Purchase of shares and option scheme

3/24/2000 5:27 AM EST

Repurchase of shares and option scheme

In its Year End Report dated 10 February 2000 the Board of Höganäs AB
announced that it intended to ask the Annual General Meeting for
authorization enabling the Board to buy and sell the Company's shares in
accordance with a forthcoming amendment to the Swedish Limited Companies
Act.

The Board has decided today to propose to the Annual General Meeting that
the Board be granted authorization during the period until the next Annual
General Meeting to purchase and sell shares of Class B in the Company on
one or more occasions. Such purchases are to be made on the OM Stockholm
Stock Exchange at the price quoted on the stock market at the time of
purchase. The purpose of repurchase is to provide greater freedom of
action for management of the Company's capital structure and to cover the
Company's commitment in connection with the option scheme for senior
executives suggested below. Besides, the repurchase gives the company a
possibility to use the shares as financing of future acquisitions.

Sales of the Company's own shares may be made only to finance acquisition
of companies or
businesses and to fulfil commitments according to the suggested option
scheme.

Purchases may be made subject to the limitation that the Company's
holdings of its own shares do not at any time exceed 10 percent of all the
shares in the Company.

The Board has further decided to ask the Annual General Meeting to resolve
that not more than 600 000 options to purchase be issued to senior
executives of the Company.

Höganäs 24 March 2000

Claes Lindqvist
President and Chief Executive Officer