Reference is made to the press release by Sapa AB dated 5 February, 2008, regarding the signing of a letter of intent to acquire the Chinese extrusion company Kam Kiu Aluminium. Sapa has now called-off its attempt to acquire the company.

Sapa AB has performed due diligence on Kam Kiu Aluminium over a period of seven months. This process has confirmed the strong capabilities of Kam Kiu, the strategic rationale of the acquisition and the opportunities that it presents for Sapa. In spite of this, unfortunately the parties involved have not succeeded in agreeing upon the terms required to complete the transaction.

“It is unfortunate that we are not able to complete the acquisition of Kam Kiu at this time as we intended. Sapa AB will, however, continue its aggressive growth plans in China, in particular within fabricated products. Over the last few months there has been extensive communication between the Kam Kiu and Sapa organisations, and a number of business opportunities in...