KLIPPAN’S COMPOSITION HAS COME INTO FORCE AND THE NEW SHARE ISSUE IS CARRIED OUT

KLIPPAN AB’s and KLIPPAN Mölndal AB’s proposed compositions were ratified on 3 and 4 November respectively through decisions by the Helsingborg and Mölndal District Courts respectively. These decisions have now come into force. The previously decided upon but delayed new share issue for some MSEK 200 has become fully guaranteed during the reconstruction. However, one condition for the guarantee was the ratification of the composition by the District Courts and the decisions coming into force, as has occurred as per above. This therefore means that KLIPPAN during December 2005 will be able to carry out the previously delayed, and now fully guaranteed new share issue. As the reconstruction has thus provided preconditions for creating a strong and profitable KLIPPAN, the reconstruction process will be completed as at 2 December 2005. From that date, KLIPPAN will revert to normal conditions, entailing that all special regulations and limitation that have applied during the reconstruction will cease. KLIPPAN AB Thomas Billing Mananging Director For further information, please contact Thomas Billing, MD, on tel +46 (0)435-291 01 or Guy Lofalk, Attorney, on tel +46 (0)8-22 09 00.