Electrolux Group Acquires Diamant Boart International, World-Leader in Diamond Tools; Addition Makes Electrolux Market Leader in North America.

Business Editors

Electrolux Group has finalized the acquisition of Diamant Boart International S.A., a world-leading manufacturer and distributor of diamond tools and related equipment for the construction and stone market. The seller is Candover, a UK-based private equity company.

The purchase price is SEK 1,700m (approximately $184.7m) on a debt-free basis. The acquisition is expected to increase the Group's operating income by approximately SEK 200m ($21.7m) on an annual basis.

In 2001, Diamant Boart had sales of SEK 2,500m (approximately $272m) and 2,000 employees worldwide. The company is headquartered in Brussels.

"Diamant Boart is an excellent fit to our own business, and this acquisition will make us the world's largest manufacturer of diamond tools for the construction and stone industries," says Bengt Andersson, Head of Electrolux Professional Outdoor Products. "Diamant Boart is an acknowledged technical leader in this industry and its position will be further strengthened under our ownership."

In 2001, Electrolux Group worldwide sales of power cutters and diamond tools totalled SEK 1,300m (approximately $141m) . This business is part of Electrolux Professional Outdoor Products, and the products are sold under the brands Dimas and Partner.

In North America, the acquisition includes Diamant Boart's Target brand of professional blades and sawing equipment and Felker brand of tile saws and blades. Target is the North American leader in this equipment field. The product range includes diamond blades, concrete saws, tile saws, masonry saws, diamond core bits and core drills. Information is available at www.targetblue.com or www.felkersaws.com. The Target and Felker brands marketed by Diamant Boart North America are headquartered in Olathe, Kansas with a factory in Columbia, South Carolina.

Current Electrolux Group diamond blade and cutting equipment businesses in North America include Dimas with operations in Grandview, Missouri, Torrance, California and North Bay, Ontario and Partner Industrial of Itasca, Illinois.

The Operation will be part of the Group's Professional Outdoor Products business area and will be included in the Group's accounts as of July 1, 2002.

Electrolux is the world's largest producer of powered appliances for kitchen, cleaning and outdoor use combined, such as refrigerators, washing machines, cookers, vacuum cleaners, chain saws, lawn mowers, and garden tractors. In 2001, Group sales were over $13 billion and the Group had 87,000 employees. Every year, customers in more than 150 countries buy more than 55 million Electrolux Group products for both consumer and professional use. The Electrolux Group includes famous appliance brands such as AEG, Zanussi, Frigidaire, Eureka, and Husqvarna.

North American sales totalled about 5 billion with over 21,000 employees and operations in 19 U.S. States, 3 Canadian provinces and in Mexico.

For more information and comments by Bengt Andersson, Head of Electrolux Professional Outdoor Products, Electrolux Press Hotline is available at [phone]. For more information in NA contact Tony Evans, Electrolux Corporate Communications - [phone], [e-mail]