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Sandvik Aktiebolaget (SDF)

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Tuesday 18 June, 2002

Sandvik Aktiebolaget

Sandvik to acquire North American tool company Val

Sandvik to acquire North American tool company Valenite

Sandvik has signed an agreement with Milacron Inc., USA, 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, USA 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, " says 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
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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