Sandvik planning to outsource service operations

    Sandvik planning to outsource service operations

Sandvik has initiated an evaluation of the possibilities of having an
external cooperation partner carry out parts of the operations within
Sandvik Service.

The work assignments that are affected include building construction and
facilities management, payroll service, company healthcare, training and
market support. The remaining parts of the service company's operations
will be transferred to other units within Sandvik.

About 180 persons are affected by a possible outsourcing in Sandviken
and Stockholm. Sandvik is now initiating negotiations with various
conceivable cooperation partners.

"We believe that an external party that has service as its core
operations has better prospects over the long term of being an efficient
supplier of these specific services to the Group," says Sandvik
Executive Vice President Peter Larson.

Sandviken, 16 September 2003

Sandvik AB; (publ)

For additional information please contact Peter Larson, Executive Vice
President and CFO Sandvik AB, tel [phone].

Sandvik is a high-technology engineering group with advanced products
and world-leading positions in selected areas - tools for metalworking,
machinery and tools for rock excavation, stainless steel, special alloys
and resistance heating materials and process systems. The Group
has 37,000 employees in 130 countries, with annual sales of
approximately SEK 50,000 M.