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Merger of Sandvik Product Areas Valenite and Safety

SANDVIKEN, Sweden, March 22, 2005 (PRIMEZONE) -- Valenite and Safety, major cutting-tool product areas within business area Sandvik Tooling, will merge into one organization. Valenite and Safety will continue to exist as brands within the new product area.

The new organization will provide customers with a strengthened offer of cutting tools in cemented carbide, primarily for turning and milling components in the automotive, die & mold and mechanical engineering industries. The combination of each brand's product development, custom-made tool solutions and marketing support will improve growth opportunities considerably. Increased cooperation and synergies in combined supply and support functions will further increase efficiency of operations.

The current President of Valenite, Rod Drummond, will head the combined product area.

Sandviken, 22 March 2005

Sandvik AB; (publ)

For additional information, please contact Anders Thelin, President Sandvik Tooling, +46 26 26 63 84.

Sandvik is a high-technology engineering group with advanced products and world-leading positions in selected areas -- tools for metalworking, machinery and tools for rock excavation, stainless steel, special alloys, metallic and ceramic resistance materials as well as process systems and sorting systems. The Group has 38,000 employees in 130 countries, with annual sales of approximately SEK 55,000 M.

Sandvik Tooling is a business area within the Sandvik Group and the world-leading manufacturer of tools and tooling systems for metalworking as well as of blanks and components. Annual sales are about SEK 19,000 M with 15,000 employees. Approximately 5% of the turn-over is invested in R&D. Products are manufactured in cemented carbide, high-speed steel and other hard materials such as diamond and special ceramics. Well-established brands are Sandvik, Sandvik Coromant, Walter, Valenite, Dormer, Titex, Prototyp, Precision etc.

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CONTACT:  Sandvik Tooling
          Anders Thelin, President
          +46 26 26 63 84