Bong strengthens European Leadership
Acquires Holland’s leading Envelope Group

Bong Ljungdahl AB has to-day signed a Letter of Intent to acquire the Stronghold Group, comprising the Van Stolk & Reese, Bramson, Koverto, Autoprint and Mekvale companies.

The Stronghold Group is the Dutch market leader and one of Europe’s largest envelope companies, with revenues of approx. 500 MSEK and some 350 employees. Stronghold has in addition to its strong presence in Holland also significant sales in the UK. The Mekvale company is one of England’s largest over-printers and based in London.

Stronghold complements the Bong Group exceptionally well and strengthens further Bong’s excellent market positions in the rest of Northern Europe, by filling the current Dutch gap and adding to our UK leadership. The acquisition indeed endorses Bong’s expansion strategy and secures continued strong growth.

After completion of the acquisition, Bong will have revenues of more than 3 billion SEK and some 2.300 employees.

The completion of the acquisition, which is expected to be finalized in March, is subject to conditions including a satisfactory due diligence, execution of a Share Purchase Agreement and Dutch legal and authority requirements. Stronghold is currently owned by a group of venture capital companies.

The acquisition will be paid in cash and initially financed via bank loans.

Bong is a fast-growing international envelope company. The Group has an annual turnover of some SKr 2.5 billion and around 1,900 employees. It has an annual production of 16 billion envelopes at factories in Sweden, Denmark, Norway, Finland, Germany, Great Britain, Ireland, Belgium, Poland and Estonia. In recent years, Bong has played an active part in the current process of restructuring in the European envelope industry and sees valuable potential for further expansion. Bong is a publicly quoted company and the share is traded on the Stockholm Stock Exchange Attract 40-list.

Kristianstad, Sweden, January 24, 2001

BONG LJUNGDAHL AB (publ.)

Lennart Pihl

CEO and MD

For further information, please call: Lennart Pihl, President and CEO

Telephone: +46 44 20 70 50 or Mobile: 070 – 594 68 66

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