Cardo Annual General Meeting

The president's address

Cardo's president and CEO Kjell Svensson devoted most of his speech

at the annual general meeting to Cardo's future and the focus on

increased growth that today characterizes the group's operations.

"Our greatest challenge and main ambition is to increase Cardo's rate

of growth. Since our introduction to the stock exchange in 1995, our

annual sales growth has stood at 11 percent after adjustment for the

effects of exchange rate movements. A good figure, but our growth

rate in recent years has been lower than the average. This is

something that we are going to change."

Cardo's growth target is an annual profitable sales growth of 15

percent. Approximately half is to come from acquisitions and the

remainder is to be organic. The group is gradually increasing its

activities in the aftermarket, where Cardo has its greatest potential

for growth.

"What our products have in common is the very fact that our

aftermarket share is considerable, both when its comes to spares and

to service. Service also generates continuous contact with the

customer, which in turn leads to increased sales of new products."

At Pump, service is being expanded by means of measures such as the

establishment of local service centers and the acquisition of small

service workshops. During the past year, this has occurred in

Germany, the Republic of Ireland, Spain, Sweden and Finland, among

other countries. More than half of Pump's turnover relates to

products for water and wastewater, and this area is attracting great

interest, not least when it comes to the aftermarket.

"The privatization of municipal and state-owned treatment works is

leading to service and maintenance being contracted out to external

suppliers to an ever increasing extent. This is generating greater

growth potential for Pump, which today operates in about a hundred

countries worldwide and is one of the leading suppliers of pumps and

mixers for water supply and wastewater treatment."

Kjell Svensson summarized developments in 2000 as being thoroughly

satisfactory. For the group as a whole, improvements were reported at

all levels of earnings.

"When it comes to market prospects for the near future, we can see

that both the USA and Europe are going to experience a slowdown. For

Cardo's part, I am convinced that we will be capable of showing

greater growth this year than that of the underlying market thanks to

the efforts we have made.

Malmö, Sweden, April 2 2001

Cardo AB (publ)

Cardo is an international engineering group with a turnover of

approximately SEK 9.8 billion in 2000. Cardo holds a strong position

in the markets for doors, pumps and rail-vehicle brake systems. Cardo

has subsidiaries in about 30 countries with the focal point resting

in western Europe, and roughly 8,000 employees.