Cardo disposes of garage door production operation in UK

Cardo disposes of garage door production operation in UK 

The Residential Garage Doors division's garage door production operation in
Bowburn, UK, is being disposed of to the British company Bowburn Ltd.

As part of a plan to reduce production capacity and cut costs, Cardo entered
into consultation in December affecting 150 people at its garage door production
unit in Bowburn. Instead, this operation is now being disposed of to Bowburn
Ltd, which intends to continue producing garage doors at the unit. 

Bowburn Ltd is acquiring assets relating to garage door production in Bowburn
and taking over responsibility for human resources and products supplied, in
return for which Cardo is paying Bowburn Ltd approximately SEK 6 million. The
cost of the disposal, which will be charged to Cardo's earnings for 2008, is
estimated to amount to approximately SEK 43 million, whereof approximately SEK
36 million in impairment losses.

Cardo continues to own the rights to the Henderson brand. Under a licensing
agreement, Bowburn Ltd is entitled to use the brand when selling the type of
garage doors that was manufactured at Cardo's factory in Bowburn. 

Apart from garage doors, Cardo's division Residential Garage Doors also
manufactures sliding door gear in Bowburn. Manufacture and sales of sliding door
gear will not be affected by the disposal and Cardo will continue with this
activity.

The disposal is expected to give a positive effect on Cardo's earnings 2009 of
approximately SEK 15 million.

Malmö, Sweden, January 2 2009
Cardo AB (publ)



For further information, please contact: 
Peter Aru, President and CEO, tel +46 40 35 04 53 
Ulf Liljedahl, CFO and Executive Vice President, tel +46 40 35 04 42
Maria Bergving, Senior Vice President Communications & Investor Relations, 
tel +46 40 35 04 25, +46 70 602 61 81, maria.bergving@cardo.com


Cardo is an international group with leading brands, offering solutions with
quality products, a high level of service and great applications know-how to
industrial customers. Operations are pursued in the Group's divisions: Door &
Logistics Solutions, Wastewater Technology Solutions, Pulp & Paper Solutions and
Residential Garage Doors, which all enjoy strong positions in their respective
markets. The Group has approximately 6,000 employees in more than 30 countries
and sales of approximately SEK 9.5 billion. Corporate headquarters are located
in Malmö, Sweden.