PRESS RELEASE

Hydrauto lands major order in Italy

The Italian company Fiat-Hitachi has chosen Hydrauto as the principal supplier of cylinders for its loaders, with effect from 1999. The contract entails that Fiat-Hitachi will be shutting down its own manufacturing in Turin and will instead purchase customized cylinders from the Skellefteċ, Sweden–based company Hydrauto. The order is worth SEK 40 M per year.

Hydrauto has invested substantial resources in building up competence and production capacity for mobile hydraulic cylinders. As a result it is today a European market leader in the large and medium-sized cylinders segment.

Commenting on the order, Hydrauto's president, Olov Larsson, said:

"This is proof of our success in further advancing our positions in the market for mobile hydraulic cylinders. We did not win this order because we are the cheapest, but because we can deliver the right quality at the right time."

With the Fiat-Hitachi contract, Hydrauto now supplies the three largest manufacturers of construction cylinders in Europe: Volvo, JCB and Fiat-Hitachi. In addition, Hydrauto has a cooperation agreement dating back a couple of years with the Japanese company Kayaba, the world's largest manufacturer of cylinders.

For further information, please contact:

Olov Larsson, President, Hydrauto, tel. +46-910-848 00



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