Following settlement with US authorities: Trelleborg reaches preliminary agreement regarding sale of operations in Metec

Following settlement with US authorities: Trelleborg reaches preliminary agreement regarding sale of operations in Metech The Trelleborg Group has reached a preliminary agreement regarding the sale of operations within its US metals-recovery company Metech International Inc. The South Africa-based investment company Viking, which is listed on the Johannesburg Stock Exchange, is the purchaser through its US subsidiary. Final negotiations regarding the sale are expected to be concluded during the second quarter of 2002. In conjunction with the agreement with Viking, Metech International Inc. has reached a settlement with the United states attorney, district of Connecticut regarding the fraudulent proceedings of the company's former management toward its customers and the company itself. In the settlement, Metech International Inc. pledges to repay funds totaling USD 12.1 M to the customers affected through a restitution pool. Furthermore, following the court's decision, the members of the former company management have been forced to pay a substantial sum to the restitution pool in addition to serving prison sentences of up to 2.5 years. The investigation by the authorities related to a period extending from the late 1980s through 1995. All of the accused members of the company's former management were sentenced during spring 2002. Metech's current management was appointed in 1996. Metech has assisted the authorities in their work since the investigation was started in 1995. The costs of USD 12.1 M in the settlement reached between Metech and the US Attorney´s Office are covered by earlier provisions, so there will be no additional impact on Trelleborg's consolidated earnings. After tax, the costs will total approximately USD 8.4 M. "The preliminary agreement reached with Viking regarding this divestment will enable us to release the capital tied up in Metech's operations in an acceptable manner," comments Trelleborg's Chief Executive Officer Fredrik Arp. "It is also gratifying that we have now been able to reach a settlement with the federal authorities. Metech's new management has changed the direction of the company's operations to ensure that no similarly fraudulent activities can be repeated and they have also kept customers appraised of the situation during the period of the investigation." For further information please contact Senior Vice President Mikael Byström, telephone: +46-410 670 37 (mobile: 0708-55 21 69) or the Trelleborg Corporate Communications Department, telephone: +46-410 670 00. Trelleborg is a global industrial group. Operations are based on spearhead competence within polymer materials and a high level of industrial know-how, combined with functional solutions and systems designed to meet the needs of our customers. The Trelleborg Group has annual sales of SEK 19 billion, with approximately 16,000 employees in 40 countries. Trelleborg consists of four business areas: Trelleborg Automotive, Trelleborg Wheel Systems, Trelleborg Engineered Systems and Trelleborg Building Systems. The Trelleborg share has been quoted on the A list of the Stockholm Exchange since 1964. ------------------------------------------------------------ This information was brought to you by Waymaker The following files are available for download: