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Indutrade

M&A Activity Jun 2, 2008

2927_rns_2008-06-02_e3b617b1-4c28-4f4b-8454-e07974c7985f.pdf

M&A Activity

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Indutrade AB (publ) Box 6044, SE-164 06 Kista, Sweden Visitors' address: Raseborgsgatan 9 Phone: + 46 8 703 03 00 Fax: + 46 8 752 79 39 E-mail: [email protected] www.indutrade.se

The information provided herein is such that Indutrade AB (publ) is obligated to disclose pursuant to the Securities and Clearing Operations Act (SFS 1992:543) and/or the Financial Instruments Trading Act (SFS 1991:980). Submitted for publication at 9 a.m. on 2 June 2008.

Press release

Indutrade expands in measurement technology – makes largest acquisition since stock market introduction

Indutrade today signed an agreement to acquire all of the shares in Flintec Group AB. The Flintec Group has annual sales of approximately SEK 275 million and some 1,000 employees, most of whom (approx. 800) are at the Group's two manufacturing units in Sri Lanka. The Group also has sales and design companies in the US and the UK, and sales companies in Sweden and Germany. The company's products are marketed in other parts of the world via well-established distributors.

Flintec manufactures and markets measurement technology products. Customers work in a range of market segments, primarily weighing, automation, medicine, testing and measurement systems, transport and agriculture. Established in 1969, Flintec is distinguished by innovative design, customer-adapted solutions and world-class manufacturing.

The acquisition is the largest to date that Indutrade has made as a listed company. Indutrade's has an annual growth target of 10% over a business cycle and posted growth of 26% in 2007.

"Flintec has a strong position in its market segments and is a good fit in our efforts to increase the share of own brands. The acquisition will also help strengthen our geographic reach in the global market," says Johnny Alvarsson, President and CEO of Indutrade.

Following its entry to the Indutrade Group in July, Flintec will be part of the Special Products business area, which had net sales of SEK 1,322 million in 2007.

After the acquisition, Indutrade will have own brands in measurement technology with annual net sales of approximately SEK 570 million. The acquisition is expected to have a marginally positive impact on Indutrade's earnings per share in 2008.

Stockholm, 2 June 2008

INDUTRADE AB (publ)

For further information, please contact: Johnny Alvarsson, President and CEO, tel. +46-70 589 17 95.

Indutrade AB (publ) Box 6044, SE-164 06 Kista, Sweden Visitors' address: Raseborgsgatan 9 Phone: + 46 8 703 03 00 Fax: + 46 8 752 79 39 E-mail: [email protected] www.indutrade.se

About Indutrade

Indutrade markets and sells components, systems and services with a high-tech content within selected niches. Indutrade's business is distinguished by

  • High-tech products for recurring needs
  • Growth through a structured and tried-and tested acquisition strategy
  • A decentralised organisation characterised by an entrepreneurial spirit.

The Group is organised into four business areas: Engineering & Equipment, Flow Technology, Industrial Components and Special Products. Indutrade's sales totalled SEK 5,673 million in 2007, generating operating income of SEK 650 million before depreciation of intangible assets. Indutrade is listed on the OMX Nordic Exchange Stockholm.

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