Information relating to ongoing competition investigation of subsidiaries


Information relating to ongoing competition investigation of subsidiaries

Subsequent to the Board meeting in Trelleborg AB, the following updated
information pertaining to the ongoing competition investigation of subsidiaries
is submitted:

As announced in a press release from Trelleborg on May 3, in May 2007, the
Justice Department in the US and the competition authorities in the European
Union initiated investigations relating to an alleged cartel for certain types
of marine hoses used to transport oil. The competition authorities in Japan and
the UK have also initiated investigations. The investigations encompass several
international companies, including one of Trelleborg's French subsidiaries,
Trelleborg Industrie SAS. The two senior executives at Trelleborg Industrie SAS
who were arrested while in the US are still in the US and have restrictions on
their freedom.

As Trelleborg has also reported on since August 2005, one of the Group's
subsidiaries in the US has been the subject of an investigation by the US
Justice Department with regard to a cartel for certain types of marine fenders.
Over the course of the investigation, the former President of the company has
admitted complicity in criminal cartel activities. In accordance with the
Group's policy, his employment has been terminated and he has left the company.
As a result of the investigation, the concerned subsidiary is temporarily
suspended as a supplier to the US public sector. 

Trelleborg is assisting the authorities in the US and European Union in their
investigations on a continuous basis and also continues to take appropriate
actions and investigations in respect of these issues. 

Trelleborg takes a very serious view of infringements of competition legislation
and already has a very clear and well-communicated set of rules and regulations
to ensure conformity to applicable competition laws. However, as a result of
these events, the Board and management have also decided to significantly
reinforce the existing action program with the aim of further increasing
knowledge of prevailing competition legislation and to strengthen the Group's
internal processes and control system.

Against the background of the content of the material to which the authorities
have access, and based on privileged consultations  with Trelleborg's legal
representatives, it can be expected that the authorities' investigations of the
US subsidiary, a manufacturer of marine equipment including certain types of
fenders, and of the French subsidiary, whose operation to a limited extent
comprises the manufacture of certain types of marine hoses to the oil industry
may lead to members of the group incurring cost.  

The operations targeted by the investigation account for a small part of the
Trelleborg Group and have combined annual sales of slightly more than SEK 300 M.
It is at present unclear when any improper behaviour was commenced but if
irregularities have been ongoing over an extended period, this is expected to
increase the level of possible costs for Trelleborg.

In the current phase of the investigations, it is impossible to accurately
assess the final financial impact. However, based mainly on the assessment of
Trelleborg's external legal representatives, it can be assumed that the ongoing
investigations may lead to the Group incurring significant costs of a
nonrecurring nature in gradual stages during 2007 and 2008. Currently, all
estimations of the possible financial impact involve considerable uncertainty,
but the potential combined financial impact could reach amounts that correspond
to a predominant proportion of the Group's pre-tax profits for 2006. 

In addition, expenses for the ongoing investigations and the adopted action
program are estimated to amount to between approximately SEK 75 M and SEK 100 M
during 2007 and 2008. The bulk of these expenses are external expenses for
investigations in progress and provisions will be posted in the interim accounts
for the first six months of 2007. Costs for the adopted action program will be
expensed as they arise.

As long as the authorities' investigations continue, Trelleborg has decided to
further refrain from commenting on its progress or results.


Further information can be obtained from Viktoria Bergman, Trelleborg's Senior
Vice President, Corporate Communications, +46 (0)410-670 94, +46 (0)708-47 57
33, or from Mikael Byström, Trelleborg's Senior Vice President Investor
Relations, +46 (0)410-670 37, +46 (0)708-55 21 69. 

Trelleborg is a global industrial group whose leading positions are based on
advanced polymer technology and in-depth applications know-how. Trelleborg
develops high-performance solutions that seal, damp and protect in demanding
industrial environments. The Trelleborg Group has annual sales of approximately
SEK 27 billion, with about 23,000 employees in 40 countries. The Group comprises
four business areas: Trelleborg Engineered Systems,Trelleborg Automotive,
Trelleborg Sealing Solutions and Trelleborg Wheel Systems. The Trelleborg share
has been listed on the Stockholm Stock Exchange since 1964 and is listed on the
OMX Nordic List, large cap. 

www.trelleborg.com 

Attachments

06252323.pdf