The Board's and auditor's statements

The nature and extent of the Company's operations appear from the Articles of Association and issued annual reports. Such nature and extent do not entail risks over and above those inherent in, or may reasonably be expected in the industry or are otherwise inherent in business operations. The Company's sensitivity to economic fluctuations is not different from that of other companies in the industry. For information on significant events we refer to the Report of the Directors.

The Company's financial position at 31 December 2006 appears from this annual report which shows a net debt/equity ratio of 0.6 (0.7). Such ratio is no different from what is frequently displayed in the industry. The proposed dividend distribution and the proposed reduction of the share capital for repayment to the shareholders do not infringe on investments deemed to be required. In addition, the Company's liquidity reserve at the end of the year in the form of unutilized credit facilities is about SEK 9 billion, which means that the Company should reasonably be able to meet unexpected events and temporary fluctuations in cash flows. The Company's financial position supports the assessment that the Company will be able to meet its obligations and continue its business for the foreseeable future.

In view of the above and based on what the Board is otherwise aware of, the proposed dividend distribution and the proposed reduction of the share capital for repayment to the shareholders is in the Board's opinion justified considering the requirements which the nature, extent and risks of the operations put on the size of the Company's and the Group's equity, and also taking into account the Company's and the Group's financing needs, liquidity and financial position.

Sandviken, 31 January 2007
Sandvik Aktiebolag (publ)
The Board of Directors

Auditor's statement regarding Sandvik AB (publ) pursuant to Chapter 20, Section 14 of the Swedish Companies Act

We have taken part of the Board of Directors' of Sandvik AB (publ) (556000-3468) proposal of a redemption procedure including reduction of the share capital for repayment to the shareholders and increase of the share capital by way of a bonus issue, and the therein enclosed report pursuant to Chapter 20, Section 13, fourth paragraph of the Swedish Companies Act. We have no objections against the report.

We find that the measures which the Board has proposed be taken to ensure that the company's restricted shareholders' equity and the share capital are not reduced are adapted to their purpose. We also find that the Board of Directors' assessment of the effects of these measures is correct.

Stockholm, 26 February 2007

KPMG Bohlins AB
Caj Nackstad
Authorised Public Accountant, Partner in Charge