Ferronordic Machines becomes official distributor of Dressta

Press Release

Stockholm, 14 July 2016
Ferronordic Machines has entered into a distribution agreement with LiuGong
Dressta Machinery under which Ferronordic Machines is appointed the official
distributor of Dressta-branded bulldozers and pipelayers in all of Russia. The
new partnership adds to Ferronordic Machines’ product offering a full range of
crawler bulldozers and crawler pipelayers.

Headquartered in Stalowa Wola, Poland, Dressta is a global manufacturer of
dozers and pipelayers. With a heritage of cooperation and licensing agreements
with International Harvester Company and Clark Equipment, Dressta has nearly 70
years of experience in designing and manufacturing bulldozers and other
construction equipment. Since 2012, Dressta is owned by LiuGong Machinery Co.

Throughout its long history, Dressta has a proven track record in the CIS
markets, having delivered around 14,000 units of machinery in Russia and the
CIS. As the official distributor, Ferronordic Machines will also take over
responsibility for the aftermarket support of the existing machinery population
of Dressta bulldozers and pipelayers in Russia.

Lars Corneliusson, CEO & President of Ferronordic Machines, commented on the
agreement: “The addition of Dressta bulldozers fits perfectly into our offering
of products from Volvo CE and Terex Trucks, and will notably improve our ability
to offer full-package solutions to our customers. This appointment is fully in
line with our strategy to use our extensive dealer network to distribute
complementary products”.

Howard Dale, Chairman of the Board of Directors of LiuGong Dressta Machinery,
said of the appointment: “We are very pleased to have Ferronordic Machines on
board in our global network: a fully-fledged and dedicated distributor and
leading service provider in the CIS region. I have no doubts that this
partnership will be beneficial for our customers in the region.”

About Ferronordic Machines

Ferronordic Machines is the authorized dealer of Volvo Construction Equipment
and Terex Trucks in Russia. It is also the official Russian distributor of
Dressta. In certain regions of Russia, Ferronordic Machines has also been
appointed aftermarket dealer for Volvo and Renault Trucks and dealer for Volvo
Penta. Ferronordic Machines began its operations in 2010 and has since then
expanded rapidly across Russia. The company is well established in all federal
districts with almost 70 outlets and approximately 700 employees. The vision of
Ferronordic Machines is to be regarded as the leading service- and sales company
in the CIS markets. The preference shares of Ferronordic Machines are listed on
NASDAQ OMX First North Premier. The company has appointed Avanza Bank AB as its
Certified Advisor.

www.ferronordic.com

For more information, please contact:

Anders Blomqvist, CFO and Head of IR, Tel: +46 8 5090 7280 or pr@ferronordic.com

Ferronordic Machines discloses the information herein pursuant to the Securities
Markets Act and/or the Financial Instruments Act. The information was submitted
for publication on 14 July 2016, 17:45 CET.