Atle forms the third largest bed manufacturer in Europe

Atle - together with Nordic Capital and others - forms the third largest bed manufacturer in Europe *Through its ownership in both Hilding Anders and Apax, Atle - together with the other stakeholders: Nordic Capital, the Adolfsson, Hultman and Conradsson families, and Skandia Investment - forms the third largest bed manufacturer in Europe. *The annual sales rate amounts to just under SEK 1 billion, earnings before financial income and expenses, and goodwill to approximately SEK 110M, and annual production to 700,000 beds. *The new Group will be named Hilding Anders AB *Atle becomes the largest owner with 36 per cent *The Group is expected to be listed on the stockmarket within two years *The transaction is subject to the approval of the Competition Authority involved The bed manufacturer, Hilding Anders, will merge with Apax and form the third largest bed manufacturer in Europe with an annual sales rate of just under SEK 1 billion, earnings before financial income and expenses, and goodwill of approximately SEK 110M, and more than 500 employees. The new Group will be named Hilding Anders and have operations in Sweden, Finland, Denmark, Norway, Estonia and Lithuania. Bengt Adolfsson will be Managing Director and Apax's Managing Director; Anders Hultman, will be Chairman. The head office will be located in Hästveda in Skåne province. The new Hilding Anders will continue to have large sales of Private Labels to, among others, IKEA, MIO and Europa Möbler. In addition, the Group will manufacture and market beds with an interior sprung mattress, quilts, pillows, and other bed mattresses under its own brands: Ekens, Hilding, Tibro Bädden, ATLE AB (Publ) P.O. BOX 7308 S-103 90 STOCKHOLM SWEDEN VISITORS: REGERINGSGATAN 48 TELEPHONE +46-8-24 62 10 TELEFAX +46-8-21 10 21 REGISTERED OFFICE: 556454-8799 Stjärnbädden and Scandi Sleep. The brands are already well-established in the retail segment with complementary positions in various segments on the bed markets in Sweden, Denmark, Finland and Norway. Owners in the new Group will be Atle, 35.6 per cent, Bengt and Ann-Charlotte Adolfsson, 18.2 per cent, Anders Hultman, 7.6 per cent, Yngve Conradsson, 7.6%, Skandia Investment, 5.6 per cent, and Bure, 4:e AP Fonden and Handelsbanken Liv via Nordic Capital, together own 25 per cent. Lars Gårdö, Managing Director of Atle: "It is very pleasing that we have so rapidly succeeded in implementing this transaction. When Atle acquired a 60 per cent holding in Hilding Anders in January this year, we stated our plans to create a group which will have the strength required for a continued expansion in Europe. Soon thereafter, we participated in the first acquisition - of the Finnish bed manufacturer, Unituli. Through the merger with an equally large and strong Apax, in which we have a 15 per cent holding, we are now creating a billion kronor group with significant synergy effects which within two years will be ready for a stockmarket introduction." Bengt Adolfsson, Managing Director of Hilding Anders: "The first target stage for the new Group is to have sales within two years which permanently exceed SEK 1 billion, with a profitability of 8-12 per cent. Within five years, we will be the largest manufacturer in Northern Europe of beds with an interior sprung mattress and one of the largest producers in the world. In order to succeed in that process, continued structural transactions, innovations and increased efficiency will be required. This transaction should be seen in the light of that strategy. In the new Group, we will also continue to prioritise a high rate of innovation. A further step in that direction is a recently carried-out acquisition of the development company, Newtec. The transaction is strategic as the former Hilding Anders has developed its own production lines together with Newtec in recent years. The technology has led to the fact that Hilding Anders has a very high productivity." Stockholm, 21 October 1998 Atle AB (publ) For further information, please contact: Lars Gårdö, Managing Director of Atle AB, tel +46 8-24 62 10 Bengt Adolfsson, Managing Director of Hilding Anders AB, tel +46 451-304 05 APPENDIX (The new) Hilding Anders AB Hilding Anders and Apax are two companies with strong roots on the Nordic furniture market. Both companies manufacture both Private Labels and own brands and have a similar customer structure. In January 1998, Atle acquired 60 per cent of the "old" Hilding Anders from Bengt and Ann-Charlotte Adolfsson who remained the owners of 40 per cent of the company. Soon thereafter, Hilding Anders acquired the Finnish company, Unituli. Since the 93/94 split financial year, Hilding Anders has quadrupled its sales to SEK 370M and now has 225 employees. In 1997, IKEA elected the company "Supplier of the Year". In addition to sales of Private Labels, Hilding Anders manufactures and markets beds with an interior sprung mattress, quilts, pillows, and other bed mattresses under its own brands: Ekens and Hilding. The company sells approximately 300,000 beds per annum and has manufacturing units in Hästveda, Tollarp, Falkenberg in Sweden as well as in Finland and Estonia. On 2 October 1997, Nordic Capital acquired a 60 per cent holding in Apax. Through its stakeholding in Nordic Capital, the transaction gave Atle an indirect ownership of 15 per cent in Apax. The Hultman and Conradsson families remained as owners of 30 per cent of the company, and Skandia Investment with 10 per cent. Apax has sales of SEK 470M and 300 employees. Apax sells 400,000 beds per annum and has manufacturing units in Rydaholm and Tibro in Sweden, and in Denmark, Finland and Lithuania. In addition to Private Labels, Apax sells its own brands: Tibro Bädden, Scapa and Scandi Sleep. Atle AB Atle is an investment company which invests in and develops small and medium- size companies which are generally unlisted. Atle's core expertise is business development which includes the ability to find interesting companies, create acquisition situations and through active and responsible ownership to develop and after a period of time to find new suitable habitats for owned companies. Atle, which was introduced on the stockmarket in 1993, has sales of approximately SEK 9 billion and a total of 7,000 employees. Since the stockmarket introduction, the number of shareholders has increased to more than 11,000. Operations are carried out in the seven business sectors: Atle Karolin Verkstadsindustri, Atle Tjänste & Handel, Atle Miljöteknik, Atle Informationsteknologi, Atle Livsmedelsprodukter, Atle Mergers & Acquisitions and Atle Development. APPENDIX Nordic Capital AB Nordic Capital is a leading venture capital company in the Nordic countries. As an active owner, Nordic Capital takes part in developing, restructuring and contributing value added to its portfolio companies. Since its start in 1990, Nordic Capital has carried out 21 acquisitions with total sales of SEK 24 billion. Four of these companies - Intentia, Meda, BT Industries and Karlshamns - have been introduced on the stockmarket. Nordic Capital Fond III, which was established in spring 1998, amounts to SEK 3.2 billion. Among the investors are to be found Atle, Handelsbanken Liv, Sjätte AP-fonden, Bure, Pohjola, Tryg-Baltica, Norsk Hydro as well as a number of institutional investors in the USA and Great Britain. ------------------------------------------------------------ http://www.bit.se/bitonline/1998/10/21/19981021BIT00130/engelsk.doc http://www.bit.se/bitonline/1998/10/21/19981021BIT00130/engelsk.pdf