CONCENTRIC CONSOLIDATES ITS HYDRAULICS CAPACITY IN EUROPE

Concentric AB today announces that it intends to close its hydraulics assembly
plant in Skånes Fagerhult, Sweden in response to the economic downturn.
“We sincerely regret the impact this action will have on our employees in Skånes
Fagerhult,” says David Woolley, Chief Executive Officer. “However, declining
market conditions allow that we now consolidate our hydraulics capacity in
Europe, which will better align our production with the market and help improve
our long-term competitiveness.”

The closure is expected to be completed in the second quarter of 2013. 70 people
will be affected by the closure.

The plant closure is still subject to consultation with employee works council
and unions. Concentric expects to take non-recurring charges in the range of SEK
30 million to SEK 40 million. These charges include relocation costs for
equipment and tooling, severance and retention payments to employees, non-cash
asset write-offs and other costs related to the plant closure. Concentric
anticipates annual savings of SEK 20 million beginning in mid-2013 once the
relocation is completed.

For further information, please contact:

Wim Goossens (SVP Europe & Rest of World) at tel: +33 6 71 00 48 75 or Lena
Olofsdotter (SVP Corporate Communications), at tel: +46 708 326 854.
About Concentric

Concentric is an innovator in flow control and fluid power, supplying
proprietary systems and components for trucks, buses and industrial vehicles,
worldwide. The company encompasses two technology/product areas, hydraulics and
pumps for diesel engines. The hydraulics range is supplied under the Haldex
brand name and the pumps are branded Concentric.

With 1,220 employees and annual sales of over SEK 2.2 billion, Concentric AB is
listed on the Stockholm Stock Exchange (www.concentricAB.com).