Board proposes bonus issue and authorization for issue of new shares

The Husqvarna Board of Directors proposes that the Annual General
Meeting on 19 April 2007 resolves on a bonus issue of 88,877,745 A-shares. The
bonus issue will increase the share capital by SEK 177,755,490, which
will be obtained through re-allocation of funds from unrestricted equity
according to the most recently adopted balance sheet.

The following conditions shall apply to the bonus issue:
· Each existing A- or B-share shall entitle to one (1) bonus share
right for A-shares. Ten bonus share rights shall entitle to three (3)
new A-shares.

· Shareholder’s bonus share rights that are not multiples of ten shall
be sold through the company and the funds received shall be allocated
net of sales costs to the shareholders whose bonus share rights have
been sold.

· The new shares shall entitle to dividend from and including the
financial
year 2007.

Record date
The record date proposed for the bonus issue is 16 May 2007. The last
day of trading in the Husqvarna share including the right to participate
in the bonus issue will then be 11 May 2007. The first day of trading
excluding this right will be 14 May 2007.

Effects on the share structure
Following the bonus issue, the number of A-shares will correspond to
25.5% of the capital and 77.4% of the votes, as compared to the current
3.2% of the capital and 24.9% of the votes.


Before bonus issue After bonus issue
Share Number % votes % cap Number % votes % cap
series

A-shares 9,502.275 24.9 3.2 98,380,020 77.4 25.5
B-shares 286,756,878 75.1 96.8 286,756,875 22.6 74.5
Total 296,259,153 100 100 385,136,895 100 100



Effects on share price and key ratios
Following the bonus issue, the number of shares in Husqvarna will
increase, which will lead to a decrease in the share price. At an
assumed share price before the bonus issue of SEK 110, the new
theoretical share price can be calculated at approximately SEK 85, i.e.
110 x10 / (10+3).

Key ratios based on the number of shares will also be affected, for
example:

Key ratio Before bonus issue After bonus issue
Earnings per share, SEK 6.29 4.83
Equity per share, SEK 21.10 16.23



Amendment of articles of association
In order to enable the bonus issue from a technical perspective, the
Board of Directors proposes that:

o the last section of § 5 of the Articles of Association shall be
deleted,
to enable issuing only one class of shares by way of a bonus issue
o three shares be redeemed without payment in order to obtain an even
number of shares

Authorization for new share issue
The Board of Directors also proposes that the Annual General Meeting
authorize the Board to resolve on the issue of not more than 38.5
million new A- and/or B-shares, on one or more occasions, during the
period until the Annual General Meeting in 2008. The purpose of the
authorization is to facilitate acquisitions where payment will be made
in own shares. The price for the new shares shall be based on the
prevailing market price of the Husqvarna share.


More information on the above mentioned proposals will be available well
in advance of the Annual General Meeting.


For more information, please contact Bernt Ingman, Chief Financial
Officer at +46 36 14 65 05.




Husqvarna is the world’s largest producer of lawn mowers, chainsaws and
portable petrol-powered garden equipment such as trimmers and blowers.
The Group is also a world leader in diamond tools and cutting equipment
for the construction and stone industries. Net sales in 2005 were SEK
28.8 billion and the average number of employees was 11,700.

About Us

Husqvarna Group is a global leading producer of outdoor power products and innovative solutions for forest, park and garden care. Products include chainsaws, trimmers, robotic lawn mowers and ride-on lawn mowers. The Group is also the European leader in garden watering products and a global leader in cutting equipment and diamond tools for the construction and stone industries. The Group’s products and solutions are sold under brands including Husqvarna, Gardena, McCulloch, Poulan Pro, Weed Eater, Flymo, Zenoah and Diamant Boart via dealers and retailers to consumers and professionals in more than 100 countries. Net sales in 2016 amounted to SEK 36bn and the Group has around 13,000 employees in 40 countries.

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