Alfa Laval divests its engineering activity for the biopharm industry

Alfa Laval – a world leader in heat transfer, centrifugal separation and fluid handling – has taken the strategic decision to divest its engineering and validation services for the biopharm industry. The company is divesting this activity through a purchase agreement with the Management of this activity.

The primary reason for divesting the engineering activity for the biopharm industry, which comprises the offering of engineering and validation services, is the limited connection to Alfa Laval’s core business of process solutions and heat transfer, separation and fluid handling products. The divestment is not anticipated to have any negative impact on Alfa Laval’s Life Science activity.

The turnover of the divested activity is slightly more than MSEK 100 and it employs approximately 110 people.

The divestment will cause a non-recurring charge to the profit and loss statement in the fourth quarter 2006 of MSEK 120, of which MSEK 40 are direct costs connected with the divestment. The remaining part is a write-off of goodwill. The transaction is estimated to be finalized as per December 29, 2006.

About Alfa Laval
Alfa Laval is a leading global provider of specialized products and engineering solutions based on its key technologies of heat transfer, separation and fluid handling.
The company’s equipment, systems and services are dedicated to assisting customers in optimizing the performance of their processes. The solutions help them to heat, cool, separate and transport products in industries that produce food and beverages, chemicals and petrochemicals, pharmaceuticals, starch, sugar and ethanol.
Alfa Laval’s products are also used in power plants, aboard ships, in the mechanical engineering industry, in the mining industry and for wastewater treatment, as well as for comfort climate and refrigeration applications.
Alfa Laval’s worldwide organization works closely with customers in nearly 100 countries to help them stay ahead in the global arena.

Alfa Laval is listed on the Nordic Exchange, Nordic Large Cap, and, in 2005, posted annual sales of about SEK 16.5 billion (approx. 1.8 billion euros). The company has some 10,000 employees.

www.alfalaval.com


For more information please contact:
Peter Torstensson
Vice President, Communications
Alfa Laval
Tel: + 46 46 36 72 31
Mobile: +46 46 709 33 72 31

Mikael Sjöblom
Investor Relations
Alfa Laval
Tel: +46 46 36 74 82