2007 Annual General Meeting of shareholders in Sandvik

2007 Annual General Meeting of shareholders in Sandvik

Sandvik AB's Annual General Meeting, held in Sandviken on 26 April, approved a
dividend of SEK 3.25 per share for 2006. The record date for payment of the
dividend is Wednesday, 2 May. The dividend is expected to be mailed to
shareholders by VPC on Monday, 7 May. Moreover, the Annual General Meeting voted
in accordance with the Board's proposal of an automatic redemption procedure,
which means that an additional SEK 3 per share will be distributed to Sandvik's
shareholders. See further, below.

In his speech, Lars Pettersson, President and CEO, commented on the 2006 fiscal
year and on the company's performance in the first quarter of the year. The
presentation included a report on the Group's business concept and future
development. With a strong product portfolio and focused R&D investments,
Sandvik offers high customer value to a global customer base, making it
well-positioned to continue its trend of profitable growth. The Group's
financial strength makes it possible to combine a generous dividend policy and
an aggressive growth strategy based on corporate acquisitions and investments.

Hanne de Mora, Georg Ehrnrooth, Sigrun Hjelmquist, Fredrik Lundberg, Egil
Myklebust, Anders Nyrén, Lars Pettersson and Clas Åke Hedström were re-elected
members of the Board, with Clas Åke Hedström as Chairman.

The unions appointed Tomas Kärnström and Göran Lindstedt as members of the Board
and Mette Ramberg and Bo Westin as deputy members of the Board.

Decision on the Nomination Committee
The Annual General Meeting decided that the four largest shareholders known to
the Company shall each appoint one member, and that the Nomination Committee
shall consist of these members plus the Chairman of the Board, who is also the
convener for the Committee.

Decision on the principles of remuneration and other employment conditions for
Group management
The Annual General Meeting voted to approve the Board's proposal regarding
principles of remuneration, etc., for Group management.

Decision on automatic redemption procedure
The Annual General Meeting resolved in accordance with the Board of Directors'
proposal of an automatic redemption procedure. Through the automatic redemption
procedure SEK 3 per share, approximately SEK 3.6 billion, will be distributed to
the Sandvik shareholders, in addition to the ordinary dividend distribution of
SEK 3.25 per share, which corresponds to SEK 6.25 per original share.  

In brief, the redemption procedure means that:
• The company carries out a share split 2:1.
• Every other share, the redemption share, will be automatically redeemed for
SEK 3.
• The record day for the share split is 22 May 2007.
• Shareholders who wish to sell their redemption shares before redemption takes
place will be able to do so during the period 23 May - 12 June 2007, when the
redemption share will be listed at the Stockholm Stock Exchange.
• Payment of the redemption amount is planned to take place 20 June 2007.

The resolution of the Annual General Meeting included the following:
• Change of the Articles of Association so that the range of the share capital
is reduced from a minimum of SEK 1.2 billion - a maximum of SEK 4.8 billion to a
minimum of SEK 700 million - a maximum of SEK 2.8 billion.
• Division of each existing share into two shares (share split 2:1), of which
one is to be named redemption share.
• Reduction of the share capital by SEK 711,772,305 for repayment to the
shareholders by redemption of all existing 1,186,287,175 redemption shares. In
addition to the reduction amount, SEK 2,847,089,220 will be distributed from the
non-restricted equity.
• Increase of the share capital by SEK 711,772,305 by way of a bonus issue,
whereby part of the non-restricted equity will be used. No new shares are to be
issued in connection with the bonus issue. 

Statutory meeting of the Board of Directors
A statutory meeting of the Board of Directors was held following the Annual
General Meeting. Anders Nyrén, Fredrik Lundberg and Sigrun Hjelmquist were
appointed members of the Audit Committee. Clas Åke Hedström, Georg Ehrnroth and
Egil Myklebust were appointed members of the Remuneration Committee. Anders
Nyrén was elected as deputy chairman of the board.  

Wilhelm Haglund Medal
Timo Soikkeli from Sandvik Mining and Construction was appointed Product
Developer of the Year and awarded the Wilhelm Haglund Medal for the development
of AutoMine, an automated production system for loading and hauling of ore in
underground mines. Brett Cook and Riku Pulli received Honorable Mention for
their contributions to its development.


Sandviken, 26 April 2007

Sandvik AB (publ)