Hydrauto: Hydrauto lands major order in Italy

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 Skellefteå, 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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