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Report on the first quarter 2006

President's comment:

"Demand during the quarter remained strong. The business climate in Europe improved and remained stable at a high level in other markets. Operating profit rose by 40% to SEK 2,853 M and the margin was 16.3%. Invoicing amounted to SEK 17.5 billion and profit after financial items increased by 42% to SEK2.7 billion. We are continuing to develop our offering with new solutions for increased customer benefit. Combined with a continued global expansion, this increases our competitiveness and ensures growth as well as profitability," says Lars Pettersson, Sandvik's President and CEO.