The board recommends

Regular dividend of SEK 8 per share and extra dividend of SEK 32 per share

The board of directors of Cardo has today resolved to submit a recommendation to the annual general meeting on April 7 2003 of a regular dividend for the financial year 2002 of SEK 8 per share and an extra dividend of SEK 32 per share.

The regular dividend requires SEK 240 million and the extra dividend SEK 960 million.

The dividend recommendation is to be viewed in the light of the sale of the Rail business area, which freed up approximately SEK 2 billion and gave a capital gain of SEK 323 million.

If the annual general meeting resolves in accordance with the recommendation of the board of directors, Cardo’s equity ratio after payment of the total dividend amount of SEK1,200 million is expected to be approximately 50 percent, which will provide continued financially good prospects of expanding the business.

Malmö, Sweden, December 5 2002

Cardo AB (publ)