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August 22, 2008


BE Group acquires Ferram Steel in Czech

BE Group announced that it is acquiring Ferram Steel as to continue the strategy of growth in Central and Eastern Europe.

Ferram Steel is a subsidiary of Ferram as and concentrates on flat products. The company has sites in the eastern Czech Republic cities of Opava and Ostrava, where the head office is also located. Ferram Steel as recently invested in a sophisticated logistics facility in Ostrava, which is creating substantial opportunities for further business growth in the Czech Republic, Slovakia and southern Poland. The proximity to nearby steel producers will reduce both costs and the environmental impact of shipments.

BE Group in a statement said that “Ferram Steel as will make a positive contribution to growth and profit and generate cost and capital synergies combined with BE Group’s current Czech operations. Ferram Steel as reported sales of SEK 343 million and operating profit of SEK 15 million in 2007. With the acquisitions of Ferram Steel as and Czechprofil finalized earlier this year, BE Group has multiplied turnover in the Czech Republic tenfold to become one of the five largest distributors in the country, with sales of almost SEK 750 million.

Mr Hakan Jeppsson president and CEO of BE Group said that “BE Group is taking a significant step in the Czech Republic with the acquisition of Ferram Steel as to achieve the critical mass needed for profitable operations in the long term.”

Mr Jeppsson added that “Ferram Steel as is a strategic acquisition that strengthens our position not only in the Czech Republic but throughout Central Europe. The company enjoys a favorable geographical location, expansive logistics and a strong supplier network in Ukraine, all of which enhance the value proposition for BE Group as a whole. The acquisition is expected to make an immediate positive contribution to growth and profit and yield synergies including lower costs, improved inventory turnover and higher sales. Subject to approval by the Czech competition authorities, the transaction is expected to be finalized during the summer.”

BE Group AB is one of the leading trading and service companies within steel and other metals in Europe. The company has about 10,000 customers, primarily within the construction and engineering industries. The group provides service in the steel and aluminum sectors.