Atlas Copco Invests in Environmental Technology.

STOCKHOLM, Sweden -- Regulatory News:

Atlas Copco (STO:ATCOA) (STO:ATCOB) owned Intermech Ltd, New Zealand, a world pioneer and exporter of clean fuel CNG (compressed natural gas) compressors, is expanding its environmental footprint with the opening of its new, purpose-built, state-of-the-art factory.

A vehicle fuelled with CNG emits a carbon footprint that is less by a quarter of a petrol or diesel vehicle, and thus represents a viable, low-emission energy source for metropolitan centers, especially those with high-density populations.

"This investment further enhances Atlas Copco's commitment to environmental-friendly technologies," says Ronnie Leten, President of Atlas Copco's business area Compressor Technique. "It also strengthens Intermech's position in the fast growing CNG market and allows us to better serve the needs of our customers."

The investment in the 3000-square meter, environmentally certified factory will enable Intermech's 80 employees to immediately increase production capacity by 200% and slash order-to-delivery times from nine to three months. Product development will be also be enhanced with the expansion of the company's research and development division which is also located at the new premises.

Intermech designs, manufactures, and markets a range of compressed natural gas (CNG) compressors and related equipment used at filling stations for vehicles fuelled with natural gas. Atlas Copco acquired Intermech in 2005 in response to the increasing global demand for alternative transport fuels. The company operates under the Oil-free Air division of the Compressor Technique business area.

Atlas Copco may be required to disclose the information provided herein pursuant to the Securities Markets Act. The information was submitted for publication at 08:45 on April 18, 2008.

Atlas Copco is a world leading provider of industrial productivity solutions. The products and services range from compressed air and gas equipment, generators, construction and mining equipment, industrial tools and assembly systems, to related aftermarket and rental. In close cooperation with customers and business partners, and with 135 years of experience, Atlas Copco innovates for superior productivity. Headquartered in Stockholm, Sweden, the Group's global reach spans more than 160 markets. In 2007, Atlas Copco had 33 000 employees and revenues of BSEK 63 (BEUR 6.7). Learn more at www.atlascopco.com.

Oil-free Air is a division within Atlas Copco's Compressor Technique business area. It develops, manufactures, and markets oil-free air compressors for all kind of industries worldwide where the air quality is vital, and oil-injected compressors for less critical applications. The division focuses on air optimization systems and quality air solutions to further improve customers' productivity. The divisional headquarters and main production center are located in Antwerp, Belgium.

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