TOMRA expands into California

TOMRA has signed a letter of intent with Wise Recycling LLC to acquire the company`s west-coast operations which consist of activities in California and the four non-deposit states Colorado, Washington, New Mexico and Hawaii with revenues in 1997 of USD 40 million. Today, TOMRA has no activities in California, which is the largest US deposit state. Currently, collection of used beverage containers is handled through an established structure of manual collection- and recycling centers as opposed to through reverse vending machines in other deposit states. The present structure provides relatively modest operating margins.

The operations consist of 147 collection centers and 7 processing facilities with approximately 250 employees. It is anticipated that the transaction will be an asset only acquisition with no goodwill.

Negotiations are expected to be finalized before end of February. A positive conclusion of this acquisition will be an important element in TOMRA`s California strategy and also for development of a non-deposit strategy.

TOMRA announces preliminary 1997 figures Friday, 20 February, 1998 at 08.00 am.

Asker, 16 February 1998

Erik Thorsen
President & CEO