Cardo Annual General Meeting

At Cardo AB's annual general meeting today, the following members of the board were re-elected: Tuve Johannesson, Fredrik Lundberg, Lennart Nilsson, Bengt Pettersson, Anders Rydin, Melker Schörling and Kjell Svensson.

At the statutory meeting of the board after the annual general meeting, Fredrik Lundberg was appointed chairman and Lennart Nilsson vice chairman.

Reidar Peters and Christer Ljungsten, authorized public accountants, were reappointed as auditors. Mats Fredricson and Anders Scherman, authorized public accountants, were reappointed as deputy auditors.

Amendments to the articles of association were resolved pursuant to the Swedish Companies Act as amended on January 1 1999.

Dividend
In accordance with the proposal put forward by the board of directors and president, the meeting declared a dividend of SEK 5.00 per share. Thursday, April 22 1999 was established as the day of record for dividend, and payment is expected to be distributed by Värdepapperscentralen VPC AB (Swedish Securities Register Center) starting Thursday, April 29 1999.

The president's address
In the course of his speech at the annual general meeting, Cardo's president and CEO Kjell Svensson touched on Cardo's future development and expansion:

"During the four years Cardo has been a listed company, we have achieved our aim of 10-15 percent annual growth in terms of volume. However, growth has been through acquisition to an increasing extent. We are going to break this trend, and will this year focus more sharply on organic growth, which I want to be roughly half of total growth."

"We are going to penetrate new geographical markets, mainly in eastern Europe, and be more aggressive when it comes to marketing in countries where we have a low market share. We are going to further intensify our investment in the attractive aftermarket. This is where I see the big potential for Cardo. I want to see Cardo develop into a company with a strong service orientation."

"The Rail business area is where I see the biggest potential for increasing the proportion of service and maintenance work. My aim is for the aftermarket to account for an ever greater part of Rail's sales in the years to come. Today, Rail's service operation corresponds to only a fraction of the existing market for service and maintenance of our rail-vehicle brake equipment."

"There is also a lot to do in pump service, and I want to see Pump as one of the major players in this area in the future. Door's investment in the aftermarket has paid off well, but there is more to be gained here. We are therefore going to further develop the service side at Door on the basis of the present concept."

"Cardo's operations have been strengthened considerably during the past year. In this respect, I principally have in mind the extensive measures at Rail, which will begin to bear fruit in the course of this year. Our investment in products and marketing for Pump, our acquisitions for Door, and our focus on organic growth - mainly through the expansion of service - will also make a positive contribution to the ongoing development of the group."

Financial information
Cardo's first quarter interim report will be published on May 3.

Malmö, Sweden, April 19 1999
Cardo AB (publ)