Information on current Rail negotiations

In April, Cardo entered into a preliminary agreement with Vestar Capital Partners whereby Vestar will acquire the Cardo Rail business area from Cardo. The intention of the parties is to enter into a definitive sale and purchase agreement as soon as contract negotiations and due diligence have been completed.

The current negotiations and due diligence process are expected to be completed during the month of July.

Malmö, Sweden, June 6 2002

Cardo AB (publ)