Review of the 2007 AGM

In his address to the Annual General Meeting of Seco Tools AB on 26 April 2007, Kai Wärn, President and CEO, commented on significant events of 2006 and the company’s development in the first quarter of 2007. He started by calling attention to the past year’s excellent growth in revenue, where aggressive marketing activities, a strong product offering and a robust economy were the most important drivers. Profitability and return also reached very good levels. The market situation in 2006 was characterised by strong growth in all markets, with the exception of South America. Eastern Europe and Asia delivered the sharpest improvement, but growth was also brisk in Western Europe and North America. Market shares were either maintained or increased in all markets.

All regions noted favourable development in the first quarter of 2007. Growth remained high in Western Europe, Eastern Europe and Asia, but weakened somewhat in North America. In South America, the negative trend in Brazil has reversed and the region is now showing double-digit growth.

Kai Wärn went on to describe the trend for sales of products less than five years old, which is a key performance indicator for the Group’s innovative ability. The CEO then gave an account of activities in the main programme “Positioning for Growth”, where he particularly emphasised the importance of customer benefit and closeness, a continued solution-driven orientation and investments in future talent and innovative capacity.

Kai Wärn also described the new global production structure for solid carbide and the newly established Indian unit for production of turning tool holders. The Group’s increasingly important environmental work was touched upon and Kai Wärn pointed out that Seco Tools was granted a global certification according to ISO14001 at the end of 2006.

The CEO then reported on the results for the first quarter of 2007, and stated among other things that the company has continued to perform well and set new record levels for both revenue and operating profit. He also underlined that Seco Tools sees no indication of an overall slowing in demand.

Kai Wärn ended his address by presenting the new financial goals established by the Board of Directors. In his presentation, he emphasised the increased growth ambition and that a capital structure target had been set.

Jonas Jordberg, Senior Vice President Group Technology, presented the most important product launches in the milling, turning and hole making areas to the AGM. As a particularly successful innovation with exceptionally good customer results, he highlighted the new generation of CVD-coating that has been patented under the name DurAtomic.
The AGM resolved in favour of the Board’s proposed regular dividend for 2006 of SEK 3.80 per share and an extra dividend of SEK 2.20 per share, amounting to a total of SEK 873 M (SEK 5.40 per share for 2005, total of SEK 786 M). The AGM adopted 2 May 2007 as the record date for entitlement to receive dividends, which means that dividends are expected to be disbursed on 7 May 2007.
In connection with presentation of its proposals, the Nominating Committee reported on its work.

The AGM re-elected sitting Board members Annika Bäremo, Stefan Erneholm, Jan-Erik Forsgren, Carina Malmgren Heander, Anders Ilstam, Carl-Erik Ridderstråle and Kai Wärn, and elected Staffan Jufors as a new Board member. Staffan Jufors holds an M.Sc.Econ/MBA degree and is President and CEO of Volvo Truck Corporation.

Anders Ilstam was elected as the new Chairman of the Board.

The AGM approved total Board fees of SEK 1,600,000, of which SEK 400,000 will be paid to the Chairman and SEK 200,000 to each Board member not employed by the company. Total fees to the members of the Audit Committee were approved in an amount of SEK 175,000, of which SEK 75,000 will be paid to the chairman of the Audit Committee and SEK 50,000 to each of the other members. Fees to the auditors will continue to be paid according to current account.

The Board’s proposed principles for remuneration and other terms of employment for the executive management were approved.

The AGM approved the submitted proposal that the Nominating Committee to serve until the end of the next AGM consist of the Board Chairman and one representative for each of the four largest shareholders in terms of voting power, of whom the representatives may not be Board members of the company. The composition of the Nominating Committee ahead of the 2008 AGM shall be published as soon as it has been established, but no later than six months before the AGM. No fees shall be paid to the members of the Nominating Committee. The Nominating Committee shall make recommendations regarding election of a chairman of the AGM, the number of Board members, fees to Board members and auditors and election of Board members and the Board Chairman.

At the statutory meeting following the AGM, Annika Bäremo, Stefan Erneholm and Carl-Erik Ridderstråle were appointed to the Audit Committee. Carina Malmgren Heander, Carl-Erik Ridderstråle and Anders Ilstam were appointed to the Remuneration Committee. Patrik Johnson, who is Senior Vice President Chief Financial Officer of Seco Tools and not a member of the Board, was appointed as Board Secretary.

Fagersta, Sweden, 26 April 2007

SECO TOOLS AB; (publ)

THE BOARD OF DIRECTORS

For additional information contact Kai Wärn, President and CEO, telephone +46 (0) 223-401 10 or Patrik Johnson, CFO, telephone +46 (0) 223-401 20. E-mail can be sent to investor.relations@secotools.com

Previously published information can be found under “Investor Relations & Corporate Governance” on the Seco Tools website (www.secotools.com). Seco Tools AB’s corporate registration number is 556071-1060 and the company’s address is Seco Tools AB, SE-737 82 Fagersta, Sweden. The telephone number to the Group head office is +46 (0) 223-400 00.