Proposal to the A G M of AB Ångpanneföreningen to issue convertiibles

Proposal to the Annual General Meeting of AB Ångpanneföreningen to issue convertibles for which employees may subscribe The Board of AB Ångpanneföreningen (publ) has resolved to present a proposal to the company's shareholders at the Annual General Meeting on 11 May 2000 which departs from the shareholders' customary preferential rights by issuing a convertible bond loan for which employees within the Group in Sweden may subscribe. The main conditions proposed for the issue are as follows: *The loan will amount to a ceiling of SEK 175 million and run from 6 July 2000, up to and including 20 June 2005. It may be converted to B shares with effect from 21 January 2004, up to and including 20 May 2005. The loan will attract an annual interest of 12 month's STIBOR less 2.70 percentage points. *Subscriptions may be made during the period 17-30 May 2000. The settlement day is 6 July 2000. *Each employee has Proposal to the Annual General Meeting of AB Ångpanneföreningen to issue convertibles for which employees may subscribe the right to subscribe up to a ceiling of SEK 1,000,000. At current market conditions, all employees are guaranteed an option to subscribe for approximately SEK 50,000. *The conversion rate is set at approximately [118] % of the average market value for the ÅF Group share during the period 17-23 May 2000. The dilution effect is estimated not to exceed a maximum of 10 percent of share capital and approximately 6.5 percent of the votes. AB ÅNGPANNEFÖRENINGEN Corporate Information For further information Gunnar Grönkvist, Managing Director and CEO Kaj Sandart, Director, Corporate Information, ÅF Group, +46 (0)8-657 10 00 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/04/10/20000410BIT00840/bit0001.doc http://www.bit.se/bitonline/2000/04/10/20000410BIT00840/bit0002.pdf