The Board of Directors' proposal for a redemption procedure

The Board of Directors' proposal for a redemption procedure

Stockholm, Sweden, February 2, 2011: The financial position of Atlas
Copco is strong and therefore the Board of Directors proposes to the
Annual General Meeting a redemption procedure.

Atlas Copco has generated significant cash flows both during the
financial crisis and during the fast growth of 2010. Without
jeopardizing the capacity to finance further growth, the Board of
Directors proposes to the Annual General Meeting a share redemption
procedure, whereby every share is split into 1 ordinary share and 1
redemption share. The redemption share is then automatically redeemed at
SEK 5.00 per share. Excluding shares currently held by the company this
corresponds to a total of MSEK 6 092. Combined with the proposed
ordinary dividend of SEK 4.00 per share, shareholders will receive MSEK
10 966.
The redemption is subject to approval at the Annual General Meeting 2011
on the following:

  · Amendment of the Articles of Association, so that the permitted
range of number of shares is increased from a minimum of 300 million and
a maximum of 1.2 billion to a minimum of 1.0 billion and a maximum of
4.0 billion. At the same time, the maximum number of series A shares, as
well as of series B, is increased from 2.0 billion of each to 4.0
billion of each.
  · Share split, through which each existing share, of series A as well
as of series B, will be divided into two shares, of which one will be
named redemption share.
  · Reduction of the share capital for repayment to the shareholders by
way of redemption of 1 229 613 104 shares, whereby shares of series A
and series B will be redeemed in proportion to the number of shares of
the respective series issued.
  · Increase of the share capital by SEK 393 004 095 by way of a bonus
issue, whereby the Company's non-restricted equity is to be made use of.

The suggested record day for the share split is May 13, 2011. Trading in
the redemption shares is estimated to take place on NASDAQ OMX Stockholm
on May 16 - June 8, 2011, after which the redemption shares will
automatically be redeemed. The payment of the redemption price is
estimated to be made around June 15, 2011.

For further information please contact:
Hans Ola Meyer, Chief Financial Officer
+46 (0)8 743 8292 or +46 (0)70 588 8292
Ingrid Andvaller, Investor Relations Manager
+46 (0)8 743 8290 or +46 (0)70 497 8290