Extraordinary General Meeting in Sandvik AB

The redemption price per share is SEK 197.16. The total amount to be paid to the shareholders as a result of the redemption will amount to SEK 3,999,999,824. Payment is estimated to be effected on 26 June 1997. As a result of the redemption the share capital will be reduced by SEK 101,440,450.

If the reduction of the share capital is restored payment to the shareholders will be facilitated. As a consequence hereof, the General Meeting resolved to restore the share capital by a bonus issue in a total amount of SEK 258,696,000 by increasing the nominal value of each share from SEK 5 to SEK 6. In addition, the new issue of 507,710 series A shares each with a nominal value of SEK 5, which previously has been decided by the Board of Directors in accordance with the authorization of the Annual General Meeting held on 6 May 1997, increased the share capital with SEK 2,538,550. Sandvik's share capital has, as a result of the new issue and bonus issue, been more than restored.

Following the reduction of the share capital and the capital restoration, as a result of the new issue and the bonus issue, Sandvik's share capital amounts to SEK 1,552,176,000 divided on 189,450,259 series A shares and 69,245,741 series B shares.

Sandviken, 9 June 1997

SANDVIK AB; (publ)
Board of Directors