DaimlerChrysler and Höganäs sign agreement for development of new powder based manufacturing process

2/29/2000 7:40 AM EST

DaimlerChrysler and Höganäs sign agreement for development of new powder
based manufacturing process

DaimlerChrysler and Höganäs recently entered into a three-year development
contract. The objective is to bring a unique manufacturing process called
K3 up to an industrial level, including the development of tailor-made
metal powder feed stock. The development partners have contracted the
Materials Science Institute of Aachen University of Technology (RWTH
Aachen) to carry out R&D work.

The process has potential to produce protective coatings, as well as free-
standing components, with unique properties at a very competitive
production cost. The goal is to make this technology commercially
available by the end of year 2002 to companies in the DaimlerChrysler
group. Potential application areas include both automotive and aerospace
technology.

Höganäs, 29 February 2000

Claes Lindqvist
President and Chief Executive Officer