Structural deal in the forest machinery sector € Hemek acquires Atle-owned V-Kran

Structural deal in the forest machinery sector - Hemek acquires Atle-owned V- Kran The Hemek Group is acquiring 100 per cent of the forest crane manufacturer, V- Kran, in Vaggeryd. The vendor is the listed company, Atle, which has owned V- Kran since 1995. Atle will remain as a stakeholder with an ownership of 12 per cent in the new forest machinery group which will be formed in connection with the acquisition. Hemek AB, which has a plant in Hede, Härjedalen, and offices in Bollnäs and Stockholm, manufactures forwarders, harvesters and harvesting apparatus with accessories. Hemek's operations have expanded very rapidly in recent years. 1998 sales amounted to SEK 105M with high profitability. A large proportion of sales are made abroad, both in Europe and in North and South America. V-Kran, which forms part of Atle Karolin Verkstadsindustri and for several years has reported a negative result, had sales of SEK 80M in 1998. V-Kran mainly manufactures large forest cranes with accessories. During 1997-98, the company has undergone extensive restructuring and modernisation with the objective of creating sustained profitability. Hemek's acquisition of V-Kran creates considerable opportunities for collaboration between the companies with regard to production purchasing, marketing/sales as well as a joint management. The company will be profitable right from the start. In addition, increased resources within production, product development and marketing will provide a sound foundation for profitable and rapid growth. Stockholm, 12 February 1999 Atle AB (publ) For further information, please contact: Lennart Ericsson, Executive Vice-President of Atle Karolin Verkstadsindustri, tel +46 652-371 00, Christer Törner, President of V-Kran, tel +46 393-369 00, Erik Berglund, President of Hemek, tel +46 622 60 58 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 Fact sheet Atle AB Atle is an industrial and trading group 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 a sales rate of approximately SEK 9 billion and a total of 8,000 employees. Since the stockmarket introduction, the number of shareholders has increased to more than 13,000. Operations are carried out in the six business sectors: Atle Karolin Verkstadsindustri, Atle Tjänste & Handel, Atle Miljöteknik, Atle Informationsteknogi, Atle Mergers & Acquisitions and Atle Företagskapital. Atle Karolin Verkstadsindustri AB Atle Karolin Verkstadsindustri - a business sector within Atle AB - includes some10 companies which concentrate on the materials handling segment. The business sector has total invoicing of approximately SEK 3,100M, of which 75 per cent outside Sweden. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/12/19990212BIT00220/bit0001.doc http://www.bit.se/bitonline/1999/02/12/19990212BIT00220/bit0002.pdf