Sandvik acquires Trustor's shares in Kanthal and becomes majority shareholder

Following the acquisition, Sandvik's total holding in Kanthal amounts to 517,500 A shares, 9,813,377 B shares and 703,655 warrants that each entitle the holder to subscribe for one A share in Kanthal and 486,739 warrants that each entitle the holder to subscribe for one B share in Kanthal. The holding corresponds to 93% of the capital and 95% of the votes in Kanthal prior to the exercise of all outstanding warrants, and 93% of the capital and 97% of the votes after full exercise of all outstanding warrants in Kanthal.

Sandvik intends to purchase outstanding Kanthal-shares in the market for a price up to SEK 210 per share, which equals the price Sandvik paid for the B shares that were acquired from the institutions earlier this week and from Trustor today. Sandvik's intention is also to use its right to acquire the remaining outstanding shares in Kanthal through a compulsory acquisition procedure at a later stage.

Clas Åke Hedström, President and CEO of Sandvik, comments the acquisition:

- Kanthal is a world-leading company within its area of business, with technically advanced products and very competent employees. There are clear possibilities for cooperation and potential synergies between Sandvik and Kanthal.

- It is therefore very pleasing that Sandvik now has succeeded in this acquisition and that the uncertain ownership structure in Kanthal thereby is clarified. We can now with full effort work with the synergy issues, something which will strengthen both Sandvik's and Kanthal's position and increase the companies' potential for future expansion.

Sandviken, 13 June 1997

Sandvik AB; (publ)