Studsvik concentrating activities, divesting business and assets in subsidiary

Studsvik concentrating activities, divesting business and assets in subsidiary As part of its process of concentration on nuclear technology and nuclear medicine, Studsvik AB has divested the business and assets in the subsidiary Studsvik Polymer AB to the UK based Bodycote Materials Testing Group Ltd. The sale will generate capital gains of SEK 21 million for Studsvik. "Our long-term strategy is to concentrate Studsvik and focus on our nuclear technology and nuclear medicine activities, also an important step ahead of our stock market listing," reported Carsten Olsson, Studsvik's CEO and President. "Studsvik Polymer is the only group company whose clients have no nuclear technology link- so we have been seeking a new owner for the unit. I'm very pleased that Bodycote, the world leader in materials testing, has acquired Polymer. Bodycote will provide Studsvik Polymer with an owner focused on materials testing," added Mr. Olsson. Studsvik Polymer AB (henceforth known as Bodycote Polymer AB) is active within lifetime testing of polymeric materials; its customers are manufacturers and users of polymeric components. Polymer generated sales of SEK 18.5 million in 1999 and adjusted earnings of SEK 3.8 million. The company will continue operations at its recently opened laboratory premises at Studsvik. Bodycote Polymer AB will employ all staff, including CEO Mats Ifvarson, who will remain as CEO of the new company. Bodycote Materials Testing Group Ltd. is owned by quoted UK Company Bodycote International plc. The company is the world leader in materials testing and has 32 laboratories in Europe, the Middle East and the US. Traditionally, the operations have primarily comprised lifetime testing of metals, although this has been extended to encompass polymeric materials as a result of the acquisition of Polymer and Broutman Inc. of the US. For further information, please contact: Studsvik AB Carsten Olsson, CEO and President, Studsvik AB on +46 (0)155 22 10 20 or +46 (0)70 967 7020 Thomas Backteman, Senior Vice President, Communications and Investor Relations, Studsvik AB on +46 (0)155 22 10 66 or +46 (0)709 677 066 Bodycote Material Testing Group Ltd Mr Derek R Sleight, Chairman and Main Board Director, Bodycote Material Testing Group Ltd., on +44 131 333 17 33 or +44 7801 613178 Bodycote Polymer AB Mats Ifwarson, CEO, Bodycote Polymer AB on +46 (0)155 22 16 75 Facts about Studsvik 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 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 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 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 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 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/1999/12/22/19991222BIT00450/bit0001.doc http://www.bit.se/bitonline/1999/12/22/19991222BIT00450/bit0002.pdf