Höganäs acquires

7/20/2000 1:26 PM EST

HÖGANÄS ACQUIRES SPECIALTY POWDER MANUFACTURER IN UK

Höganäs has made an agreement with Wilshaw PLC, UK, to acquire the assets
of Wilshaw's subsidiary Powdrex Ltd.

Powdrex is the world's leading manufacturer of unique high-speed steel
powders, which are used principally for hardfacing valves and valve seats
in vehicle engines. Powdrex' product range represents an important
complement to the products made by Höganäs' Coldstream Division. The
acquisition is a step in the Coldstream Division's growth strategy. It
will provide Höganäs with significant knowledge that can be applied in
related development projects, while transfer of Höganäs' process know-how
will further enhance the efficiency of Powdrex' operations.

Powdrex recorded turnover was for year end 31 March 2000 more than 4.0
MGBP (55 MSEK). Powdrex has about 35 employees. The purchase price amounts
to 8 MGBP (108 MSEK).

Höganäs, 20 July 2000
Claes Lindqvist
President and Chief Executive Officer