Distribution of Meto

PRESS RELEASE FROM ESSELTE AB March 10, 1999 Distribution of Meto Esselte's Board of Directors has decided to propose to the Annual General Meeting that all shares in the subsidiary Meto be distributed to Esselte's shareholders, and to apply for a separate listing of the Meto share on the Stockholm Stock Exchange in June. Meto is a leading worldwide provider of intelligent labeling solutions to improve customer sales and processes. The company supplies distribution companies and the retail trade with labels featuring add-on functions, such as identification, anti-theft protection, sales and price information, and certification of origin. By spinning off Meto from Esselte, Meto will have increased possibilities to develop independently and capitalize on rapidly growing markets for integrated labels with a large information content, primarily in the bar coding and anti- theft areas. Meto is a leading player in these areas and will actively participate in the future consolidation of the industry. After the spin-off of Meto, Esselte will be a specalized office products company with a leading position in the global market. Some key figures for Meto 1998 1997 Sales, SEK 3,142 2,956 m. Operating 226 177 income, SEK m. Operating 7.2% 6.0% margin Return on 24% 18% capital employed Meto has 2,400 employees in 24 countries. Of sales, 74 percent are generated in Europe, with Germany being the largest market, 16 percent in North America and 7 percent in Asia. Meto is headquartered in Heppenheim, Germany, outside Frankfurt. Meto's products Barcoding systems, including printers and intelligent labels with a high information content, is the largest product area. In 1998, bar code labeling accounted for 35 percent of sales and increased 9 percent. Electronic article surveillance (anti-theft systems), based on integrated electromagnetic or radio frequency technology, accounted for 22 percent of sales and grew 16 percent in 1998. Systems consist of miniaturized detection elements - labels, alarm tags or other types of alarm elements - as well as detection gates and activating/deactivating equipment for stores. Hand-held labeling tools and labels for price marking and merchandising in stores generated 27 percent of sales. Meto is a market leader in Europe and has a strong position in the United States. The hand-held labeling product area decreased 4 percent in 1998, since bar coding is gradually replacing manual price-marking techniques. Retail merchandising accounted for 14 percent of sales and achieved growth of 2 percent in 1998. For further information An information memorandum will be distributed in advance of the Annual General Meeting on April 21, 1999. For further information please contact Bengt Wikander, Senior Vice President, Corporate Communications, at Esselte AB. Phone +46 8 545 21 900 (switchboard), +46 8 545 21 904 (direct line) or +46 708 92 24 31 (mobile phone). ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/03/10/19990310BIT00280/bit0001.doc http://www.bit.se/bitonline/1999/03/10/19990310BIT00280/bit0002.pdf