Studsvik acquires 30 per cent of the German engineering company WTI

Studsvik acquires 30 per cent of the German engineering company WTI As an additional step in our efforts on the German and international nuclear market, Studsvik has acquired 30 percent of the German engineering company Wissenschaftlich-Technische Ingenieurberatung GmbH (WTI). Studsvik is now, besides GNS, Gesellschaft für Nuklear-Service, which holds 48 per cent of the shares, a major shareholder of WTI. The remaining shares are with the founder and Managing Director, Dr. Heinz Geiser and an investment company (JKGB). The annual turnover of WTI's engineering services is around DEM 11.5 million (equivalent to SEK 52 million). WTI provides engineering services since 20 years in the nuclear field and cooperates closely with GNS, which has similar responsibility in Germany as the Swedish Nuclear Fuel and Waste Management Company (SKB). WTI provides a wide range of engineering services, mainly in the following areas: @ Safety analysis and calculation @ Waste management planning and studies for the operation and decommissioning of nuclear installations @ Computer-aided design analyses, structural evaluations, thermodynamics, shielding and criticality analyses @ Construction and project work, turn-key planning/erection (particularly for storage facilities for low, intermediate and high level radioactive materials) "By gaining access to WTI's wealth of experience, we can further increase our share of the German, and hopefully the international, market," says Carsten Olsson, Studsvik's President and Group CEO. "Through last year's acquisition of the German service company SINA, we established a firm foothold on the German market. The acquisition of thirty percent of WTI will further strengthen our position, as well as the established cooperation with GNS" says Carsten Olsson. We expect a synergy effect from this acquisition through the opportunity of working with SINA, as well as with other segments of the strategic business units Industrial Services and Waste & Decommissioning. Furthermore, we will be able to utilise the extensive German know-how on other markets where we are active and are planning operations," concludes Carsten Olsson. For additional information, please contact: Carsten Olsson, President and CEO of Studsvik AB, +46 155 22 10 20 or +46 70 325 10 20 Dr. Heinz Geiser, President WTI, +49 2461 933 101 Thomas Backteman, Senior Vice President for Communications and Investor Relations of Studsvik AB, +46 155 22 10 66 or +46 70 559 10 66 Facts about Studsvik AB Studsvik is a high-tech company, focusing on the nuclear power industry and nuclear medicine. Business is conducted through four Strategic Business Units (SBUs): Nuclear Technology, Waste & Decommissioning, Industrial Services, Nuclear Medicine as well as through the unit, Other Business. Nuclear Technology offers products and services related to nuclear power plant operation. These include the testing and analysis of nuclear fuel and materials, computer codes for reactor operation, consulting and instrumentation for the measurement of radiation. Activities are dependent on Studsvik's nuclear reactors and specialist laboratories, located outside Nyköping. These facilities are also used for silicon doping for the semi- conductor industry as well as for research purposes and for radioisotope production. Nuclear Technology's range of products includes: @ Testing and analysis of nuclear fuel and materials @ Core design and core management computer codes @ Consulting within safety and environmental analysis @ Neutron doping of materials for semi-conductor and radioisotope production as well as for research purposes @ Instruments for radiation monitoring, core monitoring etc. Nuclear Technology's existing customers are mainly active within the nuclear power industry in Europe, the USA and Japan. Nuclear power plants accounted for about 65 per cent of revenues in 1998 while authorities and other non- nuclear power-related customers accounted for the remaining 35 per cent. Waste & Decommissioning treats low and intermediate level waste from nuclear reactors and provides services for the dismantling of nuclear facilities. European operations focus on the treatment of low level waste in Studsvik's incineration and melting facilities located outside Nyköping. US operations, conducted at Studsvik's facilities in Erwin, Tennessee, include volume and weight reduction of ion-exchange resins from commercial nuclear power plants in the USA. Activities at Studsvik RadWaste's facilities outside Nyköping comprise: @ Incineration of organic waste. The process results in a valuable volume reduction and a stable end product @ Cleaning, segmentation and melting of metal components no longer in service. Metal which is released for unrestricted re-use is recycled to the steel industry. @ Reconditioning of intermediate level waste @ Industrial Services mainly provides services to the nuclear power industry and also offers services to other industries. Operations include decontamination, health physics, chemical cleaning and dismantling of nuclear facilities as well as process cleaning Activities have historically been concentrated to Sweden. However, since the German company, SINA, was acquired in 1998, the German business accounts for more than a half of the SBU's income. About 65 per cent of revenues in 1998 came from nuclear power plants while regulatory authorities and other non-nuclear customers accounted for the remaining 35 per cent. Nuclear Medicine provides a number of nuclear-related products and methods for medical use. The range includes a method for the treatment of brain tumors, an instrument for diagnosing stomach ulcers and a number of radioisotopes. Nuclear Medicine is a new Strategic Business Unit. Activities are currently being established and, in 1998, sales only comprised medical isotopes and the Heliprobe instrument. Other Business includes new products and services based on Studsvik's expertise within the nuclear field but which are mainly provided to non- nuclear process industry. Activities in this area include the testing and lifetime engineering of polymers, metals testing and products for optimizing the operation of nuclear and thermal power plants. To rapidly establish a broader platform, Studsvik's strategy is to develop the business through acquisition. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/05/31/19990531BIT00240/bit0001.pdf http://www.bit.se/bitonline/1999/05/31/19990531BIT00240/bit0002.doc