Statement from the Board of Directors of Graninge AB regarding the Offer

11/5/2003 5:09 AM EST

For many years the Graninge Group has enjoyed favourable development.
The Board has no reason to believe that this will not continue,
particularly considering that the Group's operations are to a
significant extent based on renewable energy in the form of hydropower.

Individual assessment of the Offer can vary depending on the respective
shareholder's yield requirements, alternative investment opportunities
and tax situation.

In an overall evaluation, where consideration is also given to the
concentrated ownership, the Board has come to the conclusion that the
Offer represents a fair future value.

The board recommends that the shareholders accept the offer.

Sollefteå, 5 November 2003

The board of directors of Graninge AB

For additional information:
Lars Enslöf, VD Graninge AB, +46 (0)8-753 50 04, +46 (0)70-593 15 46