Squeeze out of shares in Leica Geosystems AG

As anticipated the Commercial Court of the Canton of St. Gallen has sanctioned the compulsory squeeze out of the remaining shares of Leica Geosystems Holdings AG (Leica). The consideration for the outstanding shares was determined at CHF 440 plus five B-shares in Hexagon for each share in Leica (i.e. the same as in the bid for Leica) and, as compensation for the dilution resulting from the rights issue completed in May 2006, an additional CHF 28.11.

In the light hereof and in order to finalize the squeeze out procedure, the Board of Directors made a decision, on the basis of the general meeting's authorization, on 10 August 2006 to increase the share capital of the company by 794 540 SEK by issuing 198 635 B-shares. The right to subscribe to the new shares shall be granted to holders of such Leica shares affected by the compulsory squeeze-out procedure with the right and obligation for subscribers to pay for the new Hexagon shares by transfer to Hexagon of their respective shares in Leica.

It is anticipated that both the cash transfers and the transfers of the Hexagon shares to those affected by the compulsory squeeze-out, will be completed on or about 25 August 2006.

As has been communicated previously the Leica share will following the squeeze out procedure be delisted from SWX Swiss Exchange.

For further information please contact:

Sara Kraft, Information and IR Manager, Hexagon AB, +46 8 601 26 27