HÖGANÄS TO BE IN TALKS ABOUT SCM'S COPPER BUSINESS

Early 2003, Höganäs acquired SCM Metal Products, Inc., a leading producer of specialty powders. With manufacturing facilities at Johnstown, Pennsylvania and at Research Triangle Park, North Carolina, SCM has a strong market position in both iron-based products and copper-based products. In the past year, the results from both operations have been excellent.

Höganäs has determined that its long-term strategic objectives require more focus on established core businesses, such as iron and high alloy based products. Accordingly, Höganäs will begin exploratory talks with interested parties about divesting the SCM North Carolina facility and the copper-based lines of business centered there.

SCM Johnstown, including its "GLIDCOP" operations, will only be marginally affected.


Höganäs 10 February 2004


Claes Lindqvist
President and Chief Executive Officer