BE GROUP CENTRALISES PURCHASING AND PRODUCT SUPPLY

PRESS RELEASE
25 September 2007

Leading steel and metals trading and service company BE Group, will centralise its product support organisation in a corporate unit at the end of the year. The change is aimed at improving the match between BE Group and increasingly large international suppliers.

The most important steel suppliers currently work globally in very large organisations to maximize synergy effects in production, logistics and marketing. In response, BE Group must coordinate its actions towards suppliers, concentrate larger purchasing volumes in all negotiations and implement efficient supplier development across national borders.

President and CEO of BE Group Håkan Jeppsson says, “We are improving our position in supplier negotiations and strengthening BE Group’s long-term capacity to offer competitive prices to our customers. In parallel, we are streamlining product flows and capital management.”

As of 1 January 2008, the purchasing organisations at BE Group subsidiaries will be merged into a centralised product supply function, managed from Malmö by Per Horstmann, vice president, purchasing and production for BE Group. The function’s responsibilities will include contract negotiations, developing BE Group’s product range and acting as a corporate centre of technical and production excellence.

Jeppson concludes, “The change is entirely consistent with our strategy to enhance and consolidate operations. Combined with our new operations in China, this organisation makes us a stronger partner for our customers in an increasingly international market.”

If you have any questions, please contact:

Håkan Jeppsson, President and Chief Executive Officer, tel. +46 (0)705 50 15 17,
e-mail hakan.jeppsson@begroup.com


The information in this press release is such that BE Group could be required to make public under the Swedish Securities Exchange and Clearing Operations Act and/or the Swedish Financial Instruments Trading Act.