Hexagon acquires C E Johansson

11 April 2002

HEXAGON ACQUIRES THE METROLOGY COMPANY CE JOHANSSON AND INTENDS TO ISSUE NEW SHARES ·Hexagon acquires the metrology company CE Johansson which has a turnover of approx. 170 MSEK p.a. and operates in the Nordic countries, France, UK, Italy and Germany ·Through the acquisition Hexagon strengthens it's leading position within the metrology area in Europe and it's global position within the global medical metrology business ·In order to finance the acquisition and to provide capacity for further acquisitions, Hexagon intends to issue new shares with preferential rights for the company's shareholders (rights issue) ·The issue amount will be around 400 MSEK. Approx. 57 per cent of the rights issue is guaranteed and shareholders representing another 8 per cent are positive to the rights issue and have declared that they intend to subscribe for their share of the issue The acquisition Hexagon Metrology, Hexagon's business unit within metrology, was formed last year in connection with Hexagon's acquisition of Brown & Sharpe. The restructuring of Brown & Sharpe develops according to plan. The turnover in the business unit is estimated to approx. 3 GSEK for the year 2002. Hexagon Metrology is a world leading metrology group with production of coordinate measurement machines (CMM:s), software and hand tools within 7 business units around the world. Extensive aftermarket services are fulfilled by 25 regional Precision Centres with responsibility for upgrade of machines and software, education, contracted maintenance and other services. Hexagon Metrology has today reached an agreement to acquire the metrology company CE Johansson from the American company Newport Corporation. CE Johansson operates in the Nordic countries, France, UK, Italy and Germany. The company has net sales of approx. 170 MSEK p.a. and employs approx. 150 people. The acquisition, which is subject to approval by the competition authorities, is expected to be completed as of May 1st, 2002. The acquisition is expected to affect the business unit's operating result positively already this year and bring a number of synergies. Through the acquisition of CE Johansson, Hexagon Metrology will strengthen its leading position in Europe with a strong and well- recognized brand. The acquisition also strengthens Hexagon's global position within the medical metrology business, where CE Johansson, among other things, is sub-supplier to Elekta's radiation surgery using the Leksell Gamma Knife. On the Nordic and European market CE Johansson will market its products and further develop the corresponding aftermarket business, in accordance with the concept, which Hexagon Metrology successfully has developed on other markets all over the world. The rights issue The Metrology business is fragmented and the acquisition of CE Johansson should be seen as one of several acquisitions by Hexagon in its continued expansion within this area during 2002. Additionally, Hexagon plans to carry out acquisitions within its other business units aiming at strengthening certain operations within them. The acquisitions can partly be financed by internally generated funds. However, the Hexagon Board of Directors is of the opinion that the company, to be able to take advantage of acquisition opportunities presently existing and thereby be given the possibility to expand in the desired pace, needs a capital injection from the shareholders. Considering the above, the Board of Directors intends on or around April 16, 2002 to decide on an issue of new shares with preferential rights for the Hexagon shareholders. The issue amount will be approx. 400 MSEK. The issue will be subject to approval by an Extraordinary General Meeting, which is expected to be held on May 6th, 2002 in connection with the Annual General Meeting. The prospectus is expected to be distributed or on around May 14th, 2002, and the subscription period is expected to run between May 17th and June 7th, 2002. Mr Melker Schörling who controls 24.2 per cent of the capital and Mr Maths O Sundqvist with 12.6 of the capital, have both undertaken to subscribe for shares, corresponding to their respective holdings in the company. Additionally, Mr Schörling has guaranteed another 20 per cent of the issue. Other owners, representing another 8 per cent of the share capital, have declared that they are positive to the issue and intend to subscribe for their respective shares of the issue. For further information, please contact: Ola Rollén, President and CEO Håkan Halén, CFO Hexagon AB Hexagon AB Phone: +46 (0)8 - 601 26 20 Phone: +46 (0)8 - 601 26 20 Hexagon AB is a multinational engineering group with the long-term ambition of positioning itself as number one or number two within its strategic sectors. The operation is divided into three business areas: Hexagon Automation, Hexagon Engineering and Hexagon Metrology. The group's targets are to increase earnings per share after tax by at least 15 per cent p.a., and achieve a return on capital employed higher than 15 per cent over the business cycle. Current turnover amounts to more than 7 GSEK p.a. Enskilda Securities is Hexagon's advisor in connection with the rights issue

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