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Sandvik increases ownership in Tampella of wire drawing mill in Brazil

Sandvik Invest AB, a wholly owned subsidiary of Sandvik AB, Sandviken, Sweden, has acquired an additional 20,150,173 shares in Oy Tampella Ab, Finland, corresponding to 15.1% of the total number of shares in Tampella.

Sandvik's holdings now total 55,150,173 shares, corresponding to 41.4 %. Through this acquisition, Sandvik implemented its declared plan of initially acquiring an ownership position in Tampella of approximately 40%.

Discussions are also being held with the management of Tampella regarding the transfer by Sandvik of its 25% holding in Tampella's subsidiary Tamrock to Tampella in an appropriate fashion.

Through its ownership in Tampella, Sandvik's aim is to secure and intensify the product development co-operation between Sandvik Rock Tools and Tamrock. As a result, improved overall technical solutions in the interplay between drilling rigs and drilling tools can be achieved. This integration will gain increased importance in pace with the changes in rock-excavation techniques.

In addition, the intent is to further develop and intensify work with joint marketing, distribution and service. This will significantly improve total customer service while substantial cost savings can be achieved for both Tampella and Sandvik Rock Tools. Accordingly, Sandvik's ownership in Tampella/Tamrock is of long-term and strategic importance.

Sandviken, 24 May 1996

Sandvik AB; (publ) Group Information