Annual General Meeting in ASSA ABLOY AB (publ) - The board proposes global incentive program

"ASSA ABLOY seeks to attain an as wide spread participation as possible among its employees and management. We firmly believe that a participation creates motivation and strengthens the feeling of belonging, increases the interest in ASSA ABLOY and its operations. It also gives the employees an opportunity to benefit from the development of the Group. The earlier incentive programs have in a striking way created a basis for a unanimous view on the importance of the continuous development of profitability and common goals of ASSA ABLOY", says Chairman Georg Ehrnrooth.
 
The new incentive program, Incentive 2004, has been prepared to ensure participation for the new employees in the Group since 2001. Incentive 2004, which in all material respects will be structured in accordance with the program of 2001, will be open to approximately 22,000 of the Group's employees in approximately 15 countries. Pursuant to the program, Group employees will be offered the opportunity to acquire shares at market price in a company especially established for the intended purpose, which company shall subscribe for convertible bonds issued by ASSA ABLOY. It is proposed that the convertible bonds will be issued at a nominal value of up to EUR 100 million with a maturity of five years.
 
The dilution will depend on the ASSA ABLOY share price, which will be established during a measure period of five banking days prior to the date of subscription and payment for the convertible bonds, and the applicable exchange rate (SEK/EUR) but is expected to amount to approximately 2 per cent of the share capital and 1.5 per cent of the total number of votes. The special purpose company will finance its subscription for the convertible bonds by debt financing corresponding to 90 per cent of the nominal value of the convertible bonds and the remainder with capital contributions from the employees' subscription for shares.
 
The full notice to the shareholders' meeting can be downloaded from the attached PDF-file.

Further information can be obtained from <br> <br> Bo Dankis, President and CEO, tel: +468 506 485 42 <br> Göran Jansson, Deputy CEO and CFO, tel: +46 8 506 485 72 <br> <br> ASSA ABLOY AB (publ) <br> Box 70340, SE 107 23 Stockholm <br> Tel: +46 8 506 485 00, Fax: + 46 8 506 485 85 <br> www.assaabloy.com <br> <br> The ASSA ABLOY Group is the world's leading manufacturer and supplier of locking solutions <br> dedicated to satisfying end-user needs for security, safety and convenience. The Group has about 30,000 employees and annual sales of approximately EUR 3 billion.

About Us

ASSA ABLOY is the global leader in door opening solutions and offers mecahnical and electromechanical locks, digital door locks, security doors, entrance automation, hotel security and secure identity solutions, primarily in identity and access management, as well as a number of other related products and services. Since its formation in 1994, ASSA ABLOY has grown from a regional company into an international Group with some 47,500 employees operating in more than 70 countries and sales of SEK 76 billion.