Atlas Copco continues restructuring of pneumatic tools production

Atlas Copco continues restructuring of pneumatic tools production

Stockholm, Sweden, June 12, 2008: Desoutter Ltd., part of Atlas Copco Industrial
Technique, intends to transfer its manufacturing operations in Hemel Hempstead,
Great Britain, to other manufacturing units within the Group and to
sub-suppliers. The move is part of a process to strengthen the long-term cost
competitiveness of the business area.

The proposed plan is subject to consultation. The reorganization will lead to
the closure of the Hemel Hempstead factory, resulting in redundancies for
approximately 95 employees.

“Focusing our manufacturing operations to fewer locations will give us increased
efficiency of production and administration. This is an important step to be
able to operate in the market with a greater competitive edge, to the benefit of
our customers”, says Mats Rahmström, Business Area President of Atlas Copco
Industrial Technique. “We are now entering into full and detailed consultation
with our employees and will take every reasonable action to assist those
affected in achieving alternative employment either within or outside of the
Atlas Copco Group.”

The factory is producing components for pneumatic tools of the CP Desoutter
brand. The changes will not have any effect on the marketing, sales and service
of CP Desoutter products.

The transfer of the production from Hemel Hempstead is expected to be finalized
by the end of December, 2008. Costs related to the move are estimated to MSEK
36. The transfer follows the move of assembling of pneumatic power tools from
Hemel Hempstead to a new plant in Hungary, initiated late 2007.

For further information, please contact:
Love Liman, Media Relations
+46 (0)8 743 8060 or +46 (0)73 231 8060
Mats Rahmström, Business Area President, Industrial Technique
+46 (0)8 743 9350 or +46 (0)70 899 9350

Atlas Copco may be required to disclose the information provided herein pursuant
to the Securities Markets Act. 

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 135 years of experience, Atlas Copco innovates
for superior productivity. Headquartered in Stockholm, Sweden, the Group's
global reach spans more than 160 markets. In 2007, Atlas Copco had 
33 000 employees and revenues of BSEK 63 (BEUR 6.7). 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.