Investor AB: Interim Report, January - September 2001.

Business Editors

STOCKHOLM, Sweden--(BUSINESS WIRE)--Oct. 11, 2001

Investor AB

- Jan. 24 Year-End Report 2001

- April 16 Annual General Meeting

- April 16 Interim Report, January - March

- July 10 Interim Report, January - June

- Oct. 10 Interim Report, January




				

				
				 
				


 - September

-1,498 m.

- The total return on Investor shares was -25 percent during the

nine-month period, compared with 17 percent in the

corresponding period of 2000.

(a) During the year Investor eliminated its holding of own convertibles. Comparative figures have been adjusted in net asset value calculations to take this into account.

Investor's key figures
----------------------------------------------------------------------
                                  9/30 2001   12/31 2000    9/30 2000
----------------------------------------------------------------------
 Assets, SEK bn.                        114          154          168
 Net debt, SEK bn.                      -12          -10          -11
 Net asset value, SEK bn.               102          144          157
 Net asset value per share, SEK         133          188          204
----------------------------------------------------------------------
 Development         Jan.-         Jan.-        July-       July-
 during the          Sept. 2001    Sept. 2000   Sept. 2001  Sept. 2000
 period/quarter
----------------------------------------------------------------------
 Change in net
 asset value,
 SEK  bn.                   -42             7          -26          0

 Change in net
 asset value,
 percent                    -29             5          -18          0

 Income, SEK bn.              8            15           -1          1

 Total return, percent      -25            17          -27         13
----------------------------------------------------------------------

The interim report can also be accessed on the Internet at www.investorab.com

Investor AB is Sweden's largest listed industrial holding company with a total net asset value of approximately USD 10 billion (September 30, 2001). The company's business concept is to create shareholder value through long-term active ownership and investment activities. The average annual total return to shareholders has been in excess of 20 percent during the past 20 years. Investor is a leading shareholder in a number of public multinational companies, including Ericsson, AstraZeneca, Scania, ABB, Atlas Copco, WM-data, SEB, Gambro, Electrolux, OM and Saab AB. Investor is headquartered in Stockholm and has offices in Amsterdam, Hong Kong, London, New York and Palo Alto.

President's comments

Third-quarter economic and financial market activities have been overshadowed by the events of September 11 in the United States, which not only affected individuals and families, but will also have an impact on all of society and the global economy from a longer-term perspective. Although there were clear indications of a business slowdown beforehand, the economic outlook is now clouded with even greater uncertainty.

The decline on stock exchanges around the world has directly affected valuations of Investor's holdings. As a consequence, Investor's net asset value has decreased during the year, which is also reflected in our share price. As an active and committed owner, it is important for Investor to sharpen its focus on actively supporting companies, their managements, development and value creation, particularly in times of economic uncertainty. Investor's goal is to grow net asset value in excess of market cost of capital over a business cycle in order to deliver sustainable value for shareholders in the long term. Investor therefore stands behind portfolio companies during economic slumps and actively works to strengthen them in preparation for the next upturn.

AstraZeneca, Investor's largest holding in terms of value, has withstood the general market downturn, therefore its share of Investor's portfolio has increased further. The company's ambitious and long-term concentration on research and development is an asset and supports the opinion that AstraZeneca will continue to achieve sound results going forward. ABB, which has entered a transformation phase, has performed weakly for a period of time, although the company is working intensely on improving profitability and growth.

Saab has performed favorably on the stock market this year and is being increasingly recognized as a leading high-tech knowledge company in the aeronautics, aerospace and defense industries.

In September, the planned merger between SEB and Swedbank was aborted. The boards of both banks decided to terminate the merger process when they realized that the concessions required by the EU Commission would eliminate many of the merger's anticipated synergies, of which cost savings was one. As the largest single owner of SEB, Investor regrets that the merger process could not proceed but also supports SEB and its customer-driven, growth-oriented strategy for Northern Europe.

Ericsson, the 2G market leader that is championing the development of 3G systems and terminals, will have attractive growth and profit potential when the market accelerates. However, to achieve solid, long-term earnings growth, the company must complete its restructuring and cost-savings programs, and the world economy as a whole will have to resume growth. The formal establishment of Sony Ericsson Mobile Communications was an important step in Ericsson's transformation process.

In Investor's judgment, 3G has attractive return potentials, principally due to its higher transmission speeds and continuous connection which enable brand-new services and applications. 3G, which involves technological and commercial shifts, will emerge gradually.

In addition to today's voice and messaging services, 3G will add e-mail, on-demand services, radio, video and advertising, among other services. These new services will also put new demands on mobile terminals.

Hi3G, which now has one of the four UMTS licenses in Denmark in addition to one in Sweden, has strong potential to become a leading mobile operator, not only through its dedicated 3G strategy, but also through its participation in Hutchison Whampoa's international network of UMTS operators. By coordinating operations between the Swedish and Danish 3G markets, Hi3G will be able to offer cost-effective and innovative services. The company is working intensely to meet its ambitious business plan and time schedule. Rolling out the network, purchasing IT systems, and developing services and applications with other Hutchison 3G operators, are currently priority projects.

The prevailing climate in the capital markets, with reduced financing possibilities, lower valuations and fewer exit opportunities, has made conditions more difficult for young companies and for investors. Recently, activity in the venture capital marketplace has also decreased considerably and there is a risk that the trend will continue downward. In view of the present uncertainty, Investor has chosen to write down the book values of a number of portfolio companies that are expected to require additional financing within the next year.

Investor continues to believe in the longer term return potentials of the venture capital market but will continue to be selective about new commitments because of the current market uncertainty. However, an increased flow of attractive investment opportunities may lead to a higher rate of investment going forward. At the same time, Investor will also continue to work actively and consistently to provide support to existing portfolio companies that are judged to have attractive potential. Nonetheless, an investor must also be prepared to terminate projects that fail to develop.

Despite write-downs, new investments have had a positive impact on Investor's net asset value growth during the past few years. The New Investments business has grown Investor's net asset value by approximately SEK 1.4 billion since 1998. During this period the average annualized return on divested holdings has exceeded the return requirement of 20 percent.

It is pleasing to note that Investor's active portfolio management operations (securities trading) are continuing to report positive income, despite unstable financial markets.

In times of economic weakness, it is even more important to work in a focused manner to reach long-term goals. Investor is convinced that, long term, the company's business model will be successful and that the charted course is appropriate. Investor has a professional organization with a strong financial base and extensive network, which provide the prerequisites, as an active owner, to create long-term, sustainable values in companies. Historically, this has been proven to generate high returns for Investor shareholders.

Marcus Wallenberg

Investor shares

The total return (1) on Investor shares in the nine-month period ended September 30, 2001 was -25 percent (as compared to a 17-percent return in the corresponding period of last year). In the last 12-month period, the total return on Investor shares was -23 percent (44). In the third quarter, the total return was -27 percent (13).

During the past 20-year period, the average annual total return on Investor shares has been 23 percent.

The discount to net asset value was 24 percent at the end of the period, compared with 25 percent at year-end 2000.

Change in value

On September 30, 2001, Investor's net asset value amounted to SEK 102,018 m. (156,506). This corresponds to SEK 133 per share (204). At year-end 2000, Investor's net asset value amounted to On September 30, 2001, Investor's net asset value amounted to SEK 102,018 m. SEK 144,433 m. or SEK 188 per share.

(1) Total return is the sum of share price appreciation and reinvested dividends.

During the period the change in net asset value was -29 percent (5) or SEK -42,415 m. (7,148). See Appendix 1. The net asset value developed negatively in the third quarter, decreasing 18 percent or SEK 25,923 m.

Of the change in net asset value during the period, SEK -35,413 m. (8,501) was attributable to the core holdings and SEK -3,319 m. (1,707) to new investments. The corresponding figures for the third quarter were SEK -23,070 m. (1,442) for core holdings and SEK -1,842 m. (-293) for new investments. The change in value, together with net investments, add up to the net asset value shown in the following table.

Investor's net asset value
------------------------------------------------------------
                         9/30 2001          12/31 2000

                  SEK/share     SEK m.   SEK/share   SEK m.
------------------------------------------------------------
Core Holdings          124     94 951          171   130 844
New Investments         15     11 672           15    11 692
Other Holdings           6      4 630           12     9 409
Other Operations         3      2 156            3     2 601
Other assets and
liabilities              -        208            -        15
------------------------------------------------------------
Total assets           148    113 617           201  154 561
------------------------------------------------------------
Net debt               -15    -11 599           -13  -10 128
------------------------------------------------------------
Total net
 asset value           133    102 018           188  144 433
------------------------------------------------------------

Total assets per sector and business segment
----------------------------------------------------------------------
                                                          Engineering
                                                               &
SEK m.                         Technology   Healthcare   Manufacturing
----------------------------------------------------------------------
Core Holdings                      18 064       50 718       15 013
New Investments, listed             1 129          644           49
New Investments, unlisted           5 331        1 635          902
Other                                 120            -        2 941
----------------------------------------------------------------------
Total                              24 644       52 997       18 905
(%)                                 (22%)        (46%)        (16%)
----------------------------------------------------------------------

                               Financial
SEK m.                          Services        Other        Total
----------------------------------------------------------------------
Core Holdings                    11 156             -        94 951
New Investments, listed               -           124         1 946
New Investments, unlisted            49         1 809         9 726
Other                                 -         3 933         6 994
----------------------------------------------------------------------
Total                            11 205         5 866       113 617
(%)                               (10%)          (5%)        (100%)
----------------------------------------------------------------------

Core Holdings

In the first nine months of 2001, shares in core holdings were purchased for a total of SEK 15,081 m. (1,304). Shares were sold for a total of SEK 13,556 m. (13,838).

In the third quarter of 2001, there were no changes to Investor's ownership stakes in core holdings.

In June 2001, Investor increased its holding in Ericsson by 109,172,096 A shares and its holding in SEB by 64,568,615 A shares. Investor also divested its holdings in Stora Enso, SKF and SAS. The total value of the transaction (including a cash payment) was SEK 13,640 m. and Investor booked a capital gain of SEK 7,008 m.

In addition, purchases in the first quarter comprised 2,665,500 shares in AstraZeneca for SEK 1,143 m. and 1,350,000 shares in OM for SEK 298 m.

During the period the value trend(1) of core holdings affected Investor's net asset value by SEK -37,618 m. (6,580), of which Ericsson, ABB and SEB accounted for a substantial portion: SEK 21,887 m., SEK 9,514 m. and SEK 3,723 m.

The largest contribution to the change in value was from AstraZeneca with appreciation of SEK 1,917 m. Saab AB's share price increased the most.

(1) Value trend is the sum of realized gains and changes in surplus values (taking purchasing and sales proceeds into account).

In the past 12-month period, the value of core holdings has declined SEK 51,145 m.

For more information visit: ch.investorab.com

Net asset value, Core Holdings

                            Net                    Share
                            asset                  price
                            value      Market      perform-  Share of
                 Number of  SEK/       value       ance      Core
                 shares(1)  share(2)   SEK m.      2001(3)   Holdings
Company          9/30 2001  9/30 2001  9/30 2001   (%)       (%)
----------------------------------------------------------------------
Technology
Ericsson        382 678 896     20     15 079       -64           16
Saab AB5)        21 611 925      3      1 967       +17            2
WM-data          55 302 500      1      1 018       -59            1
----------------------------------------------------------------------
                                       18 064                     19
Engineering &
Manufacturing
ABB              57 750 880      6      4 476       -68            5
Atlas Copco      31 454 971      8      5 851       -10            6
Scania           18 170 073      3      2 509       -34            3
Electrolux       19 613 190      3      2 177        -9            2
SKF                       -      -          -         -            -
----------------------------------------------------------------------
                                       15 013                     16
Healthcare
AstraZeneca      95 085 810     61     46 497        +4           49
Gambro           68 638 225      5      4 221        -9            4
----------------------------------------------------------------------
                                       50 718                     53
Financial
Services
SEB             135 372 295     13     10 085       -28           11
OM               14 190 507      1      1 071       -68            1
----------------------------------------------------------------------
                                       11 156                     12
Forest Products
Stora Enso                -      -          -         -            -
----------------------------------------------------------------------

Service
SAS Sverige               -      -          -         -            -
----------------------------------------------------------------------

----------------------------------------------------------------------
Total                          124     94 951                    100
----------------------------------------------------------------------



                                 Share

                     Share       of         Net asset     Market
                     of          voting     value         value
                     capital(4)  rights(4)  SEK/share(2)  SEK m.
Company              (%)         (%)        12/31 2000    12/31 2000
--------------------------------------------------------------------

Technology

Ericsson                  5        39           39         29 771

Saab AB5)                20        36            2          1 686

WM-data                  14         7            3          2 505

----------------------------------------------------------------------
                                                           33 962

Engineering &

Manufacturing

ABB                       5         5           18         13 990

Atlas Copco              15        21            8          6 495

Scania                    9        15            5          3 749

Electrolux                6        24            3          2 380

SKF                       -         -            3          1 967

----------------------------------------------------------------------
                                                           28 581

Healthcare

AstraZeneca               5         5           57         43 437

Gambro                   20        26            6          4 702

----------------------------------------------------------------------
                                                           48 139

Financial

Services

SEB                      19        20           10          7 363

OM                       17        17            4          2 992

----------------------------------------------------------------------
                                                           10 355

Forest Products

Stora Enso                -         -           11          8 623

----------------------------------------------------------------------
                                                            8 623

Service

SAS Sverige               -         -            2          1 184

----------------------------------------------------------------------
                                                            1 184

----------------------------------------------------------------------
Total                                          171        130 844

----------------------------------------------------------------------


(1) Holdings, adjusted for any shares on loan.
(2) Calculated on the basis of 767.2 million Investor shares.
(3) Most heavily traded class of share.
(4) After full dilution.
(5) Reclassified from Engineering & Manufacturing to Technology.

New Investments

The New Investments business includes the private equity investments in Investor Growth Capital, Investor Capital Partners - Asia Fund and EQT.

Net asset value, New Investments
--------------------------------------------------
                                           Book
                                Value      value
                     SEK/share  (SEK  m.) (SEK  m.)
-------------------  ---------  -------   --------
Investor Growth          11     8 180        7 058
Capital
Investor Capital
Partners - Asia
Fund(1)                   1     1 134        1 000
EQT                       3     2 358        2 283
-------------------
                      -----    ------       ------
Total                    15    11 672       10 341
-------------------   -----    ------       ------

(1) Includes all Investor Group investments in Asia.

A total of SEK 4,025 m. (7,059) was invested during the period, of which SEK 1,844 m. was in the third quarter. Shares were also sold for a total of SEK 1,024 m. (2,603), of which SEK 95 m. in the third quarter. Divestments during the period generated capital gains totaling SEK 74 m. (1,494), of which SEK -36 m. in the third quarter.

Due to sharp declines in stock prices in the public markets, valuations continued to fall in the venture capital market as well. Despite this background, a number of New Investments portfolio companies completed new financing rounds involving new investors. In all cases, valuations exceeded book values at the start of the period.

The downturn in investments in private equity markets continued in the third quarter. However, despite a decline of over 70 percent since last year, venture capital investment activity, from a historical perspective, is still at a relatively high level. Due to the downturn, many companies are highly uncertain about future financing possibilities. Investor has therefore made a conservative assessment of the valuations of companies requiring additional financing in the coming period. As a result of this evaluation, in combination with declining values in the market and the fact that some holdings have not developed as planned, write-downs were taken in the amount of SEK 1,518 m. (+57) net in the third quarter for a total of SEK 2,925 m. (+15) for the nine-month period.

The value of New Investments decreased SEK 3,160 m. (+1.631), of which SEK 1,791 m. in the third quarter.

Investor's initiatives in the New Investments business are long-term in nature and must therefore be valued over a longer period of time. The investment horizon for these investments is generally three to five years and the final outcome of the investments is not seen until the holdings are sold. Holdings that have been divested during the past few years have had an annualized return in excess of the return requirement of 20 percent.

During the period January 1, 1998 up to September 30, 2001, the New Investments business has grown net asset value by SEK 1,380 m.

New Investments - 10 largest listed companies
----------------------------------------------------
            Sector                  Market   Market
                   Owner-    Share  value(1)  value(1)
Company              ship    price    (SEK     (SEK
                      (%)     per-      m.)      m.)
                          formance
                              2001    9/30    12/31
                               (%)    2001     2000
----------------------------------------------------
imGO            IT   26.0      -37     370      522
Edison
  Schools(2)    IT    4.4      -52     318      764
Axcan           HC    8.7        2     295      289
Sylvan
  Learning(2)   IT    2.5       55     205      382
ASM Pacific     IT    4.3      -18     165      189
Intuitive
  Surgical      HC    7.1      -27     151      184
Medtronic(2)    HC    0,1      -28     107      168
Lerado         OTH   11.2        9     105       86
Lycos Europe    IT    4.4      -80     104      391
Amkor           IT    0.6      -32     101      118
Other, listed           -        -     229      698
Other, unlisted         -        -  9  522    7 901
----------------------------------------------------
Total, New
  Investments                       11 672   11 692
----------------------------------------------------

    1)  After a discount of 10 or 20 percent, depending on the
        liquidity of the company's shares.

    2)  Part of the holding was sold during the year.

Investor Growth Capital

For more than a year, Investor Growth Capital has been restrictive about making additional new investments. However, the current level of valuations is beginning to offer attractive, reasonably priced opportunities.

In the third quarter, an investment was made in Princeton Optronics, an innovator in active components, such as tunable lasers, for fiber-optic networks. An investment was also made in NTRU Cryptosystems, a provider of high-performance security solutions for digital consumer devices.

In the present market environment, it is pleasing to note that several portfolio companies, including Affibody and Bredbandsbolaget (B2), closed financing rounds involving new investors. Add-on investments were also made in companies such as Aerocrine, Kyphon, Popwire, Quisic and Umetrics.

    Contribution by New Investments to growth in net asset value, 1998
- September 2001
----------------------------------------------------------------------
SEK m.                      1998   1999    2000     Jan. -      Total
                                                    Sept.      1998 -
                                                    2001       9 mos.
                                                                 2001
----------------------------------------------------------------------
Capital gains, net  (incl.   709  2 399   3 004      148        6 260
  dividends)

Write-downs, net            -344     14  -1 288   -2 925       -4 483

Operating costs             -210   -249    -325     -233       -1 017
----------------------------------------------------------------------
----------------------------------------------------------------------
Operating income             155  2 164   1 451   -3 010          760
----------------------------------------------------------------------
----------------------------------------------------------------------
Change in surplus value    1 162    722    -955     -309          620
----------------------------------------------------------------------
----------------------------------------------------------------------
Contribution to net asset  1 317  2 886     496   -3 319        1 380
value
----------------------------------------------------------------------

In addition, Lycos Europe received additional capital in accordance with the Spray Networks sale agreement.

In the third quarter, certain fund-related holdings were sold.

For more information visit: igc.investorab.com

Investor Capital Partners - Asia Fund

Investor Capital Partners - Asia Fund made no new investments during the period.

ImGO, the Hong Kong-based venture capital company in which Investor has direct and indirect ownership interests through the Asia Fund, made an investment in NESS Display in the third quarter. The Korea-based company develops organic electroluminescent displays.

Effective November 1, 2001, Ms. Winnie Fok will take over as CEO of Investor Asia Limited, the adviser to Investor Capital Partners - Asia Fund. The fund has committed capital totaling USD 322 m., of which USD 60 m. has been invested. Investor's capital commitments total USD 200 m.

For more information visit: icp.investorab.com

EQT

In the third quarter, EQT Northern Europe acquired 50 percent of the shares in Duni AB. Duni is now 100-percent-owned by EQT Northern Europe together with the EQT Scandinavia I fund.

EQT also reached an agreement to acquire the Norwegian-based Plantasjen Group. Plantasjen is the leading garden superstore chain in the Nordic region. The agreement is subject to normal regulatory approvals. EQT's previously announced acquisition of Electrolux's leisure appliances business was closed on July 31.

In the third quarter, EQT Scandinavia I signed an agreement to sell its entire holding in Struers Holding A/S.

Investor's commitments in EQT's five funds total approximately SEK 8,000 m. On September 30, 2001, Investor had invested a total of SEK 2,332 m. EQT's funds have total commitments of approximately SEK 30,000 m.

For more information visit: www.eqt.se

Investor Growth Capital is wholly owned by Investor and focuses on direct investments in young high-growth companies in an expansion phase. The focus is on European and U.S. companies in the information technology and healthcare sectors. Investor Growth Capital has offices in Stockholm, New York, Palo Alto and Amsterdam.

Investor Capital Partners - Asia Fund is a private equity fund with a focus on buyouts and growth investments in Asia, excluding Japan and India. The investment adviser is Investor's wholly owned subsidiary Investor Asia Limited.

EQT takes control positions in medium-sized companies that are normally unlisted and have a high return potential through various forms of restructuring. EQT is operated in the form of a number of LBO(1) funds with capital from Investor and external investors. Investor is the principal owner of the investment adviser EQT Partners AB.

(1) Leveraged buyout

Other Holdings

Saab Automobile

In the first quarter of 2001, General Motors made the agreed payment of SEK 4,050 m. to acquire Investor's subordinated loan to Saab Automobile. Investor booked a capital gain of SEK 1,160 m. on the transaction.

Volvo

In the first quarter of 2001, 3,000,000 shares in Volvo were sold for SEK 562 m.

Hi3G

On September 20, 2001, Hi3G was awarded one of the four UMTS licenses in Denmark. This will enable Hi3G to benefit from considerable synergies in service development, marketing and other areas between the Swedish and Danish markets. In order to build and operate a cost-efficient UMTS network in Denmark, Hi3G is looking into options to cooperate with other companies. To develop IT platforms and applications on a global basis, Hi3G collaborates with Hutchison 3G operators in Australia, Austria, Hong Kong, Italy and the U.K.

Hi3G and Europolitan Vodafone have formed a joint venture company (3G Infrastructure Services) to build UMTS infrastructure in Sweden, which will reduce costs. 3G Infrastructure Services has also signed a letter of intent to discuss possible cooperation with Orange Sweden.

Hi3G's financing needs, of which a substantial portion is expected to be debt financing, will gradually increase. As of September 30, 2001, Investor had provided SEK 120 m. to Hi3G in capitalization.

For more information visit: www.hi3Gaccess.se

Other Operations

Securities trading

Investor's securities trading recorded a gain of SEK 1,167 m. (429) in the first nine months of the year.

Grand Hotel Holdings

Income after financial items was SEK 50 m. (48) for the period.

For more information visit: www.grandhotel.se

Consolidated results

Investor's income after financial items, excluding unrealized increases in value, amounted to SEK 8,131 m. (15,047). Income for the period (after tax) was SEK 7,673 m. (14,783). The result (after tax) in the third quarter was SEK -1,498 m. (890).

Income for the period includes a capital gain of SEK 7,008 m. on the sale of shares in Stora Enso, SKF and SAS.

A more detailed description of operations is provided as a table in Appendix 1.

Consolidated net debt

Consolidated net debt at the end of the period was SEK 11,599 m., as against SEK 10,128 m. at year-end 2000. Net debt thus increased SEK 1,471 m. in the first nine months. Investor's net debt thereby amounted to 10 percent of total assets, compared with 7 percent at year-end 2000.

Share capital

Investor AB's convertible debenture loans from 1991 and 1992 matured on June 21, 2001. The share capital on September 30, 2001 amounted to SEK 4,795 m., compared with SEK 4,782 m. on December 31, 2000.

Structure of share capital
---------------------------------------------------------
Class of         Number of     Number     % of     % of
share               shares     of votes  capital   votes
---------------------------------------------------------
A 1 vote       311 690 844  311 690 844    40.6    87.2

B 1/10 vote    455 484 186   45 548 418    59.4    12.8
---------------------------------------------------------
Total          767 175 030  357 239 262   100.0   100.0
---------------------------------------------------------

Accounting principles

This interim report has been prepared in accordance with Sweden's Annual Accounts Act and the recommendations of the Swedish Financial Accounting Standards Council. It should be noted, however, that the net asset value per share is stated instead of income per share, since it reflects the development of Investor as an industrial holding company in a more relevant way.

Holdings in associated companies are reported in accordance with the acquisition value method. The consolidated accounts in accordance with the equity method (income statement, balance sheet and specification of equity) will be prepared and made available on Investor's web site as of November 30, 2001.

As of the third quarter, exchange rate effects related to monetary inter-company balances are reported net against translation differences in shareholders' equity. Equity and net financial items have been adjusted with an amount totaling SEK 194 m. from earlier periods in 2001.

Valuation principles for New Investments

The valuation of listed holdings is based on the share price of each company on the last business day of the reporting period, less 10 or 20 percent, depending on the liquidity of the company's share.

For unlisted holdings, Investor uses a conservative valuation method, in which the holdings are valued at acquisition cost, less any write-downs. The valuation, and if relevant, any need for write-downs, is determined quarterly on the basis of the market's development and the performance of each company in relation to its plan and budget.

Other

Financial Calendar 2002

- Jan. 24 Year-End Report 2001

- April 16 Annual General Meeting

- April 16 Interim Report, January - March

- July 10 Interim Report, January - June

- Oct. 10 Interim Report, January - September

Stockholm, October 11, 2001

Marcus Wallenberg

President and Chief Executive Officer

This interim report has not been subject to specific review by the Company's auditors.

For tabular information including graphs contact Taylor Rafferty (London) at +44 20 7936 0400.