August 2004 

Hexagon has acquired all outstanding shares in the American metrology company Romer Cimcore Inc. The acquisition, which is conditioned by the approval from relevant competition authorities, will be consolidated as of August 1 st 2004 and will generate a positive contribution to Hexagons earnings from the start.

The company’s main product is the”articulated arm” which is used to easure objects in three dimensions in a variety of industries. Romer Cimcore and, Hexagons recent acquisition, Romer S.A. were one company from inception in 1986 to a split in 1999. By re-merging the two companies under Hexagons helm a leading supplier of the technology is created. Romer Cimcores´ R&D and manufacturing is located in Carlsbad, California, U.S.A. The products are distributed via external distributors as well as via subsidiaries all over the world. Romer Cimcores´ sales turn over were 16 MUSD in 2003 and it has some 60 employees. The seller of the company, Mr Homer Eaton, will remain as responsible for the continued R&D efforts related to the articulated arms technology.

Hexagon will continue to operate Romer S.A. and Romer Cimcore Inc. according to today’s concept. Synergies will be accomplished by complementing today’s distribution channels with Hexagons channels which in turn should generate additional sales volumes. Furthermore; Hexagon will adapt its software, PCDMIS, to fit Romers products. By merging the two companies, Hexagon will create a strong R&D-organisation which in turn will result in a quicker product launch pace for portable measurement systems.

The acquisition will strengthen Hexagons presence in the articulated arms market. This will in turn lead to a strong presence in a rapidly growing segment of the metrology market. Hexagons resources in R&D will add a strong metrological know how to Romer S.A. and Romer Cimcore whilst Hexagons strong global sales- and service net work will sell and service Romer S.A.s´ and Romer Cimcores´ products. Romer S.A. and Romer Cimcore will strengthen the group in several specialty applications.