Sandvik clarifies: no increased tax cost

Sandvik clarifies: no increased tax cost

In 2005, Sandvik AB conducted a reorganization of the ownership and management
of intellectual property rights. All Swedish-owned patents and brands were
transferred to Sandvik Intellectual Property AB (the IP company). The reason for
the reorganization was the need to streamline intellectual property operations
into a separate company, which emphasizes the considerable values of
intellectual property rights and generates operative gains.

The Swedish National Tax Board has approved Sandvik's income tax return for
2005. The National Tax Board subsequently appealed its own tax ruling through
the Public Attorney with regard to the effect of the reorganization set forth
above. If the appeal is approved, it would not impact Sandvik's earnings. If
this is the case, the additional tax expense of SEK 5 billion would, according
to Sandviks opinion, correspond to the taxable value of amortizations in the IP
company. If Sandvik's view is accepted by the court, it would entail a reduction
in Sandvik's tax expense of approximately SEK 5 billion, which will be taken up
as revenue in the Group when the Court order has gained legal force.

Sandviken, 9 January 2008

Sandvik AB; (publ)


For further information, contact Anders Wallin, Vice President Group
Communications, Sandvik AB, 
tel +46 26 26 09 20 


Sandvik is a global industrial group with advanced products and world-leading
positions in selected areas - tools for metal cutting, machinery and tools for
rock excavation, stainless materials, special alloys, metallic and ceramic
resistance materials as well as process systems. The Group had at the end of
2006 about 42,000 employees and representation in 130 countries, with annual
sales of more than SEK 72,000 M.