Hexagon increases its interests in China

12/2/2003 9:04 AM EST

HEXAGON INCREASES ITS INTERESTS IN CHINA

Hexagon Metrology has agreed to acquire an additional 15 per cent of
each of its subsidiaries Qingdao Brown & Sharpe Quinshao Technology Co
Ltd and Qingdao Brown & Sharpe Trading Co Ltd. Hexagon will hereby
control 90 per cent of the capital in the companies. The remaining 10
per cent is owned by a Chinese state owned company. The acquisition,
which is subject to approval by the Chinese Government, will be
concluded during the next coming months.

The Chinese subsidiaries manufacture and sell metrology machines and
service to the Chinese industry, with an especially strong position
within the automotive and aerospace industries. In recent years the
Chinese business has expanded rapidly and today it represents 10 per
cent of the turnover within the business area.

The increased ownership is a natural step in Hexagon Metrology's
expansion in Asia.


For further information, please contact:

Ola Rollén, President and CEO Hakan Halen, 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 four business areas:
Hexagon Automation, Hexagon Engineering, Hexagon Metrology and Hexagon
Polymers. 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.