European Commission announces decision regarding earlier communicated competition investigation

European Commission announces decision regarding earlier communicated
competition investigation

Today, the European Commission announced a decision in its ongoing, earlier
communicated, competition investigation regarding certain types of marine oil
hoses. The investigation began in May 2007 and Trelleborg has awaited the
decisions of authorities during a longer period.

According to the Commission's announcement, one of the Trelleborg Group's French
subsidiaries participated in illegal price cooperation for certain types of
marine oil hoses. The European Commission has set the fine for the subsidiary at
EUR 24.5 M. 

Trelleborg has however not yet received the complete decision. Accordingly, we
can not yet comment on the measures that will be taken as a result of the
decision or whether it will be appealed. Trelleborg awaits receipt of the
complete decision. We will provide information on further actions when the
complete decision has been received and analyzed. 

Trelleborg is also affected by ongoing investigations by e.g. the US Department
of Justice into the competitive conditions for certain types of marine oil hoses
and certain types of marine fenders. However, the European Commission's decision
is completely independent of that of the US authorities. Trelleborg has
continuously assisted the US authorities, and we await their decision on the
matter. 

Based on the knowledge of the abovementioned decision by the European
Commission, Trelleborg is making a downward adjustment of the total cost
estimate communicated earlier. In addition to costs of SEK 100 M already
charged, our total additional costs related to violations of competition law are
expected to amount to approximately SEK 400 M. This amount includes the
abovementioned EU fines, fines and expenses in the US and other affected
countries, and damages and legal expenses. This assessment is still subject to
uncertainties relating to length and outcome of ongoing processes.

(Earlier assessment: 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, that amounted to SEK 1,193 M.)

“It is good that we now have received a decision on this issue,” says Peter
Nilsson, President and CEO of the Trelleborg Group. “Clearly, competition
violations are completely unacceptable, and we have in an open way assisted the
authorities with their investigations. We have also taken significant internal
actions to minimize the risk that this could happen again.” 


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 had annual sales 2007 of
approximately SEK 31 billion, with about 25,000 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 


For further information, please contact: 
Media:  Vice President Mikael Sjöblom, +46 410  670 15, +46  733  74 70 15,
mikael.sjoblom@trelleborg.com
Investors/analysts: Vice President IR Conny Torstensson, +46 410  670 70, +46
734  08 70 70, conny.torstensson@trelleborg.com