Atle increases its holding in Kronans Droghandel to 58 per cent

Atle increases its holding in Kronans Droghandel to 58 per cent Atle, which has owned approximately 33 per cent of Kronans Droghandel since the beginning of 1998, has now acquired an additional 25 per cent of the shares. The vendors are Roche AB and Novartis AB. KD is one of two distributors within the Swedish pharmaceutical and health care market in which all products are handled by only one distributor, the so-called "single channel system". KD, which has so far been the minor player in this market, has had a steadily rising market share over the past ten years. KD will soon be in a situation in which it shares the market with Tamro AB (formerly ADA). In 1998, the KD Group reported sales of SEK 8.9 billion. KD also has significant operations in Norway via its subsidiary, Holtung A/S, and recently started operations in Finland. Both Roche and Novartis remain as suppliers to KD. KD is now owned by Atle (58.3%), Merck, Sharp & Dohme (12.5%), Pfizer (12.5%), Orion Pharma (10.6%) and other companies (6.1%). "By increasing our shareholding in KD, we are vigorously demonstrating our confidence in KD's future," says Gustav Bard, President of Atle M&A. "By being the majority owner, we will no get an opportunity to control the company even more efficiently towards increased shareholder value". "KD is now in a situation to act in its own interest in the rapidly- changing European distribution sector. It will benefit all interested parties - owners, employees, suppliers and customers," says S Manth and S Slätis, President of Roche AB and Novartis AB, respectively. Facts about Atle Atle is involved with private equity investments. This means that the Company invests in unlisted companies and works actively with their development. After a few years' work, Atle, via a stockmarket listing or merger, will find new suitable domiciles for the companies and thus realise the growth in value. Since its start in 1992, Atle has invested in approximately 200 companies and exited more than 100. The yield on these exits has exceeded 50 per cent per annum. The business-pace is high: some 20 companies per annum are acquired. Since 1993, the Group's profit has risen steadily from SEK 373M to SEK 953M in 1998. Atle, which is quoted on the A list of the OM Stockholm Exchange, has approximately 15,000 shareholders. Stockholm, 14 December 1999 Atle AB (Publ) For further information, please contact: Gustav Bard, President of Atle Mergers & Acquisitions, tel. +46 506 101 00. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/12/14/19991214BIT00620/bit0001.doc http://www.bit.se/bitonline/1999/12/14/19991214BIT00620/bit0002.pdf