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Atlas Copco Announces Formation Of Alliance Tools

2 December 1997

Atlas Copco Announces Formation Of Alliance Tools

        Chicago Pneumatic, Desoutter & Georges Renault To Integrate

    STOCKHOLM, Sweden, Dec. 2 -- To promote synergy among its
pneumatic power tool divisions and better enable sharing of their development
and production resources, Atlas Copco AB has formed a new division called
Alliance Tools, which incorporates Chicago Pneumatic, Desoutter and Georges
Renault.  The new division will be operational as of January 1, 1998.
    Alliance Tools will combine production, product development,
administration and management of the three companies, while keeping their
brand identities, sales and marketing, and distribution channels separate.
    "Today, three Atlas Copco companies took steps to create a foundation for
leadership through synergy and stronger brands," said Necip Soyak, the new
president of Alliance Tools and formerly president of Chicago Pneumatic.  "To
our customers, the faces of these companies -- and the products they make --
will not change. However, by combining and focusing our internal operations,
we will provide increased efficiency and innovation to our customers."
    Chicago Pneumatic, based in Rock Hill, South Carolina, USA, manufactures a
range of industrial pneumatic and automotive aftermarket tools, including
impact wrenches, hammers and compression tools.  Desoutter, in Hemel
Hempstead, United Kingdom, produces pneumatic power tools for light assembly
such as screwdrivers, drills and light nutrunners.  Georges Renault, in
Nantes, France, makes abrasive tools, heavy nutrunners and other tools for
broad industrial use and high-tech automotive assembly.

    Individual Brands to Remain Unchanged
    Chicago Pneumatic, Desoutter and Georges Renault will remain as
independent brands. They will be further strengthened through dedicated brand
management using specialized product marketing, sales and distribution
channels, all supported by the combined manufacturing, sourcing and product
development resources.
    Alliance Tools will assign specific production duties to each plant that
relate to its current primary focus. When the division's formation is
complete, production, sourcing and product development resources will be
organized into the following focused operations:

    * Impact wrenches, hammers and compression tools will be developed and
      manufactured in Rock Hill, South Carolina, USA
    * Screwdrivers, drills and light nutrunners will be designed and produced
      in Hemel Hempstead, UK
    * Abrasive tools, heavy nutrunners and assembly systems will be developed
      and made in Nantes, France

    Brand management and marketing for Chicago Pneumatic will be located in
Rock Hill. Georges Renault will handle these functions in Nantes, and
Desoutter will do so in Hemel Hempstead.
    Atlas Copco is an international industrial group of companies that
manufactures compressors, construction and mining equipment, power tools,
assembly systems and motion control products. The companies offer a broad
range of products and services to customers within the engineering,
automotive, process, building, construction and mining industries.
    Atlas Copco manufactures products at 56 plants in 15 countries. Most
manufacturing is done within Europe, particularly Belgium, Sweden and Germany.
Products are marketed through sales operations in 70 countries and through
distributors in another 80 countries. Founded in 1873 and headquartered in
Stockholm, Sweden, Atlas Copco companies currently employ more than 21,000
people.
    For more information, visit http://www.atlascopco.com.

SOURCE  Atlas Copco AB