News Releases

Information about Joint Venture with Böwe Systec

Ljungby, Sweden (August 25, 2004) - The operations of Roll Systems and the Stralfors Lasermax division will merge. Böwe Systec International GmbH, the parent company of Roll Systems, and Strålfors AB have today signed a Letter of Intent aiming for a jointly controlled entity. Effective date will be as from September 30, 2004. The joint venture indicates the Stralfors long-term exit from the paper handling equipment industry.

The two entities complement each other well from a geographical perspective. The Lasermax Roll Systems joint venture will be a world leading supplier of high-speed paper handling, converting and monitoring systems for digital printers. The combined market strengths and joint engineering capabilities will allow faster delivery of new solutions to the market as well as greater penetration into existing and emerging markets. The total annual turnover will be about 45 million euros and the joint venture employs some 200 people. The joint venture will have its head office in Ljungby, Sweden.

Roll Systems, founded in 1987 and with location in Burlington, Massachusetts, is North America’s largest manufacturer of high-speed paper handling, converting and monitoring systems for digital printers. Its products are sold and serviced in over 50 countries. Roll Systems has an annual turnover amounting to 23 million euros and the company employs some 100 people.

The Stralfors Lasermax division within the Stralfors Group is as Roll Systems one of the world’s largest suppliers of high-speed paper handling, converting and monitoring systems for digital printers. The Lasermax division is operating globally with head office in Ljungby, Sweden and with subsidiaries in USA, Belgium, UK, and Singapore. Development and manufacturing is concentrated to Ljungby, Sweden. The annual turnover amounts to 22 million euros and the division employs close to 100 people.

This transaction is the first step in the long-term departure of Stralfors engagement in the paper handling equipment industry. The agreement between Böwe and Stralfors gives as from May 2007 Stralfors a right to sell its 50% stake to Böwe and Böwe a right to buy the Stralfors 50 % stake in the joint venture.