itself as one of the leading suppliers within this niche in
Europe.

The Acquisition will enhance earnings from the day of consolidation. The
Acquisition will also generate substantial synergies in R&D, Production
as well as market penetration.
GFD started its production of rubber compounds in 1997. Since then GFD
has utilised its superior cost efficiency to expand. The Sales turn over
is app. 300 Msek for the fiscal year 2002. The Investment pace has been
high throughout this period and GFD possesses the most advanced
production facility in the industry. Gislaved is, thanks to the
acquisition, in a position to continue its aggressive expansion within
the rubber compound segment.
GFD has 90 employees.

Gislaved Gummi is a part of Hexagon Engineering. Gislaved will, after
the acquisition, have an annual sales turn over of app. 800 MSEK.

For further information, please contact

Ola Rollén, President & CEO Lars Olofsson, President
Hexagon AB Gislaved Gummi AB
Phone: +46 (0)8- 601 26 20 Phone: +46 (0)371-848 00

Hexagon AB is a multinational engineering group with the long-term
ambition of positioning itself as number one or number two within its
strategic sectors. The operation is divided into three business areas:
Hexagon Automation, Hexagon Engineering and Hexagon Metrology. The
group's targets are to increase earnings per share after tax by at least
15 per cent p.a., and achieve a return on capital employed higher than
15 per cent over the business cycle. Current turnover amounts to more
than 7 GSEK p.a.