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Per-Olov Norberg and Kanthal

The ongoing work in Kanthal with Per-Olov Norberg as Board Chairman is functioning very well.

Per-Olov Norberg possesses great industrial competence and in-depth knowledge of Kanthal's operations and markets. This know-how is valuable for Kanthal and Sandvik.

At the same time, it is important that the credibility of each Board member and senior representative of the Sandvik Group is generally respected among the employees, shareholders, customers and other interested parties.

In the public debate regarding the so-called Trustor affair, Per-Olov Norberg's role and actions have been questioned. In the situation which has arisen, only Per-Olov Norberg himself can clarify his actions in this respect. We have encouraged him to actively do so.

Pending the results of the ongoing investigations and clarification of the relevant facts regarding Per-Olov Norberg's role, Sandvik has no immediate plans to take any action.

Sandviken, 3 December 1997

Sandvik AB; (publ)