Atlas Copco restructures assembly of pneumatic tools

Atlas Copco restructures assembly of pneumatic tools

Stockholm, Sweden, September 28, 2007: Atlas Copco has decided to establish a
factory for assembly of pneumatic power tools in Hungary. Designed to strengthen
the long-term competitiveness of its Industrial Technique business area, the
step includes a proposal to transfer assembly from Hemel Hempstead, Great
Britain.

“This is part of our strategy to increase sourcing from Eastern Europe and
Asia,” says Fredrik Möller, Business Area President, Atlas Copco Industrial
Technique. “By establishing production in Hungary, we are lowering our cost base
and safeguarding our future growth prospects.”

The factory, located close to Budapest, will become fully operational during the
first quarter of 2008. A consultation process will be initiated in Hemel
Hempstead, where Atlas Copco primarily produces pneumatic tools for the
automotive and general industry under the CP Desoutter brands. The measures are
expected to affect approximately 85 employees. The factory currently employs
almost 200 people. Costs related to the proposed move amount to slightly less
than MSEK 50.

“We regret the unfortunate situation this change will represent for our
employees in Hemel Hempstead, and the company will take every reasonable action
to assist those affected in achieving alternative employment either within or
outside the Atlas Copco Group,” Möller says. 

Great Britain is an important market for Atlas Copco and the changes will not
have any effect on the marketing, sales and service of CP Desoutter products.
Möller says: “This reorganization will give us the efficiencies of production
and administration to be able to operate in the market with a greater
competitive edge and to further develop the range and quality of products to the
benefit of our customers.”

For further information please contact:
Fredrik Möller, Business Area President Atlas Copco Industrial Technique
+46 (0)8 743 85 05 or +46 (0)70 555 9592
Daniel Frykholm, Media Relations Manager 
+46 (0)8 743 8060 or +46 (0)708 65 8060

Atlas Copco is a world leading provider of industrial productivity solutions.
The products and services range from compressed air and gas equipment,
generators, construction and mining equipment, industrial tools and assembly
systems, to related aftermarket and rental. In close cooperation with customers
and business partners, and with more than 130 years of experience, Atlas Copco
innovates for superior productivity. Headquartered in Stockholm, Sweden, the
Group's global reach spans more than 150 markets. In 2006, Atlas Copco had 25
900 employees and revenues of BSEK 51 (BEUR 5.6). Learn more at
www.atlascopco.com.

Atlas Copco's Industrial Technique business area develops, manufactures and
markets industrial power tools, assembly systems, aftermarket products, software
and service. It innovates for superior productivity for applications in the
automotive and aerospace industry, general industrial manufacturing and
maintenance, and vehicle service worldwide. Principal product development and
main manufacturing units are in Sweden, Great Britain, France. More information
is available on www.atlascopco.com.