Bure-owned Simonsen acquires Textilia Tvätt och Textilservice from Stockholm County Council and signs five-year contract

Bure-owned Simonsen acquires Textilia Tvätt och Textilservice from Stockholm County Council and signs five-year contract Simonsen Sverige AB, which forms part of Bure Health Care, expands its product supply in Swedish health care by SEK 75M on an annual basis through acquisition of Textilia Tvätt och Textilservice AB from Stockholm County Council. At the same time, a five-year supply contract has been signed with an opportunity for a two year extension. With the acquisition, Simonsen will have sales of approximately SEK 650M on an annual basis and have more than 700 employees. The acquisition is a step in Simonsen's strategic expansion of the full- service concept, One-Stop®, through which the customers get delivery of a number of supplies as well as textiles/laundry from a single supplier. The concept includes logistics, electronic trading and a number of services with the objective of lowering customers' costs and increase their opportunities to focus on their main operation. "We lead the development towards an entirely new concept for the supply of consumables," says Ulf Jungberg, President of Simonsen. "The acquisition of Textilia Tvätt och Textilservice forms part of a strategic establishment in the Stockholm region and constitutes an opportunity for Simonsen to reach new customer groups." Simonsen's customers are found in health care as well as hotels and industry. Operations are based on long-term agreements with the customers in which the supply of consumables is contracted out. The acquisition will take place at 1 January 1999 and will have a positive effect on Simonsen's earnings from that year. Following the acquisition, sales by Simonsen will amount to approximately SEK 650M. The number of employees is approximately 700. Bure Health Care forms part of Investment AB Bure and carries out operations in health care, geriatric care, occupational care, diagnostics and materials supply. Bure Health Care has an annual sales rate of more than SEK 2.3 billion and around 3,000 staff. Gothenburg, 21 October 1998 Simonsen Sverige AB (priv) For further information please contact: Saila Horttanainen, Head of Information of Bure Health Care +46 31-335 76 72 Ulf Simonsen, President of Simonsen Sverige AB +45 43 55 55 07 As active owner and investor, Bure will contribute capital and expertise with the objective of creating growth in value for the shareholders. Operations consist of Bure Health Care, Bure IT/InfoMedia and Bure Investments.