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Merger of Sandvik product areas Valenite and Safety

Valenite and Safety, major cutting-tool product areas within business area Sandvik Tooling, will merge into one organization.

Valenite and Safety will continue to exist as brands within the new product area.

The new organization will provide customers with a strengthened offer of cutting tools in cemented carbide, primarily for turning and milling components in the automotive, die & mold and mechanical engineering industries. The combination of each brand's product development, custom-made tool solutions and marketing support will improve growth opportunities considerably. Increased cooperation and synergies in combined supply and support functions will further increase efficiency of operations.

The current President of Valenite, Rod Drummond, will head the combined product area.

Sandviken, 22 March 2005

Sandvik AB; (publ)

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