Sandvik to Acquire North American Tool Company Valenite

Sandviken, SWEDEN

STOCKHOLM, Sweden, June 18, 2002 (PRIMEZONE) -- Sandvik has signed an agreement with Milacron Inc., U.S.A, to acquire its North American metalcutting tools business Valenite. The acquisition is subject to approval of the antitrust authorities.

Valenite is a leading supplier of highly engineered metalcutting tooling solutions to the North American market. The company, with about 1,300 employees, has its head office in Madison Heights, Michigan, U.S.A and manufacturing facilities in South Carolina, Michigan and Texas. In 2001 the company posted revenues of approximately SEK 2,000 M (USD 200 M) with an operating profit of SEK 30 M (USD 3 M). While 2001 results were strongly affected by the recession in North America, the business historically achieved an average operating margin of around 10 percent.

Sandvik intends to operate Valenite as a separate company within its Sandvik Tooling business area. Valenite will retain its own identity and continue to operate its own R&D, manufacturing, marketing and distribution channels.

Sandvik acquires Valenite for SEK 1,750 M (USD 175 M). Goodwill is preliminarily estimated at approximately SEK 1,000 M (USD 100 M) after restructuring costs. While the acquisition is expected to be marginally dilutive to Sandvik's earnings in the first year, Sandvik is confident that Valenite can achieve margin enhancements above the historic trend within a few years. The planned margin improvement will be driven by the ongoing efficiency program and operational cooperation with Sandvik Tooling, including production, technology, logistics and R&D.

"Through the acquisition of Valenite, we will enchance our position in the North American market. Valenite is a very well-known brand and the company has a strong sales and marketing organization. Valenite will enhance the current operations of Sandvik Tooling within the metalcutting industry by broadening our customer base, especially in the automotive industry. Through its global strength, Sandvik will enhance Valenite's product program and competitive ability and further develop the total offering to the customer," said Anders Thelin, President of the Sandvik Tooling business area.

JPMorgan acted as financial advisor to Sandvik in this transaction.

Sandviken, 18 June 2002

Sandvik AB; (publ)

For additional information, please contact Lars Pettersson, President and 
CEO Sandvik AB, telephone +46 26 26 10 01.

A telephone conference will be held today, Tuesday 18 June at 14.00 hrs (CET). Please call +44 208 781 0571, password: Sandvik. An instant replay will be available on +44 208 288 4459, access code 647732. The replay is available for 3 working days.

Sandvik is a high-technology engineering group with advanced products and world-leading positions in selected areas - tools for metalworking, machinery and tools for rock excavation, stainless steel, special alloys and resistance heating materials and process systems. The Group has 36,000 employees, with annual sales of approximately SEK 50,000 M (USD 5,000 M).

Sandvik Tooling is a Business Area within the Sandvik Group, containing Sandvik Coromant, Sandvik CTT, Walter and Sandvik Hard Materials. Annual sales are about SEK 19,000 M (USD 1,900 M) with 15,000 employees. The Business Area is a world-leading manufacturer of tools and tooling systems for metalworking applications as well as of blanks and components. Products are manufactured in cemented carbide, high-speed steel and other hard materials such as diamond and special ceramics.

First incorporated in 1884, Milacron Inc. is a leading technology supplier to the plastics-processing and metalworking industries throughout the world. The company has major manufacturing facilities in North America, Europe and Asia.

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