Annual General Meeting 2006

In his address to the Annual General Meeting of Seco Tools AB on 2 May, Kai Wärn, President and CEO, commented on significant events during 2005 and business trends during the first quarter of 2006. To start with he commented that the sales and result during 2005 again were the highest ever for the company in its history. Profit margins and return on capital reached high levels. Market conditions during 2005 were characterized by growth in all markets. Central- and Eastern Europe and Asia achieved the highest growth, but also Western Europe and North America showed high growth. Market shares have been retained or increased in all markets. During the first quarter of 2006 the growth rate increased again in Western Europe and on the other market regions the growth continued at the same rate as previously. The only exception was South America where the slowdown during the second half of 2005 continued into 2006. A presentation followed of new products and products sold younger than five years. The President continued with an overview of the two main programs Positioning for Growth and Operational Excellence. He stressed the importance of working towards customer values and customer intimacy as well as the on-going investments for future capabilities. A presentation was also made on newly established subsidiaries and sales offices for increased market coverage in Eastern Europe and Asia. He also made a short presentation of the Code of Conduct, the policy for equal opportunities as well as the environmental policy. In closing, Kai Wärn presented the results of the first quarter 2005, stating that the quarterly sales were the highest ever and that he didn’t see any immediate downturn on the market. Jonas Jordberg, Senior Vice President, Group Technology, described some new products used in milling, drilling and turning applications. The Meeting approved the Board’s proposal of an ordinary dividend for 2005 of SEK 17.00 per share and an extra dividend of SEK 10.00 per share, totalling SEK 786 M (SEK 25.00 per share in 2004, totalling SEK 727 M). May 5 was determined as the record date for entitlement to dividends, which means that the dividend is expected to be paid out on 10 May 2006. In connection with the presentation of its suggestions the Nominating Committee described the procedures of their work. The Meeting re-elected Gunnar Björklund, Stefan Erneholm, Jan-Erik Forsgren, Carina Malmgren Heander, Anders Ilstam, Carl-Erik Ridderstråle and Kai Wärn as directors. Annika Bäremo was elected as new director. Annika Bäremo, LL.B, holds a position as company lawyer at Sandvik AB. The Meeting re-elected Gunnar Björklund as Chairman of the Board. Fees paid to Board members were established at SEK 1,600,000 of which SEK 400,000 will be paid to the Chairman and SEK 200,000 for each of the other Board members who are not employed by the company. The fees to the members of the Audit Committee were established at SEK 175,000 in total. Fees to the company’s auditors will continue to be paid under current account. The Meeting approved the Board’s suggested change of the Articles of Association which amongst other things implies a 5-for-1 split of the share. Last day for trading of the old share is expected to occur in early June this year. The Board’s proposed principles for remuneration and other terms of employment for the Group Executive Management were approved. The Meeting approved the motion that the Nominating Committee through the close of the next Annual General Meeting shall consist of the Chairman of the Board and representatives of the four major shareholders, for which representatives must not be Board members. The composition of the Committee ahead of the election of the Board in 2007 is to be made public as soon as it is appointed, but no later than six months before the Annual General Meeting. No remuneration will be paid to Committee members. The Nominating Committee will propose Chairman for the Annual General Meeting, number of Board members, fees to Board members and auditors as well as election of Board members and Chairman of the Board. At the statutory meeting of the Board of Directors after the Annual General Meeting, Gunnar Björklund, Carina Malmgren Heander and Carl-Erik Ridderstråle were appointed to the Remuneration Committee. Gunnar Björklund, Annika Bäremo and Stefan Erneholm were appointed to the Audit Committee. Tomas Eliasson, Chief Financial Officer at Seco Tools and not a Board member, was appointed Secretary of the Board. Fagersta, Sweden, 2 May 2006 SECO TOOLS AB; (publ) BOARD OF DIRECTORS For additional information, contact Kai Wärn, President and CEO (Tel: +46 223-401 10) or Tomas Eliasson, CFO (Tel: +46 223-401 20). E-mail can be sent to: investor.relations@secotools.com Previously published information can be found under "Investor Relations" on the Seco Tools’ website (www.secotools.com). Seco Tools AB’s corporate registration number is 556071-1060 and the address is Seco Tools AB, SE-737 82 Fagersta, Sweden. The telephone number to the Group’s head office is +46 223-400 00.