Personnel cuts at Ovako Steel AB

Personnel cuts at Ovako Steel AB Ovako Steel AB - the world's leading supplier of special steels for the rolling bearing industry and engineering companies with particularly high demands in terms of quality - has served notice of its intention to reduce the work force at the company's plants in Hofors and Hällefors, in Sweden, by a total of 200 people. The redundancy notices result from a combination of already implemented and ongoing rationalization programs within the production and administration areas and weakened order bookings. In Hofors, about 120 people are involved, equally divided between members of PTK (the Private Sector's Salaried Employees Negotiating Cartel) and Metall (the Swedish Metal Workers' Union). In Hällefors, 45 Metall members are affected and 35 PTK members. Ovako Steel AB is part of the Special Steels business area within the SKF Group, which has 2 800 employees and reported sales of approximately SEK 3.4 billion in 1997. Göteborg, October 12, 1998 Aktiebolaget SKF (publ). For further information, please contact: Lars G Malmer, SKF Group Communication, tel +46-31-3371541, fax +46-31-3371722, lars.g.malmer@skf.com Martin Ivert, Executive Director, Ovako Steel AB, tel +46-705-10 14 24 Aktiebolaget SKF, SE-415 50 Göteborg, Sweden tel: +46-31-3371000, fax: +46-31-3372832, www.skf.com