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Sandvik Mining and Construction and Hagby-Asahi AB sign broad distribution agreement

Hagby-Asahi of Sweden and Sandvik Mining and Construction of Sweden have signed an agreement to further strengthen the position of both companies in the market for mineral exploration tools and equipment.

The cooperation between Hagby-Asahi and Sandvik Mining and Construction - both suppliers to the mining industry - will strengthen their ability to add real value for customers' business. Under the agreement, Sandvik Mining and Construction will become distributor of exploration drill rigs and coring tools from Hagby-Asahi in such main mining markets as Latin America, Africa, Australia as well as Russia and the former Soviet republics (CIS).

"The agreement with Sandvik Mining and Construction supports Hagby-Asahi's growth in the field of products for mineral exploration, a key growth market for us. Sandvik will add global reach for our products and will enable Hagby-Asahi to provide products on all key mineral exploration markets," says Jan Kallenbäck, President of Hagby-Asahi.

"Sandvik Mining and Construction started to distribute products from Hagby-Asahi in Russia five years ago with highly favorable results. This extended agreement with Hagby-Asahi enables Sandvik Mining and Construction to further expand our sphere of expertise and provides a more comprehensive offering for mineral exploration thereby improving our ability to support our customers in their total process," says Sandvik Mining and Construction President Lars Josefsson.

Sandviken, 19 September 2005

Sandvik AB; (publ)

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