Atle and Balticgruppen to form a billion-kronor world-leading group heading for a stock market flotation

Atle and Balticgruppen to form a billion-kronor world-leading group heading for a stock market flotation * Atle-owned Trima and Ålö, a Balticgruppen company, are to form a group, with the intention of effecting a stock market flotation * Together, Trima and Ålö are easily the world's biggest players in front- end loaders for tractors- hence sizeable economies of scale are expected * The new group's year-2000 sales are estimated at some SEK 1.1 bn, with earnings of approximately SEK 130 m * Atle's ownership holding is 20% of the capital and votes. * .with a positive earnings effect as early as 2000. Combined, Trima and Ålö will form the world's biggest corporation within front-end loaders with tooling and accessory ranges for tractors, mainly in the agriculture sector. The global market consumes an annual total of some 140,000 front-end loaders, of which the new group will manufacture over 25,000. Significant synergies through avenues including economies of scale in production will result from the merger. Moreover, the new group will increase exports to new markets, while integrated initiatives on existing markets are intended to increase current market shares. The group will continue to market products under the Ålö and Trima brands. In 1999, Ålö registered sales of SEK 680 m, with earnings after financial items of SEK 75 m. For the same period, Trima posted earnings of SEK 12 m on sales of SEK 261 m. Atle, which until now owns 100% of Trima, will retain 20% of the capital and votes in the new group, with Balticgruppen, former 100% owner of Ålö, holding the remainder. Olle Pehrsson, Ålö's present Chief Executive, will be Chief Executive of the new group. ATLE AB (Publ) P.O. BOX 7308 S-103 90 STOCKHOLM SWEDEN VISITING ADDRESS: REGERINGSGATAN 48 TELEPHONE +46 (0)8 506 10100 TELEFAX +46 (0)8 506 10110 CORPORATE IDENTITY NO.: 556454-879 2(2) Bo Ulván, Atle Industry's Chief Executive reported that "the fragmented front-end loader sector, with its plethora of small players, is now in restructuring. This deal makes Trima, the market's fourth-biggest player, and Ålö, the No. 2, the only truly internationalised corporation. The merger implies the creation of a billion-kronor group with significant co- ordination effects and worldwide sales that will be ready for a stock market flotation in a few years." Stockholm, 23 May 2000 Atle AB (publ) For further information, please contact: Bo Ulván, Chief Executive of Atle Industri, tel +46 (0)8 678 1610 Atle- key facts Atle is a growth company that intends to be 2-3 times its current size in 5 years' time. Atle is a private equity player, investing in unlisted companies, participating actively in their development, and after a few years, finding them a suitable new home- through an exit- thereby realising value growth. Since 1993, the Atle group's earnings have risen progressively, from SEK 373 m to SEK 1,025 m in 1999. Atle maintains a high transaction tempo, acquiring over 20 enterprises across all sectors each year. Since inception in 1992, Atle has invested in approximately 200 businesses and exited from over 100. Its annual return from these exits has exceeded 50%. 43 of its holdings (26% of invested capital) are in IT and other technology enterprises. Atle is quoted on the Stockholm Stock Exchange's A-list and has just over 16,000 shareholders. Balticgruppen- key facts Balticgruppen is an ownership vehicle that invests in and develops enterprises, primarily in the Umeå region of northern Sweden. In 1999, the group's sales were SEK 767 m and its earnings were SEK 90 m. Balticgruppen's owners are Krister Olsson (53%) and the Åström and Byström families (30% and 17% respectively). ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/05/23/20000522BIT00670/bit0001.doc http://www.bit.se/bitonline/2000/05/23/20000522BIT00670/bit0002.pdf