Hexagon acquires American metrology operation

 Hexagon  has signed an agreement to acquire the metrology operations of
 the U.S. based company Sheffield Automation LLC, a wholly owned subsidiary  within  the  ThyssenKrupp Group. Hexagon  will operate  the business through a new company - Sheffield Measurement Inc. The initial turnover is estimated to amount to approx. 17 MUSD, consisting of sales of  measuring machines and related services. Sheffield Measurement Inc. will initially employ some 85 people.

 Sheffield is a strong global trademark within the metrology industry,
 holding brand names such as Cordax, Apollo, Discovery and Endeavour. By
 this acquisition Hexagon will reach approx. 50 per cent  of  the  total
 number of installed coordinate measurement machines (CMM) amounting  to
 80.000 units. This offers Hexagon great possibilities for a continuous
 expansion of Hexagon's software PCDMIS upon upgrading of the installed
 CMM's.

 The  acquisition  of Sheffield shall be perceived as a reinforcement of
 Hexagon Metrology's global presence concerning sales of new CMM's as
 well as the very interesting aftermarket business. The acquisition is
 estimated to be effective on March 1st, 2004 and will contribute to
 Hexagon's earnings during this year.

For further information, please contact:

 Ola Rollén, President and    Bill Gruber, President
 CEO                          Hexagon Metrology North
 Hexagon AB                   America
 Phone: +46 8 601 26 20       Phone: +001 401 886 21 50

 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 four  business  areas:
 Hexagon  Automation, Hexagon Engineering, Hexagon Metrology and  Hexagon
 Polymers.  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.