Acquisition of Leica-shares and resolution on new issue

Hexagon has agreed upon the acquisition of a total of 16,400 outstanding shares in Leica Geosystems. The sellers of the shares will for each share in Leica Geosystems receive the same consideration as previous Leica shareholders, i.e. a cash consideration of CHF 440 plus five series B shares in Hexagon. After the acquisition of these shares, Hexagons participating interest amounts to 99,2 per cent.

In connection with the said acquisition of Leica-shares, the Board of Hexagon resolved today to - in accordance with the authorization given by the Extraordinary Shareholders' Meeting on 15 September 2005 - issue new B-shares in the company. The resolution means that the share capital of Hexagon will be increased by SEK 328,000 by new issue of 82,000 B-shares, each with a nominal value of SEK 4. The right to subscribe for the new shares shall only be granted to Pictet Funds Small Cap Europe, Sunrise Partners Limited Partnership and Banca del Gottardo with the right and the obligation for these subscribers to pay for the new shares in Hexagon by transfer of their shares in Leica Geosystems to Hexagon, whereby the subscribers for each share in Leica Geosystems shall be entitled to subscribe for 5 new B-shares in Hexagon and in addition thereto receive a cash consideration in accordance with the terms and conditions of the share purchase agreements entered into with the subscribers.

The subscription period for the new issue of shares shall commence as per today's date. Subscription of the new shares in Hexagon shall be made on a subscription list no later than 8 December 2005, with a right for the Board to extend the subscription period. Payment for the new shares in Hexagon shall be made no later than 9 December 2005 by transfer to Hexagon of the Leica-shares used for subscription in accordance with the above, as capital contributed in kind, with a right for the Board to extend the payment period.

For further information, please contact:

Ola Rollén, President and CEO
Hexagon AB
Tel: + 46 8 601 26 20

Håkan Halén, CFO
Hexagon AB
Tel: + 46 8 601 26 20