Nordstjernan invests in Välinge - a leadning technology development company in the flooring industry

Nordstjernan invests in Välinge - a leading technology development company in the flooring industry · Nordstjernan AB ("Nordstjernan") has reached an agreement with the Perván family to acquire an ownership interest in Välinge Holding AB 1) ("Välinge"), which is the parent company of Välinge Aluminium AB ("Välinge Aluminium"). · Välinge Aluminium is a leading technology development company in the flooring industry that has shown strong growth in recent years. · Initially, Nordstjernan will own 23 percent of Välinge, with the possibility to increase its ownership to 50 percent. · The transaction creates opportunities for Välinge to develop its successful licensing business and to increase the pace of innovation regarding new flooring systems. Välinge Holding is the parent company of Välinge Aluminium, which in 1993 developed the world's first mechanical locking system for laminate and wood flooring. Flooring with a mechanical locking system enables glue-free floor laying and in recent years has captured substantial market shares from traditional glued floors. Välinge Aluminium holds an extensive patent portfolio and the company's licensees include many leading international laminate and wood floor producers. Välinge Aluminium recently invested in an advanced development and production center in Viken, outside Helsingborg, to continue development of new flooring systems. Välinge Aluminium has shown strong earnings growth for a number of years. [REMOVED GRAPHICS] "Välinge is an exciting family company that fits well into Nordstjernan's investment strategy. We see major possibilities for the company to continue its successful licensing operations regarding mechanical locking systems and other newly developed floor products," says Tomas Billing, President of Nordstjernan. "With its new plant in Viken, the company is also ready to take the step from being a pure licensing company to also developing and producing new flooring systems in its own premises. As principal owner of one of the Nordic region's largest construction companies, NCC with sales of EUR 5 billion, Nordstjernan has great interest in and substantial knowledge about the construction industry and the flooring segment. " "Välinge holds a world-leading position in mechanical locking systems for laminate and wood flooring. We currently have some ten licensees worldwide that produce nearly 30 million square meters of flooring annually featuring our technology," says Darko Perván, founder and President of Välinge. "We succeeded with our commercialization and since the start ten years ago the company has shown highly favorable profitability. We welcome Nordstjernan as an owner. Like Välinge, Nordstjernan is a family owned company that has a long-term view of ownership. The partnership provides Välinge greater financial strength and an expanded international contact network, which can be valuable in a number of new ventures that now can be implemented faster and in a greater scope," continues Darko Perván. "Actions will include complementing our new development center with a flooring plant in Viken for newly developed specialty flooring. This new flooring will mainly be delivered to our licensees for reselling to distributors globally." The transaction will be concluded finally when certain formal conditions are fulfilled. Nordstjernan AB Välinge Holding AB Tomas Billing Darko Perván President President If any questions, contact Tomas Billing, +46 8 788 50 00, or +46 70 666 33 46. Questions related to Välinge are referred to Darko Perván, +46 42 23 87 50, or +46 730 23 78 12. Nordstjernan is a family owned investment company that through active ownership in Nordic companies shall create value growth. Investment shall be long term. Nordstjernan's largest owner in terms of capital is the Axel and Margaret Ax:son Johnson Foundation. More information about Nordstjernan is available at www.nordstjernan.se. Välinge Holding, with subsidiary Välinge Aluminium, is part of a group owned by the Perván family, The group also includes the finance and real estate company Välinge Invest AB, which is not affected by this agreement . More information about Välinge Aluminium is available at www.valingealuminium.se. Name being changed from Bronsringen AB. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/12/12/20021212BIT00600/wkr0001.doc http://www.waymaker.net/bitonline/2002/12/12/20021212BIT00600/wkr0002.pdf