Hexagon acquires the major metrology distributor in Brazil

9/9/2002 4:56 AM EST

HEXAGON ACQUIRES THE MAJOR METROLOGY DISTRIBUTOR IN BRAZIL.

Hexagon Metrology, a business unit within the Hexagon Group, has signed
an agreement for the acquisition of the Brazilian metrology distributor
and agent Quality Ltda (earlier Quality Technology Ltda). The company
currently provides on an agency basis metrology machines and services
from Hexagon Metrology totalling 80 MSEK per year, and has a turnover,
including commission on provided machines and service, of approx. 40
MSEK and employs some 35 people. The acquisition, which is subject to
customary closing conditions, will be made through a newly formed
Hexagon company in Brazil.

Quality has acted as a distributor and agent in Brazil for Hexagon
Metrology's Italian company DEA since 1999. During this period of time,
the company has established a position as the major distributor of
metrology machines and services to the Brazilian industry, with a
particularly strong position towards the vehicle manufacturers.

The acquisition of Quality is an important step in the strengthening of
the Hexagon Metrology's local presence in South America, both regarding
sales of new machines as well as the very interesting aftermarket
business. The acquisition is expected to contribute to Hexagon's
earnings as from closing of the acquisition and consolidation of the
company into the Hexagon Group, which is expected to take place on
October 1st, 2002.

For further information, please contact:

Ola Rollén, President and CEO Håkan Halén, CFO
Hexagon AB Hexagon AB
Phone: +46 (0)8 - 601 26 20 Phone: +46 (0)8 - 601 26 20

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.