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Volvo Car Components and Semcon Sign a Letter of Intent

7 March 2000

Volvo Car Components and Semcon Sign a Letter of Intent Concerning the Volvo Competence Centre Skovde

    STOCKHOLM--March 7, 2000--Volvo Car Components AB (VCCC) and Semcon AB have signed a letter of intent, which means that the parties will negotiate the possibility of Semcon taking over the Volvo Competence Centre Skovde (VKS). VKS runs a secondary school (the Volvo Gymnasium) and company-adapted competence development. VKS, which is part of VCCC's Motor Division, has 36 staff and a total turnover of around SEK 50 million. Negotiations are expected to be completed during April 2000.
    As a link in on-going work to focus on core activity and make it more efficient, VCCC has decided to seek different forms of ownership for VKS's continued activity.
    For Semcon this means an opportunity to further strengthen and develop its training activity with a gymnasium and an increased range of courses within company-adapted training. This is a link in Semcon's strategy of being able to offer industry all-round solutions.

-    "The fast-increasing extent of automation within industry, and
     more and more complex products is imposing greater and greater
     demands on the development of staff competence. Now we will be
     getting a further opportunity to negotiate a long-term
     partnership agreement which means that we can expand our
     needs-adapted courses, and strengthen our position as one of
     Sweden's leading suppliers of competence development," says
     Caroline Krensler, acting MD of Semcon Education AB.

-    "For VKS the merger with Semcon will mean that new strategic
     competence can be linked to business in the long term, and
     further strengthen VKS's specialist competence. Furthermore,
     Semcon can add new training concepts and methods, to allow
     expansion within new customer segments. This will strengthen
     VKS's position in the long term as a prosperous supplier of
     competence development and safeguard activity in Skovde," says
     Gunnel Nordsjo, Head of Volvo Competence Centre, Skovde.

    Semcon is one of Sweden's leading industrial consultancy companies. Turnover during 1999 amounted to SEK 863,5 million, and the current number of employees is currently above 1266. Semcon works within four business areas; Semcon Technology Management, Semcon e-Design, Semcon Industrial Design, Semcon Competence Development. Semcon AB (publ). is listed on the Stockholm Stock Exchange O-list.

For more information, please contact:

Bjorn Magnusson, Business Development, Semcon, Mobile: +46-705-125299; e-mail:bjorn.magnusson@semcon.se, or

Caroline Krensler, acting MD Semcon Education AB, Mobile: +46-708-952929, e-mail: caroline.krensler@semcon.se,

Lena Roos, responsible for information VCCC Skovde, Tel: +46-500-475222.

Please visit http://www.bit.se for further information

The following files are available for download: http://www.bit.se/bitonline/2000/03/07/20000307BIT00720/bit0001.doc http://www.bit.se/bitonline/2000/03/07/20000307BIT00720/bit0002.pdf