Allocation of SPP surplus funds to Cardo group companies

According to information received, SPP has allocated SEK 73.6 million of its surplus funds to the Cardo group's companies.

According to information from SPP, the implementation of the decision is conditional upon it not contravening regulations relating to competition legislation.

In view of the uncertainty relating to their utilization and in the light of the Swedish Financial Accounting Standards Council's recommendation regarding computation of the present value of the funds allocated, they will probably be reported at an amount lower than that specified above.

Malmö, Sweden, October 27 1999
Cardo AB (publ)