Hexagon intends to acquire Cubic-Tavleproduktion A/S

8/15/2001 9:43 AM EST

HEXAGON INTENDS TO ACQUIRE CUBIC-TAVLEPRODUKTION A/S

The by Hexagon wholly-owned Danish subsidiary, Systemteknik A/S, which
is a part of the Hexagon business area Automation, has signed a Letter
of Intent with the Danish company, Cubic-Modulsystem A/S. Systemteknik
A/S has the intention to acquire the, also in Aalborg situated,
competitor Cubic-Tavleproduktion A/S. Conditioned by a satisfying due
diligence, the transaction will be concluded on the
1st of October, 2001.

Through this acquisition, one of Denmark's largest and probably
strongest control panel builder has been created. The new company will
have a turnover of 110 MDKK and employ around 125 people. The
acquisition will contribute to Hexagon's earnings from start.

For further information, please contact:

Gert Viebke, Hexagon AB Börje Vernet, CEO, Dacke
Hydraulik AB
Tel: 08 - 601 26 20 Tel: 042-38 15 50

Hexagon AB is a multinational engineering group with the long-term
ambition of positioning itself as number one or number two within its
strategies sector. The operation is divided into four business areas:
Hexagon Automation, Hexagon Engineering, Hexagon Wireless 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 SEK billion p.a.