Incentive to Become Pure Medical Technology Company - Changing Name to Gambro.

STOCKHOLM, Sweden--(BUSINESS WIRE)--March 6, 1998--

-- Incentive to become a pure medical technology company - changing

name to Gambro.

-- Condensed program to complete streamlining

- The legal structures Gambro and Incentive to be merged.

- Mikael Lilius to be president of Gambro AB, July 1, 1998.

- Goodwill Incentive/Gambro of SEK 10 billion charged against

shareholders' equity on July 1, 1998.

- MacGREGOR will be divested.

- ABB AB holding: Final decision when the tax implications are

clarified.

- New dividend policy.

-- 5:1 share split proposed.

-- Heavy focus/expansion within medical technology during 1997.

- Acquisition of clinic company Vivra and other clinics in

U.S., South America and Europe.

- Continued heavy streamlining of the Group through sales of

four subsidiaries and major shareholdings

-- In 1997

- Sales amounted to SEK 19,490 M (20,220), for current Group

structure +27.5%, including acquisitions.

- Earnings after financial items was SEK 13,890 M (5,228),

including nonrecurring items of SEK 12,949 M (2,570).

- Profit per share totaled SEK 168.49 (42.18).

-- Board proposes a dividend of SEK 10:00 (10.00).

REPORT ON 1997 OPERATIONS

Revenues amounted to SEK 19,490 M (20,220). Sales of the Group as presently structured increased by approximately 27.5% including acquisitions, compared with the preceding year.

Operating earnings after financial items was SEK 13,890 M (5,228). Earnings include items affecting comparability resulting from the sale of shares and companies totaling SEK 12,949 M (2,570). Profit per share was SEK 168.49 (42.18), of which SEK 163.25 (20.53) is attributable to items affecting comparability. The Board proposes a dividend of SEK 10:00 (10.00) per share.

The strategic transformation of the Group during 1997 was substantial. Numerous divestments of shareholdings and companies were made. At the same time, the core area of Medical Technology was strengthened, mainly through the acquisition of an American dialysis clinic company.

Through Gambro, Incentive is concentrating on medical technology, with the intention of completely restructuring Incentive into this area. Accordingly, Incentive is proposing changing its name to Gambro effective July 1, 1998. Mikael Lilius will become president of Gambro on July 1, 1998, when Berthold Lindqvist retires. The legal structures Gambro and Incentive will be merged. Analogous with a spin-off, the goodwill in Incentive for Gambro will be charged against shareholders' equity in an amount of about SEK 10 billion on July 1, 1998. The goodwill in Gambro resulting from acquisitions of about SEK 14 billion is not affected.

The shareholding in ABB AB will be reviewed with the intention of reaching a definitive decision when the tax implications are clarified. A new dividend policy is being established in line with the Group's new focus, whereby value will, to a greater extent, be created through growth. A 5:1 share split is proposed. -0-

Group key ratios

SEK M                                    1997          1996

Revenues                               19,490        20,220

Operating margin, %                      72.5          20.0

Earnings after financial items         13,890         5,228
  - of which, items affecting
    comparability                      12,949         2,570

Return on shareholders' equity(a)%       57.6          21.5

Return on total assets, %                35.3          19.1

Profit per share (a), kr               168.49         42.18

Shareholders' equity per share, SEK       371           213

Solidity (equity/assets ratio), %          52            44

(a) After full tax
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EARNINGS AND PROFITABILITY

     Earnings after depreciation amounted to SEK 14,135 M (4,050).
Operating earnings of comparable units increased by 10.2% and amounted
to SEK 1,812 M (1,645).
     Earnings after financial items amounted to SEK 13,890 M (5,228).
This includes items affecting comparability totaling SEK 12,949 M
(2,570) from the sale of shareholdings and companies. Included in the
financial items are the earnings of these companies until divestment
date, SEK 237 M. After the sale of about 110 million shares in ABB AB,
the accounting was changed during the period with termination of
equity method accounting for associated companies as of the second
quarter.
     The impact of foreign exchange movements during the year was
about SEK -100 M, compared to 1996. Certain positive exchange effects
during the fourth quarter, due in part to the strengthened dollar,
were offset by the negative impact of the Asian crisis, mainly South
Korea of a loss of SEK 30 M.
     Profit per share was SEK 168.49 (42.18), of which SEK 163.25
(20.53) was attributable to items affecting comparability.

BUSINESS AREAS

MEDICAL TECHNOLOGY - Gambro's invoiced sales amounted to SEK
15,033 M (10,964), an increase of 37% (excl. Vivra 16%). Operating
earnings amounted to SEK 1,721 (1,490), up approximately 16%. The
number of dialysis patients treated at clinics operated by the Gambro
Group amounted to about 33,000 at year-end.
     The Dialysis Products business area's reported sales for the
period totaled SEK 7,435 M (6,798), an increase of 5% for the year.
The volume trend for the business area in Europe and the U.S. followed
market growth, while many markets in the Far East and Latin America
report a higher growth. Sales in Scandinavia, Italy, France, Spain and
eastern Europe were strong. Monitor sales have been successful in the
U.S. and in many European markets.
     The favorable trend of sales for disposable products continued,
especially for the BiCart bicarbonate cartridge. However, the patent
protection BiCart had enjoyed in the EU market was brought to a
definite end by the European patent authority in March. However, the
patent remains in force for other markets. An advance in the BiCart
cartridge concept was introduced during the year in the form of a
cartridge with sodium chloride powder and an ion bag with substances,
which are otherwise components in the dialysis fluid.
     Sales of dialyzers with synthetic membranes continued to be
strong. The increase in production capacity will enable increased
demand in this segment to be met. Production of plate dialyzers was
restructured, with production operations in Lund having been
transferred to the plant in Latina, Italy.
     The Dialysis Care business area reported sales during the period
of SEK 5,716 M (2,417), corresponding to an increase of 120%. During
the year, nearly SEK 14 billion was invested in acquisitions or the
establishment of dialysis clinics.
     At the beginning of the year, Gambro had some 130 clinics which
provide care for almost 11,000 patients, of which 105 clinics were
located in the U.S. In May, acquisition was made of the dialysis
company Vivra's clinic operations, Vivra Renal Care, with 16,000
patients at 262 clinics in the U.S. The acquired operations were
integrated within the Gambro's U.S dialysis operations, effective June
1, and consolidated as of the same date.
     In June, a joint venture was established in Argentina - in which
Gambro owns a two-third interest - and which acquired 18 clinics with
about 1,200 patients during the year. The Argentine market is growing
at an annual rate of 9%, with development of privately owned clinics
being supported through political and financial measures. During the
year, clinics were acquired and established in Spain, Italy, Sweden
and Northern Ireland. As the result of these and other acquisitions
during the year in the U.S. and Europe, some 33,000 patients were
receiving care at Group-owned dialysis clinics. The integration of the
clinics belonging to the former Vivra clinic chain into the Group's
U.S. clinic chain, Gambro Healthcare Patient Services, is continuing
according to plan. The savings projected to result in 1997 from the
acquisition were attained.
     The Blood Component Technology business area continued to develop
favorably during the year, reporting sales of SEK 1,076 M (885), an
increase of 12%. Sales rose 17 percent during the quarter. Growth was
particularly favorable in the U.S., amounting to 15%.
   Sales of the Spectra blood separator  continued  successfully,  due
partly  to the  introduction  during  the year of  version  6 which is
capable  of fully  automatic  removal  of stem  cells  from the  blood
stream.
     The TRIMA Automated Blood Collection System was introduced in
October in certain European markets. TRIMA is a system with broad
application for collecting all types of blood components and adapted
to the requirements of blood banks. With TRIMA, different blood
components can be collected simultaneously from a single blood donor.
     The Cardiopulmonary Care business area had sales of SEK 1,182 M
(1,064), a 1% increase, corrected for currency effects. The volume
increase for oxygenators alone was about 5%. Through a comprehensive
action program, the business area increased its earnings compared with
the preceding year. The volume trend in the U.S. is exceeding market
growth. Europe, mainly Germany, reports strong volume growth.
     A new generation of perfusion system, the Century Perfusion
System, was introduced during the third quarter, resulting in strong
order bookings. A new generation of oxygenator was approved by the FDA
in December, and will be introduced to the market during 1998. An
oxygenator for use in neonatal departments was also introduced during
the year.
     Operating earnings of the business area Medical Technology
amounted to SEK 1,721 M (1,490). The operating margin before
depreciation (EBITDA) during the fourth quarter amounted to 19.7% and
19.6% for the full year.
     The effects of the weakening of the Swedish krona had only a
marginally positive impact on operating earnings for the period. The
fourth quarter was adversely affected by the financial crisis in South
Korea.
     Profitability and financial position. Return on capital employed
for the year amounted to 8.3% (18.2%). Investments amounted to SEK
1,162 M (945).
     President to retire. At mid-year the Group President, Berthold
Lindqvist, will retire.

ENVIRONMENT - At year-end, the business area comprised the TAC
company. It was divested in February 1998 and deconsolidated for
accounting purposes effective January 1, 1998
     TAC is active in building automation. During the year, the first
open system to provide completely new possibilities within building
automation was introduced. The trend in systems operations during the
year was favorable in the Nordic countries, as was the case with
service and maintenance. In the international markets, the trend in
Asia adversely affected order bookings and sales while the trend in
eastern Europe was favorable. Sales for 1997 amounted to SEK 773 M
(714), with operating earnings after depreciation of SEK 31 M (34).
Return on capital employed was 26.2% (17.7%).
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Sales by market(a)%       1997   1996

Nordic region               7     10

Rest of Europe             37     45

North America              41     29

Asia, Australia            13     15

Rest of world               2      1

Total                     100    100

(a) For present structure
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                                                                Change
Sales by business area(a)                   1997        1996     %(b)
SEK M

Medical Technology, of which               15,033      10,964       30

   Dialysis products                        7,435       6,798        5
   Dialysis Care                            5,716       2,417      120
   Internal                                  -376        -200
   Total Renal Care                        12,775       9,015       35
   Blood Component Technology               1,076         885       12
   Cardiopulmonary Care                     1,182       1,064        1
Environment                                   773         714        6
Materials handling                          3,591       3,537       -1
Total present structure                    19,397      15,215       22
Divestments                                     -       5,065
Intra-Group                                    93         -60

Total                                      19,490      20,220

(a) For present structure   (b) Corrected for exchange effects
-0-

Operating earnings(a) by business area

SEK M                            1997       %(b)      1996(c)     %(b)

Medical Technology              1,721       11.4       1,490      13.6
Environment                        31        4.0          34       4.8
Materials handling                 60        1.7         121       3.4

Total, present structure        1,812        9.3       1,645      10.8
Divested companies                  -                    421
Group items:
  - Items affecting
     comparability             12,949                  2,570
  - Depreciation                 -590                   -518
  - Other                         -36                    -68

Total                          14,135       72.5       4,050      20.0

(a)After depreciation, (b) Operating margin, (c) For present structure
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MATERIALS HANDLING -- At year-end, the business area comprised
MacGREGOR, whose products center on shipboard cargo handling, in which
the company is a world leader. In the three most important areas, deck
cranes, hatch covers and RoRo equipment, MacGREGOR holds 35 to 45% of
the world market. The main part of the shipyard industry has relocated
from Europe to Asia, which today, accounts for 60% of shipbuilding
worldwide. In this sector, MacGREGOR has a strong base, including a
partially owned subsidiary in Japan and license manufacturing of
cranes and hatches in China. In addition, a production cooperation
agreement to manufacture hatches was signed with a leading Chinese
company. By various means, MacGREGOR will continue to strengthen its
market position in Asia, and increase its ratio of manufacturing and
purchasing in this region.
     For 1997 as a whole, MacGREGOR's sales trend was favorable
although demand within the company's most important segment weakened
somewhat during the year. Earnings were adversely affected by
comprehensive restructuring during the year. These mainly involved
cutbacks in tanker-product operations, a comprehensive rationalization
in the cargo securing products and measures for increased productivity
within service operations. These measures were implemented at a cost
of SEK 150 M, of which a significant part will have a positive effect
on earnings in 1998. The overall aim is to strengthen competitiveness
and position under altered market conditions and to increase
productivity and, thereby, profitability. Sales during 1997 amounted
to SEK 3,591 M (3,537), with operating earnings after depreciation of
SEK 60 M (121). Return on capital employed was 13.3% (18.2%).

CONTINUED STRATEGIC TRANSFORMATION

     During 1997, the Group continued to focus on medical technology,
accompanied by numerous divestments of shareholdings and companies. At
the same time, operations within medical technology expanded mainly
through the acquisition of an American dialysis clinic chain.

SHAREHOLDINGS

     In March, the sale of the shareholding in the U.S. company Wabco
was concluded, with the proceeds amounting to about SEK 810 M, with a
capital gain of about SEK 65 M.
     In February, approximately 2.8 million Electrolux shares were
sold for about SEK 1.2 billion, with a capital gain of about SEK 360 M
(about SEK 90 M after tax), and in June approximately 110 million ABB
AB shares were sold for about SEK 12.4 billion, with a capital gain of
about SEK 9.9 billion (about SEK 8.5 billion after tax). By virtue of
the sales, these companies are no longer Incentive associated
companies effective beginning the second quarter of 1997, and instead
of earnings participations, the dividends from the shareholdings will
be reported among financial items.
     In the 1997 accounts, earnings participations for ABB AB and
Electrolux of SEK 355 M for the first quarter will be reported among
financial items (SEK 1,786 M for all of 1996). During the second
quarter, dividends received (SEK 412 M) are not reported in the income
statement, but in the balance sheet (under shares and participations)
since the dividends pertain to 1996 earnings.

FOCUS ON MEDICAL TECHNOLOGY

     Through investment and expansion within the core area, medical
technology, and numerous divestments within other business areas,
Medical Technology constitutes the dominant segment of the Group's
operations.
     Within Medical Technology, the strategically important
acquisition of the American dialysis clinic company, Vivra, with 262
clinics and some 16,000 patients, was made in June for about USD 1.5
billion. Vivra was integrated into Gambro, which thereby strengthened
its dialysis care and products position considerably. Clinic
operations also expanded through other acquisitions/new establishments
in Europe, the U.S. and South America. Overall, the number of patients
increased by about 22,000.
     Three subsidiaries within other operations were divested. In May,
the sale was concluded of the HVAC company TA Hydronics, with annual
sales of about SEK 850 M. The proceeds amounted to about SEK 1,200 M,
with a capital gain, after tax, of about SEK 800 M.
     In October, the sale of Hagglunds Vehicle, with annual sales of
about SEK 1,400 M, and operations in the military special-purpose
vehicles area, was concluded. The price was about SEK 975 M, with a
capital gain of about SEK 525 M.
     During the same month, more than 90% of the shares were sold in
the dehumidification company, Munters, which then became publicly
listed. Munters has annual sales of about SEK 2 billion. The sale
resulted in a capital gain of about SEK 1,300 M. Incentive's remaining
holding in Munters is 2.3 million shares. These can be sold after
April 21, 1998.
     In December, an agreement was reached to sell the hydraulics
company, Hagglunds Drives, with annual sales of about SEK 800 M. The
sale was concluded in January 1998 and involved proceeds of about SEK
360 M, and a capital gain of about SEK 175 M.
     Hagglunds Vehicle, Munters and Hagglunds Drives were
deconsolidated from Incentive's accounts effective October 1, 1997.

INVESTMENTS

     Group investments during the year amounted to SEK 1,258 M
(1,258).

FINANCIAL POSITION

     The strategic transformation of the Group during the period has
been substantial and has included sales of large shareholdings and the
acquisition of Vivra, the American dialysis clinic company. The
Group's financial position has accordingly undergone major changes.
Overall, Incentive's financial position was strengthened during the
period.
     Net debt (loan liabilities, less cash and marketable securities,
including other financial receivables) was reduced by approximately
SEK 3.1 billion. Net debt at the end of the period amounted to
approximately SEK 7.2 billion. The equity/assets ratio was 52%. The
adjusted equity/assets ratio at year-end, based on the market value of
the shareholding in ABB AB, was 59%.

PERSONNEL

     The number of employees in the Incentive Group increased by 922
during the period. The total number at the end of the period was
18,176.

PARENT COMPANY

     Earnings after financial items amounted to SEK 5,604 M (3,143).
The increase compared with the preceding year is attributable to
capital gains from the divestment of companies. Liquid funds at
year-end amounted to SEK 377 M (9).


           INCENTIVE TO BECOME A MEDICAL TECHNOLOGY COMPANY

     Through Gambro, Incentive has today a clear and dominant focus on
medical technology. Following the divestment of TAC (February 1998),
Gambro accounts for (based pro forma on 1997 financial statements) 80%
of sales and 97% of operating earnings. There is also the intention to
divest MacGREGOR, whose operations within shipboard cargo handling,
places it outside the core area, medical technology. Incentive will
then have become a focused medical technology company.

INCENTIVE CHANGES ITS NAME TO GAMBRO

     Incentive will thereby have undergone a complete transformation.
With 1991 as the starting point, the Group encompassed some 50
operations within consumer goods, trading, engineering and defense
products, and the power industry, as well as some major shareholdings.
From having been a dispersed conglomerate, the Group has developed
into a focused, globally leading medical technology company.
     Incentive's operations will thereby coincide with Gambro's.
Pursuant to this, the Board has decided to propose to the Annual
General Meeting that Incentive change its name to Gambro effective
July 1, 1998.

SHAREHOLDING IN ABB AB

     Incentive's shareholding in ABB AB represents a considerable
value and contributes to the Company's financial strength. At the same
time it constitutes an asset that is alien to a focused medical
technology company. Therefore, Incentive intends to review its ABB AB
shareholding pursuant to reaching a definitive decision when the tax
implications are clarified.

GOODWILL

     The consequence of the restructuring measures described above and
measures implemented earlier is that Incentive's shareholders become
direct owners of a streamlined, growing and financially strong medical
technology company - Gambro. Alternatively, this could have been
implemented through a spin-off (distribution) of Gambro to Incentive's
shareholders. The result of such a distribution would have been that
the goodwill arising from Incentive's acquisition of Gambro, about SEK
10 billion, would have been charged against Incentive's shareholders'
equity. The proposed, combined plans for streamlining to medical
technology - Gambro- will be given a comparable accounting treatment,
analogous with a distribution. The streamlined Gambro will only carry
goodwill related to its own acquisitions, about SEK 14 billion, of
which most relates to the Vivra acquisition. This is in accordance
with the accepted practice of not applying so-called push-down
accounting.
     A distribution solution would result in a "rest Incentive" with a
highly disadvantageous structure, unsuitable for a market listing and,
in principle, consisting only of historical undertakings, and perhaps
resulting in adverse tax consequences. Furthermore, the keeping of a
"rest Incentive" would entail additional costs for the shareholders.
     Since Incentive's operations coincide with Gambro's, the legal
structures Gambro and Incentive will be integrated through a merger.
As a consequence, a merger loss arises corresponding to the difference
between the book value of Gambro and Gambro's visible shareholders'
equity. The merger loss will be reported in the consolidated accounts.
Approx. SEK 10 billion in goodwill will be charged against
shareholders' equity, which conforms with the accounting of a
distribution of operations as above.
     The actual charge of goodwill against shareholders' equity is
intended to take place effective July 1, 1998. This means that
goodwill amortization of about SEK 560 M annually will disappear. The
measure has no cash-flow effect nor any tax effect.

DIVIDEND POLICY

     Incentive has totally changed character through the
comprehensive, strategic transformation carried out since 1991.
Following some additional divestments, Incentive will become an
undiversified medical-technology group, characterized by growth,
strong market position and advanced expertise in the form of research
and development, products, systems and care. Incentive has developed
from having had the character of a diversified investment company with
an engineering emphasis, to a focused medical-technology growth
company.
     The Board has therefore reevaluated the dividend policy and
proposes that it be adapted to the Group's new focus, in which value
will, to a considerable extent, be created through growth.
Accordingly, value will increasingly be created through a larger
proportion of cash flow being reinvested in operations.
     Therefore, the aim is to adapt dividend size to the Group's
earnings trend, with consideration given to future growth.
     This new dividend policy will take effect beginning with the
present fiscal year, that is, beginning with the dividend to be paid
in 1999.

PROPOSED DIVIDEND

     The Board of Directors proposes a dividend of SEK 10:00 (10.00)
per share, to which SEK 684 M (684) is allocated.

SHARE SPLIT

     The Board of Directors has decided to propose to the Annual
General Meeting a 5:1 split of Incentive's A and B shares and thereby
reduce the nominal value per share from SEK 10 to SEK 2. The split
means that the shareholders receive five new shares for each old share
of the same type. Following the split, the total number of shares will
amount to 341,869,335 (250,574,090 Series A and 91,295,245 Series B).
The intention is to make the split on June 2, 1998.

ANNUAL GENERAL MEETING

     Incentive's Annual General Meeting will be held April 23, 1998 at
5.00 p.m., at the Royal Tennis Hall, Lidingovagen, Stockholm.
     The Board of Directors has proposed Tuesday, April 28, 1998 as
the record date. With this record date, dividends are expected to be
sent out from VPC on April 29, 1998.

AFTER THE CLOSE OF THE PERIOD

     In February 1998, divestment was made of the subsidiary TAC,
which is active in building automation and control systems, to
Scandinavian Equity Partners, SEP. The sales price was SEK 420 M, with
a capital gain of about SEK 200 M. TAC was deconsolidated from
Incentive's accounts effective January 1, 1998.

Mikael Lilius
President and Chief Executive Officer

     This report has not been subject to examination by the Company's
auditors.


For additional information, contact:
Bengt Modeer, Senior Vice President, Corporate Communications,
Incentive AB, tel [phone], or [phone]
Inger Larsson, Director of Corporate Communications, Gambro AB, tel
[phone]

Reports to be issued during 1998 are:
Interim Report, January-March: April 29
Interim Report, January-June: August 5
Interim Report, January-September: October 27
Annual Report for 1997 to be distributed March 31.
The President's Address to the Annual General Meeting will be
published April 23.
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INCENTIVE GROUP INCOME STATEMENT

SEK M                                             1997          1996

Revenues                                        19,490        20,220

Operating expenses (a)                         -18,304       -18,740

Items affecting comparability                   12,949         2,570

Operating earnings                              14,135         4,050

Financial items, net (b)                          -245         1,178

Earnings after financial items                  13,890         5,228

Taxes                                           -2,342        -2,241

Minority interest                                  -28          -103

Net income                                      11,520         2,884


(a) Of which amortization, goodwill             -1,177          -640

    Of which depreciation, other assets           -699          -744

(b) Of which earnings in companies                 237           306
    divested during the year

    Of which earnings in associated               355(c)       1,786
    companies (c)(Jan-March 1997)

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QUARTERLY DATA PER BUSINESS AREA
Group structure December 31, 1997


                                            1997

SEK M                          Q 1    Q 2   Q 3   Q 4  Total


MEDICAL TECHNOLOGY

Revenues                     2,904  3,437 4,214 4,478 15,033

Operating earnings
- before depr, (EBITDA)        532    694   837   881  2,944

Operating margin %            18.3   20.2  19.9  19.7   19.6

Operating earnings
- after depr. (EBIT)           345    431   453   492  1.721

Operating margin %            11.9   12.5  10.7  11.0   11.4


ENVIRONMENT

Revenues                       133    187   177   276    773

Operating earnings
- before depr. (EBITDA)          2      5     9    35     51

Operating margin %             1.5    2.7   5.1  12.7    6.6

Operating earnings
- after depr. (EBIT)            -3      0     4    30     31

Operating margin %            -2.3      0   2.3  10.9    4.0

MATERIALS HANDLING

Revenues                       569  1,044   848 1,130  3,591

Operating earnings
- before depr, (EBITDA)          0     61     5    37    103

Operating margin %               0    5.8   0.6   3.3    2.9

Operating earnings
- after depr, (EBIT)           -11     49    -6    28     60

Operating margin %            -1.9    4.7  -0.7   2.5    1.7

TOTAL BUSINESS AREAS

Revenues                     3,606  4,668 5,239 5,884 19,397

Operating earnings
- before depr, (EBITDA)        534    760   851   953  3,098

Operating margin %            14.8   16.3  16.2  16.2   16.0

Operating earnings
- after depr, (EBIT)           331    480   451   550  1,812

Operating margin %             9.2   10.3   8.6   9.3    9.3
-0-

                                          1996

SEK M                          Q 1    Q 2   Q 3   Q 4   Total


MEDICAL TECHNOLOGY


Revenues                     2,616  2,764  2,652 2,932  10,964

Operating earnings
- before depr, (EBITDA)      494(a) 559(a) 515(a) 581(a) 2,149

Operating margin %          18.9   20.2   19.4    19.8    19.6

Operating earnings
- after depr. (EBIT)         327    382    370     411   1.490

Operating margin %          12.5   13.8   14.0    14.0    13.6

ENVIRONMENT

Revenues                     145    151    154     264     714

Operating earnings
- before depr. (EBITDA)        1     10     12      30      53

Operating margin %           0.7    6.6    7.8    11.4     7.4

Operating earnings
- after depr. (EBIT)          -4      1     12      25      34

Operating margin %          -2.8    0.7    7.8     9.5     4.8


MATERIALS HANDLING

Revenues                     523    927    733   1,354   3,537

Operating earnings
- before depr, (EBITDA)       -4     49     13     102     160

Operating margin %          -0.8    5.3    1.8     7.5     4.5

Operating earnings
- after depr, (EBIT)         -15     39      4      93     121

Operating margin %          -2.9    4.2    0.5     6.9     3.4


TOTAL BUSINESS AREAS

Revenues                   3,284  3,842  3,539   4,550  15,215

Operating earnings
- before depr, (EBITDA)      491    618    540     713   2,362

Operating margin %          15.0   16.1   15.3    15.7    15.5

Operating earnings
- after depr, (EBIT)         308    422    386     529   1,645

Operating margin %           9.4   11.0   10.9    11.6    10.8


(a) Adjusted to uniform accounting principle.
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INCENTIVE GROUP BALANCE SHEET

SEK M                                     Dec 31, 1997   Dec 31, 1996

ASSETS

Fixed assets

Intangible assets                               25,570         13,538

Property, plant and equipment                    4,439          4,042

Shares and participations                        2,749          7,082

Long-term receivables                              334            474

Total fixed assets                              33,092         25,136

Current assets

Inventories                                      2,757          2,972

Trade receivables, etc,                         13,151          5,902

Liquid assets                                      881            686

Total current assets                            16,789          9,560

TOTAL ASSETS                                    49,881         34,696



SHAREHOLDERS' EQUITY AND LIABILITIES

Shareholders' equity (a)                        25,385         14,581

Minority interests                                  98             17

Accruals                                           698          1,183

Long-term liabilities                           10,064          5,346

Advances from customers                            408          1,241

Current liabilities                             13,228         12,328

TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES      49,881         34,696


(a) Total number of shares outstanding 68,373,867 (of which, Series
A: 50,114,818, Series B: 18,259,049)
-0-

SIX-YEAR SUMMARY

SEK M
Group                          1997   1996   1995   1994   1993   1992

INCOME STATEMENT

Revenues                     19,490 20,220 24,324 18,389 12,271 11,771

Operating earnings after
  depreciation               14,135  4,050  3,239  2,677    417    557

Operating earnings after
  financial items
    excl; associated companies 13,535 3,442 2,624  2,078    291    388
    incl; associated companies 13,890 5,228 4,653  3,832    966  1,216

Net income                   11,520  2,884  2,431  2,186    462    388

BALANCE SHEET

Total assets                 49,881 34,696 32,035 35,703 18,909 19,010

Net debt                      7,152 10,324  6,738 10,366  1,387  1,460

Shareholders' equity         25,385 14,581 12,246 10,976  9,922  9,500

CASH FLOW ANALYSIS

Cash flow from operations    13,351  3,901  1,596   -427    189    900

Investments in fixed assets  -1,258 -1,258 -1,550 -1,029   -533   -597

Change in net debt            3,172 -3,586  3,628 -8,979    -73 -1,752


KEY FIGURES

Profit per share, SEK (d)    168.49  42.18  35.55  31.97   6.75   5.65

Shareholders' equity per
  share, SEK (d)                371    213    179    161    145    139

Net asset value per share,
  SEK (b)                       505    349    289    253    253    193

Dividend per share, SEK      10.00(a) 10.00  9.00   8.00  7.00(c) 6.00

Total yield Incentive share, % 46.9   73.8   24.7   -5.2   50.0

Return on shareholders'
equity,% (d)                   57.6   21.5   20.8   21.0    4.8    4.2

Return on assets, %            35.3   19.1   18.1   18.7    7.5    8.7

Return on capital employed, %  44.5   24.8   21.4   21.8    9.7   11.8

Interest coverage ratio,
  multiple                     14.7    4.6    4.0    3.9    2.2    2.3

Solidity (equipty/assets
  ratio), %                      52     44     52     43     61     57


STATISTICAL DATA

Average number of employees  16,108 17,145 18,573 19,106 12,086 13,024

Wages, salaries and remuneration,
  incl social costs           5,364  5,423  6,145  5,982  3,662  3,583


a)  Proposed
b)  Shareholders' equity/share adjusted for surplus value in
    associated companies
c)  In addition, SEK 1;35/share in Orrefors subscription rights
d)  After full tax
-0-


DATES FOR FINANCIAL REPORTS, ETC. 1998

 April 9    Last day for temporary listing in VPC's register of
            shares, registered in the names of trustees, to be
            eligible for participation in the Annual General Meeting

 April 20   Last day to notify participation in the Annual General
            Meeting

 April 23   Annual General Meeting at 5.00 p.m. at the Royal Tennis
            Hall, Stockholm

 April 23   Last day for trading in the share, incl. dividend

 April 24   The share is listed, excl. right to dividend

 April 28   Record date at VPC for right to receive dividend

 April 29   Interim Report, January-March

 April 30   Payment of dividend from VPC

 June 2     Split of Incentive share

 August 5   Interim Report, January-June

 October 27 Interim Report, January-September

CONTACT: Soren Mellstig

Executive Vice President, Corporate Control

[phone]

or

Gambro AB

Inger Larsson, Director of Information

[phone].

or

Bengt Modeer

Senior Vice President, Corporate Communications

[phone]