Nefab acquires company in Spain

Nefab has signed an agreement to acquire all shares in the packaging company Mediterranean Goods SA in Barcelona, Spain. Sellers are four private persons. Mediterranean Goods supplies packaging solutions to customers mainly in the automotive and electronics industry segments.The company’s main market is concentrated to Catalonia and operations generate sales slightly above 4 M EUR annually. In 2005 profit after financial net amounted to approximately 0,3 M EUR. The price paid for the acquired entity is 2,0 M EUR and shall be paid on admission day, plus additional purchase price based on company profit in 2006, maximum 0,6 M EUR. The additional purchase price shall be paid in March 2007. The acquisition creates surplus value of 1,5 M EUR plus possible additional purchase price. The acquisition is expected to give a positive contribution to Nefab’s earnings per share in 2006. The acquisition is a step in Nefab’s strategy to increase the presence on the European market while at the same time broadening the product range and the product competence. Mediterranean Goods supplies mainly shock absorbing material and corrosion protection, both important product areas in Nefab’s market offer. The acquired entity will gradually be integrated in Nefab SA, operating a similar kind of business from its factory and office in Madrid since 1980. “Mediterranean Goods is a good complement to our present business in Spain. We are broadening the product range and strengthening our presence in Catalonia”, says Lars-Åke Rydh, President and CEO of Nefab. After the acquisition Nefab’s sales on the Spanish market amounts to approximately 16 M EUR. For further information, contact VD Lars-Åke Rydh, +46-70-592 45 70, e-mail, or CFO Anna Stålenbring, +46-70-814 23 44, e-mail Jönköping, February 14, 2006 Lars-Åke Rydh President and CEO


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