HONG KONG - Techtronic Industries Co. Ltd. (TTI) announced that it has entered into a stock purchase agreement to acquire Atlas Copco AB's electric power tool and accessories business, currently conducted through Milwaukee Electric Tool Corporation and Atlas Copco Electric Tools GmbH and certain other entities under the brand names Milwaukee® and AEG®. The net cash consideration for the purchase is US $626.6 million on a debt-free basis.

The transaction, which is subject to regulatory clearances and customary closing conditions, is expected to close prior to the end of 2004.

Horst J. Pudwill, chairman and CEO of TTI, said, "We are pleased to add the Milwaukee and AEG brands of power tools and DreBo® carbide drill bits to our growing family of global brands. With their 80-year histories, Milwaukee is one of the most widely respected brands in the professional contractor market segment, and in Europe, AEG brings an additional highly respected brand to our portfolio. This acquisition takes advantage of our marketing and distribution networks and enhances our reach into the industrial/construction channel and power tool accessory market. The TTI Group is confident in our ability to continue generating strong double-digit returns for our shareholders."

Added Pudwill, "The TTI Group is particularly excited about the superb engineering and manufacturing expertise represented at Milwaukee and AEG. This acquired expertise will further enhance our global ability to expand our entire product portfolio and enables us to work with Milwaukee's strong dealer base in the U.S., an important distribution channel for the professional contractor. Additionally, Milwaukee, AEG, and DreBo complement our Ryobi® brand of consumer power tools and accessories."

For more information, visit www.ttigroup.com.

Publication date: 09/13/2004