Hexagon implements new strategy

13 June 2005

Hexagon has reached an agreement with Segulah Nordic II AB, a fund controlled by the private equity company Segulah III L.P., to sell its business area Automation for MSEK 1,153 on a debt and cash free basis. The transaction is conditioned by Segulah Nordic II AB obtaining a binding agree-ment regarding the financing. Automation represents approximately 26 per cent of Hexagon's turnover and 16 per cent of its operating earnings. The transaction, which is in line with Hexagon's stated strategy to focus on Metrology and Polymers, is expected to close on July 1, 2005. The transaction will result in a capital gain of approximately MSEK 460.

Today, Hexagon AB also announces its intention to launch a public cash bid for 100 % of Leica Geosystems AG's shares, listed on the SWX Swiss Exchange. Leica Geosystems is a geospatial data and measurement technology specialist and a world-leading player within the macro segment of the measurement technology market. In the fiscal year ended 31 March 2005, Leica Geosystems gener-ated revenues and operating profit of approx. MSEK 4.600 and MSEK 420 respectively.

The offer will be financed via equity as well as through bank financing. The Board of Directors intends to propose a new share issue after the conclusion of the transaction.

"Post the acquisition, Hexagon will become one of the world-leaders in measurement technology, with revenues of approximately MSEK 12.000 for the group, of which slightly less than MSEK 9.000 within measurement technology. The Business Area Measurement Technology, which will combine Hexagon Metrology and Leica Geosystems, will develop, manufacture and market information systems for one, two and three dimensional measurement applications. The combination will be beneficial to both Hexagon and Leica Geosystems in terms of R&D, Software development as well as utilisation of Aftermarket resources and sourcing of components. Following this acquisition, future focus will primarily be on growth and utilisation of the different strengths of the two companies", says Ola Rollén, President and CEO of Hexagon AB.

Hexagon AB invites interested parties to a press and telephone conference today, Monday, June 13, 2005, at 10:30 am CET in Zurich. Please refer to www.hexagon.se for further instructions. Hexagon will also host a conference in Stockholm for subsequent questions on Tuesday, June 14, 2005, at 1:00 pm. To register for the conference, please contact Hexagon, Ms Karin Höglund phone no.
+46 8 601 26 20, before 11:00 am on June 14.

For further information, please contact:

 Ola Rollén, President & CEO		
 Hexagon AB	
 Tel: +46-8-601 26 20	
 Håkan Halén, CFO           
 Hexagon AB
 Tel: +46-8- 601 26 20

This media release does not constitute a pre-announcement according to Article 28 letter a of the Swiss Federal Act on Stock Exchanges and Securities Trading.

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