Exchange ratio and subscription price set

Not for distribution in the United States of America, Canada, Japan or Australia.

· Shareholders are entitled to subscribe for one new share for each four old shares held.
· Issue price of SEK 155 per share.
· Subscription period 27 March - 12 April 2006.

The Board of Directors of Hexagon AB (publ) has today set the exchange ratio and subscription price for Hexagon's rights issue that was resolved on 14 February 2006. The shareholders have the right to subscribe for one new share for every four old shares held. Series A shares entitles to the subscription of series A shares and series B shares entitles to the subscription of series B shares. The issue price is SEK 155 per share, which means that the rights issue will increase Hexagon's share capital with a maximum of approximately 2 700 MSEK.

The rights issue will increase the share capital with a maximum of 69 900 108 SEK through the issue of not more than 787 500 new shares of series A and not more than 16 687 527 new shares of series B. The record date at the Swedish Securities Register Centre (Sw: "VPC AB") for participation in the rights issue will be 22 March 2006 and subscription shall take place during the subscription period 27 March until and including 12 April 2006, or such later date as decided by the Board of Directors. Subscription rights of series B shares will be traded on the Stockholm Stock Exchange and on the SWX Swiss Exchange during the period from and including 27 March 2006 up to and including 7 April 2006. The new shares will entitle to dividends decided in the financial year 2006, i.e. also for the financial year 2005.

The rights issue aims to strengthen the capital structure and the liquidity of the company following Hexagon's acquisition of Leica Geosystems Holdings AG and to finance a continued expansion of Hexagon. The rights issue is subject to approval at the Extraordinary Shareholders' Meeting to be held on 17 March 2006.

As previously notified, Mr. Melker Schörling, owning 22.8 per cent of the share capital in Hexagon, has towards the company committed to subscribe for shares at a total value of not less than approximately 748 MSEK in the rights issue, corresponding to approximately 27.6 per cent of the share issue, whereof 22.8 per cent would be subscribed exercising own subscription rights and 4.8 per cent would be subscribed without subscription rights. Mr. Maths O. Sundqvist, owning 14.3 per cent of the share capital in Hexagon, has equivalently committed to subscribe for shares at a total value of not less than approximately 469 MSEK in the rights issue, corresponding to approximately 17.3 per cent of the share issue, whereof 14.3 per cent would be subscribed exercising own subscription rights and 3.0 per cent would be subscribed without subscription rights.

As previously notified, outstanding shares in Leica Geosystems Holding AG are subject to a compulsory redemption procedure in Switzerland and are expected to entail the issue of approximately another 200 000 shares in Hexagon, in addition to a cash compensation. In this compulsory redemption procedure, Hexagon will look favourably upon the minority shareholders of Leica Geosystems Holdings AG being appropriately compensated for the economic effects on the Hexagon-share caused by the proposed new share issue.

Time schedule for the rights issue:

 17 March 2006            The Extraordinary Shareholders' Meeting decides
                          on the resolution of the Board of Directors
                          regarding the rights issue.
                          Last day of trading in the Hexagon share
                          including right to participate in the rights
                          issue.
                           
 20 March 2006            First day of trading in the share excluding
                          right to participate in the rights issue.
                           
 22 March 2006            Record date for participation in the rights
                          issue, i.e. shareholders registered in the
                          share register of Hexagon as of this day will
                          receive subscription rights for participation
                          in the rights issue.
                           
 27 March - 7 April 2006  Trading in subscription rights.
                           
 27 March - 12 April 2006 Subscription period.

For further information please contact:
Sara Kraft, IR Manager: +46 8 601 26 27