January 2000 Press Release


EXPANDA AB (Publ), 556541-2094

Lammhult's Acquisition of Gärsnäs is Now Being Completed

In a press release of December 17th 1999 we announced that Lammhults Möbel AB, a subsidiary of Expanda, and the owners of Gärsnäs Ab, also in the furniture trade, had signed a purpose declaration. Negotiations were opened with a view of enable for Lammhults' acquiring 100 % of Gärsnäs' stock.

The negotiations are now finished and Lammhults will take over Gärsnäs from January 1st 2000. The owner and Managing Director of Gärsnäs, Mr Leif H Hjärre, will leave his position of Managing Director. Lammhults' Managing Director, Mr Marcus Larsson, has been appointed the Managing Director of Gärsnäs.

The payment regarding the acquisition will be made in cash. The parties have agreed to that the purchase price will not be announced at this time.

Lammhults and Gärsnäs are two of the best-known, leading design furniture companies in Scandinavia. Lammhults has become associated with furniture of steel tubing and Gärsnäs with furniture of wood. Both of the companies have been working together with some of the leading designers in Scandinavia for many years and they have made deliveries of furniture to public environments all over the world.

Lammhults reached a turnover for 146 million Swedish crowns during 1999 and Gärsnäs 43 million.

Marcus Larsson, the Managing Director of Lammhults and Gärsnäs says: "The two companies complement each other perfectly as regards their marketing, their products and even their image. Together we will be able to offer the very best available Scandinavian design furniture. The affects on the results of the group during 2000 will be marginal, whilst the synergies available in all sections - product developement, marketing, production and purchasing, along with administration - in the long run will mean significant growth in turnover as well as profits."

Växjö, January 25th 2000
Jan Ove Forsell

Questions in this matter will be answered by the Managing Director of Expanda, Jan Ove Forsell, phone +46-470-727970, 070-5820828 or the Managing Director of Lammhults Marcus Larsson, phone +46-472-269500, 070-6067075.

The business concept of Expanda is to develop and be the long term owner of a group of companies mainly concentrated on articles of a distinct strain of design, strong trademarks and large export potential.
The share of Expanda is noted on the O-list at the Stock Exchange in Stockholm . The turnover of the group, proforma, is estimated to reach 625 million SEK for 1999 and profit before dispositions and taxes 60 million SEK.
The Expanda Design Group has set as its two year objective to be comprised of design companies reaching an annual turnover of at least 1 billion Swedish crowns.

Expanda AB
Klostergatan 2
SE-352 30 VÄXJÖ
Phone +46-470 72 79 70
Fax +46-470 72 79 79

Box 26, SE-360 30  LAMMHULT
Ph: +46 472 26 95 00, Fax: +46 472 26 05 70