Sandvik intends to acquire the Australian company SDS Corporation

Sandvik is offering AUD 106 M, corresponding to SEK 594 M, for the acquisition of the Australian company SDS Corporation Ltd, which is world leading in the design and manufacture of drilling equipment for mineral exploration. Among other conditions, the acquisition requires approval from shareholders representing at least 90% of the shares. The offer is being made through Sandvik’s wholly owned Australian subsidiary Sandvik Mining and Construction Australia Pty Ltd and corresponds to AUD 1.14 (SEK 6.38 at an exchange rate of SEK 5.60 per 1 AUD) per share in SDS, representing a premium of approximately 32% per share compare to average weighted share price the previous three months. The Board of Directors of SDS has unanimously recommended the shareholders to accept the offer. SDS had sales of SEK 650 M in fiscal year 2005 and report sales of SEK 400 M during the first half of the 2006 fiscal year. The company has approximately 500 employees. “The acquisition is in line with the Sandvik Group’s long-term strategy of continued profitable growth. SDS is a stable company with a strong market position and through the acquisition we intend to continue expansion in Australia as well as globally,” says Lars Josefsson, President of the Sandvik Mining and Construction business area. “SDS’s strength within exploration complements Sandvik’s current operations, while at the same time the business opportunities for SDS increase through gaining access to Sandvik’s global resources.” Sandviken, 7 April 2006 Sandvik AB; (publ)