Atlas Copco strengthens production in India

Atlas Copco strengthens production in India

Stockholm, Sweden, September 14, 2007: Atlas Copco announced today it has
modernized and concentrated manufacturing at its two production sites in India,
creating local centers of competence for compressor and construction and mining
technology. The Group will also build a new plant for road construction
equipment.

“India is one of our most important growth markets, where we have doubled in
size over the last three years,” says Gunnar Brock, President and CEO of Atlas
Copco. “By focusing our factories we will be able to introduce more new products
to our customers, and it gives us a strong base to support future growth in the
country.”

Investments have been made into state-of-the-art machinery and new factory
buildings amounting to approximately MSEK 90 (MUSD 13). Production has in the
process also been transferred between the sites, located in Pune and Nasik,
allowing them to focus entirely on compressors and construction and mining
equipment respectively. 

The facility for production of compressors in Pune, 220 km southeast of Mumbai,
is being inaugurated today, and the ceremony will be attended by senior Atlas
Copco managers, members of Indian media and officials representing the
Maharashtra state. The refurbished production site in Nasik, 160 km northeast of
Mumbai, will be inaugurated on September 26.

In Nasik, work will now begin to establish local manufacturing of Dynapac pavers
and soil and asphalt rollers, an investment of approximately MSEK 26. Production
is expected to begin in the second half of 2008. Dynapac was acquired earlier
this year to form Atlas Copco's new division Road Construction Equipment.

“Having local production in India will enable Dynapac to better serve its
customers and to increase its share of the rapidly growing Indian road
construction equipment market,” Brock says. 

Atlas Copco currently has more than 1 200 employees in India. Orders received
last year increased 46%, with strong growth for all business areas: Compressor
Technique, Construction and Mining Technique and Industrial Technique.

For further information please contact:
Daniel Frykholm, Media Relations Manager 
+46 (0)8 743 8060 or +46 (0)708 65 8060

Atlas Copco is a world leading provider of industrial productivity solutions.
The products and services range from compressed air and gas equipment,
generators, construction and mining equipment, industrial tools and assembly
systems, to related aftermarket and rental. In close cooperation with customers
and business partners, and with more than 130 years of experience, Atlas Copco
innovates for superior productivity. Headquartered in Stockholm, Sweden, the
Group's global reach spans more than 150 markets. In 2006, Atlas Copco had 25
900 employees and revenues of BSEK 51 (BEUR 5.6). Learn more at
www.atlascopco.com.