Statement by the Board of Arcam in relation to the increased offer by GE of SEK 300 per share


The Board of Arcam unanimously recommends the shareholders of Arcam to accept
the increased offer by GE
Background

This statement (the “Statement”) is made by the Board of Directors (the “Board”)
of Arcam AB (publ) (“Arcam” or the “Company”) pursuant to Section II.19 of
Nasdaq Stockholm’s Takeover Rules (the “Takeover Rules”).

On September 6 2016, General Electric Company announced, through its wholly
-owned subsidiary General Electric Sweden Holdings AB (“GE”), a public cash
offer to Arcam’s shareholders to transfer their shares in Arcam to GE for a
consideration of SEK 285 per Arcam-share (the ”Offer”). On 18 October 2016, GE
announced the outcome from the initial acceptance period in the Offer where the
number of submitted shares in the Offer, together with the shares which GE has
acquired in the market, amounted to approximately 40.42 percent of the total
number of outstanding shares in Arcam. In connection herewith, GE extended the
acceptance period up to and including 1 November 2016. On 27 October 2016, GE
announced an increase of the consideration under the Offer to SEK 300 per Arcam
-share, further extended the acceptance period up to and including 10 November
2016 as well as lowered the acceptance threshold condition to a minimum of 75
percent. For additional information regarding GE’s Offer and the conditions for
the Offer, please refer to GE’s press release of 6 September 2016, GE’s press
release of 18 October 2016, GE’s press release of 27 October 2016 as well as
GE’s offer document in respect of the Offer. All these documents are available
at www.geaviation.com/additive/arcam-ab.

The Board’s evaluation of the increased Offer

The Board has previously unanimously recommended the Arcam shareholders to
accept the Offer by GE of SEK 285 per share. For more information about the
Board’s assessment of GE’s Offer and the reasons for its recommendation,
including its opinion on the effects the implementation of the Offer may have on
Arcam, specifically employment, and its views on GE’s strategic plans for Arcam
and the effect these may be expected to have on employment and the places where
Arcam conducts its business, please refer to the Board’s statement of 6
September 2016 which is available at http://www.arcamgroup.com/investor
-relations/press-releases/

GE’s increase of the Offer to SEK 300 per Arcam-share corresponds to a premium
of 76.16 percent compared to the volume weighted average price of SEK 170.30
during the last 30 trading days prior to the announcement of the Offer on 6
September 2016. The Board of Arcam reiterates its unanimous recommendation to
the shareholders to accept the offer by GE and notes that the condition for the
acceptance threshold has been lowered to a minimum of 75 percent. However, each
of Arcam’s shareholders is responsible for weighing the advantages and
disadvantages and making their own decision as to whether to accept or reject
the Offer, considering the totality of the circumstances, their own individual
circumstances and their personal assessment of the market conditions and the
opportunities for future development of the share price of Arcam. The Board does
not assume any responsibility for whether an acceptance or a rejection of the
Offer subsequently would prove to be financially unfavorable.

In addition, it can be noted that several institutional investors, among them
Första AP-fonden and Handelsbankens Fonder, have accepted and recommend the
Offer.

This Statement shall in all respects be governed by and construed in accordance
with substantive Swedish law. Disputes arising from the Statement shall be
settled exclusively by Swedish courts.

Arcam has retained Carnegie Investment Bank as financial adviser and Baker &
McKenzie as legal adviser.
For further information:

Magnus René, CEO and President, Arcam
Cell: 46 702 79 89 99 or 1 781 266 6957
E-mail: magnus.rene@arcam.com
Arcam Group provides cost-efficient Additive Manufacturing solutions for
production of metal components. Arcam’s Electron Beam Melting (EBM®) technology
offers design freedom combined with excellent material properties and high
productivity. Arcam is, through its solution orientation and comprehensive
product offering, an innovative partner for advanced manufacturing, primarily
for the aerospace and medical industries. Arcam offers EBM systems through Arcam
AB in Sweden, powder metals through AP&C in Canada and implant contract
manufacturing through DiSanto in the U.S.The company is listed on Nasdaq
Stockholm and the Head Office is located in Mölndal, Sweden.

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Arcam AB • Krokslätts Fabriker 27A • SE-431 37 Mölndal, Sweden • 46-31-710 32 00
• www.arcam.com

Attachments

10313579.pdf