Höganäs General Annual Meeting

ANNUAL GENERAL MEETING The Annual General Meeting of Höganäs AB (publ) was held on Thursday 11 May 2000 in the HB Hall in Höganäs. Pursuant to the Board's proposal the Meeting approved a dividend of SEK 4.00 per share with 16 May 2000 as the date of record. Ulf G Lindén, Claes Lindqvist, Bernt Magnusson, Hans Mivér and Per Molin (all re-elected) and Magnus Lindstam and Jacob Palmstierna (both newly elected) were appointed full members of the Board of Directors. Pursuant to the Board's proposal the Meeting resolved to authorize the Board to acquire and divest shares in the Company on one or more occasions during the period until the next Annual General Meeting. Acquisitions are to be made on the OM Stockholm Exchange at the price quoted on the date of acquisition. Acquisition of the Company's own shares is subject to the restriction that the Company's total holdings of its own shares must not at any time exceed ten percent of all the shares in the Company. Divestments of the Company's own shares may be made with or without right of first refusal for shareholders, but not via the OM Stockholm Exchange. Divestments may be made to finance corporate acquisitions or operations. The Meeting further resolved firstly that not more than 600 000 options to buy bought-back shares in the Company be issued, and secondly that not more than 600 000 shares in the Company be transferred in connection with requests, if any, to take up such options. Shares may be transferred to holders of options who apply to take up their options during the period from 1 June 2001 to 31 May 2005 inclusive. The price per share (redemption price) will be SEK 185. In his address to the Annual General Meeting the Company's President Claes Lindqvist stated that demand had been strong during the first quarter and was expected to remain at a high level during 2000. The previously issued forecast still stood, viz. that operating income was predicted to be on the same level as in the preceding year, but that pre-tax income would be substantially higher as a result of the sale of the Company's holdings of stock in the Hoeganaes Corporation. The President also informed the Meeting that the Board of Höganäs AB had resolved earlier the same day to proceed with investments amounting to about MSEK 700. The largest single investment is in the construction of a new powder manufacturing facility in the United States of America. Annealing capacity in Brazil is to be substantially enlarged. An additional modern annealing line is to be installed in Höganäs, and the additives plant there is to be expanded. A fully automated high-stacking warehouse is to be built in Japan. BOARD OF DIRECTORS The Board of Höganäs AB resolved today, by virtue of the authorization granted to the Board by the Annual General Meeting, to acquire shares in the Company. Acquisitions will be made on the OM Stockholm Exchange at the price quoted on the date of acquisition. The purpose of the buyback is to adjust the Company's capital structure and to make it possible to distribute shares under to the option scheme for senior executives adopted today by the Annual General Meeting. The buyback will also enable bought- back shares to be used to finance future acquisitions. According to the resolution adopted by the Board, not more than 3 825 000 shares are to be acquired during the period until the next Annual General Meeting. Höganäs, 11 May 2000 Claes Lindqvist President and Chief Executive Officer ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/05/11/20000511BIT01280/bit0001.doc http://www.bit.se/bitonline/2000/05/11/20000511BIT01280/bit0002.pdf