Atle acquires remaining 40% in DIAB

Atle Mergers & Acquisitions acquires remaining 40 per cent in the growth company, Divinycell Polimex AB * The acquisition brings about an annual positive effect on earnings of SEK 15M * Divinycell Polimex, which after the acquisition is booked at SEK 250M, is expected to grow by 20 per cent during 1999, report sales of SEK 560M and generate earnings before taxes of SEK 70M. Divinycell Polimex AB (DIAB) has a world-leading position in the advanced sandwich materials segment - a strong lightweight material which, among other things, is used in high-speed trains, spaceships, advanced vessels and wind power station blades. The world market amounts to approximately SEK 1,000M and is growing by 10 per cent per annum. DIAB has an increasing share of more than 50 per cent of this growth market. DIAB's sales are fairly evenly distributed over the world. Manufacturing takes place at three plants in Sweden, Italy and the USA, whereas marketing companies are located in some ten countries. DIAB recently made a decision to invest SEK 120M in expanding the manufacturing capacity at all three plants in order to meet increasing demand. The unique technology required in the manufacturing process and DIAB's strong market position means that it is difficult for new operators to establish operations. DIAB is expected to increase its sales by nearly 20 per cent to SEK 560M in the current year with earnings before taxes of approximately SEK 70M. Following the acquisition of the remaining 40 per cent of the shares, the book value of the DIAB shares in the Atle Group amounts to SEK 250M. The immediate additional annual effect on earnings in the Group of the acquisition of 40 per cent of the shares amounts to approximately SEK 15M. DIAB has existed in the Atle Group since 1993. Over the years, a number of structural measures have been implemented which has taken the company from sales of SEK 178M and earnings before taxes of SEK 15M to current levels. The largest structural change was implemented in 1994 when the merger with the Italian company, Polimex, was carried out. Thereafter, gradual integration and market expansion have taken place. ATLE AB (Publ) P.O. BOX 7308 S-103 90 STOCKHOLM SWEDEN VISITORS: REGERINGSGATAN 48 TELEPHONE +46-8-506 101 00 TELEFAX +46-8-506 101 10 REGISTERED OFFICE: 556454-8799 2 (2) Gustav Bard, Head of Business Sector Atle Mergers & Acquisitions: "The fast-growing DIAB is one of many exciting companies in Atle M&A's portfolio. Through the acquisition, which was made on very interesting terms, Atle's opportunities for contributing to the rapid growth of DIAB that we see ahead over the next few years are increasing." Stockholm, 16 August 1999 Atle AB (publ) For further information, please contact: Bo Ljungberg, President of Divinycell Polimex AB, tel +46 430-163 46. Gustav Bard, President of Atle Mergers & Acquisitions, tel + 46 8-506 101 00 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/08/16/19990816BIT00080/bit0001.doc http://www.bit.se/bitonline/1999/08/16/19990816BIT00080/bit0002.pdf