Cardo signs a Preliminary Agreement regarding sale of its business area Rail

Cardo has entered into a Preliminary Agreement with Vestar Capital Partners according to which Vestar shall acquire the business area Cardo Rail from Cardo. The intention of the Parties is to enter into a definitive sale and purchase agreement as soon as contract negotiations and the due diligence have been completed.

Vestar is a leading private equity firm. Founded in 1988, Vestar has offices in Paris, Milan, New York, and Denver, and currently manages approximately US$ 4 billion of capital. The firm has substantial investment experience across a wide range of industries and a long history of investment in the railway supply sector.

Cardo Rail, which is one of the world’s largest manufacturers of brake systems and brake components for rail vehicles, has a turnover of approximately SEK 2.7 billion and has approximately 2,000 employees.

Additional information is expected to be available in the end of May/beginning of June 2002.

Malmö, Sweden, April 18 2002

Cardo AB (publ)