Electrolux to Acquire Diamant Boart International, World-Leader in Diamond Tools.

Business Editors

CLEVELAND--(BUSINESS WIRE)--May 2, 2002

Addition of Target brand operations makes

Electrolux Professional Outdoor market leader in North America 

The Electrolux Group (Nasdaq:ELUX) has signed an agreement to acquire 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 (EUR 185m). The acquisition is scheduled close on or about June 30, 2002, and is subject to various closing conditions, including regulatory approvals from competition authorities.

In 2001, Diamant Boart had sales of SEK 2,500m (EUR 280m) 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."

The acquisition is expected to increase the Group's operating income by approximately SEK 200m (EUR 22m) on an annual basis.

In 2001, Electrolux had sales of SEK 1,300m (EUR 145m) in the product areas of power cutters and diamond tools. 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 blades and power cutting equipment. Target is the acknowledged 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.

Target and Diamant Boart North American headquarters are located in Olathe, Kan. Target also manufactures in Columbia, S.C.

The new operations join Electrolux Group's existing diamond blade and cutting equipment businesses in North America. This includes Dimas with operations in Grandview, Mo., Torrance, Calif. and North Bay, Ontario which produce and market products under the Magnum, Cushion Cut and Dimas brands. The Group also markets Partner hand-held cutting equipment through Partner Industrial of Itasca, Ill. (See www.dimas.com and www.partner-usa.com for further information.)

Combined, Electrolux now offers the widest range of equipment and blades for the growing construction industry dealing with concrete, masonry, tile stone and brick.

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 - 614/761-2633, [e-mail]

Fact Sheet

Electrolux Group Professional Outdoor Products - North America

Electrolux Group is a global leader in providing products for professional use in the construction, lawn & garden and forestry industries.

Acquisition of Diamant Boart SA makes the Group the world leader in diamond tools and equipment for the construction and stone industries. See www.diamant-boart.com for additional information.

In North America, the acquisition includes Diamant Boart's Target brand of blades and sawing equipment. Target is a North American leader in this equipment field. Target's product range includes diamond blades, concrete saws, tile saws, masonry saws, diamond core bits and core drills. Information is available at www.targetblue.com.

Target and Diamant Boart North American headquarters are located in Olathe, Kan. Target manufactures products at a factory in Columbia, S.C.

The new Diamant Boart operations join Electrolux Group's existing diamond blade and cutting equipment businesses in North America. This includes Dimas based in Grandview, Mo., Torrance, Calif. and North Bay, Ontario which produces and markets products as Magnum, Cushion Cut and Dimas brands and Partner Industrial of Itasca, Ill., marketer of Partner hand held cutters. Other web sites include - www.dimasusa.com and www.partnerusa.com. Combined, Electrolux now offers the widest range of equipment and blades for the growing construction industry dealing with concrete, masonry, tile, stone and brick.