Hexagon AB to purchase Articulated Arm CMM Manufacturer Romer CimCore Inc.

Hexagon's nearly simultaneous purchases of Romer CimCore Inc (USA) and Romer SA (France, announced July 16) reunites two articulated arm manufacturers separate since 1999, and positions Hexagon Metrology as strong player in the growing articulated arm segment of the metrology business. Arm CMMs are complementary to Hexagon's other metrology businesses.

North Kingstown, RI August 5, 2004 -- Hexagon AB has entered into a formal agreement to purchase the measuring equipment businesses of Romer CimCore Inc., Carlsbad California. The company is a manufacturer of portable articulated arm coordinate measurement machines. Company sales in 2003 were approximately $14 million, and the company has some 60 employees. Mr. Homer Eaton, company founder and seller, will remain as head of R&D at the Romer CimCore unit. Likewise, CEO Hank Kraus will also remain with Romer CimCore. Hexagon expects the acquisition, pending regulatory approval, will generate positive contribution to group earnings from the start.

Romer CimCore manufactures and markets advanced technology portable articulated arm coordinate measurement machines (CMMs) and specialized accessories such as laser scanning probe heads and the GridLOK measurement volume expansion system sold under the Romer brand in the United States, and the CimCore brand elsewhere in the world. Portable articulated arm 3D measurement systems have a variety of uses in the automotive, aerospace, and general industrial markets. They are particularly useful for applications such as large aerospace assemblies, where bringing the measuring device to the workpiece is more practical than bringing the workpiece to a measuring device.

In July, Hexagon announced the purchase of Romer SA (France). The two companies with the common name Romer also share a common history; they were a single unit from inception in 1986 until a split in 1999.     Hexagons purchase of both companies brings the name Romer and the two companies back under common ownership. The purchase of Romer CimCore is Hexagons second metrology related acquisition within a month, and the fifth in 2004. The acquisition of Romer CimCore and Romer SA positions Hexagon as a strong competitor to FARO Technologies Inc (NASDAQ: FARO) in the articulated arm CMM market.

Bill Gruber, president of Hexagon Metrology North America states The purchase of Romer CimCore along with Romer SA solidifies Hexagons position within the articulated arm market. Its an important and growing hardware segment, and a perfect complement to our bridge CMM lines. Plus, articulated arms are yet another example of the many metrology products that are supported by our common Enterprise Metrology Solution, PC-DMIS.
   
Homer Eaton of Romer CimCore Inc, notes As weve publicly stated, Romer CimCore has been searching for a partner with the resources to help us grow our business. Were very pleased to be part of the world-class Hexagon organization that has the resources and the vision to help us succeed.

Hexagon AB (Stockholmsbn: HEXA B) is a multinational engineering technology group with the long-term ambition of positioning itself as number one or number two within its strategic sectors. Annual sales exceed $1 billion. Hexagon AB is divided into four business areas: Automation, Engineering, Metrology and Polymers. Hexagon Metrology, with annual sales of over $300 million is the worlds leading supplier of coordinate measurement systems, and consists of metrology equipment companies Brown & Sharpe, Sheffield, DEA, Leitz, Tesa, Romer SA and CE Johansson, and metrology software developers Wilcox Associates and Mirai. More information about Hexagon may be found at www.hexagon.se.

Hexagon Metrology will be presenting its unified brand group in booth D-4303 at the International Manufacturing Technology Show (IMTS), September 8-15, 2004 at McCormick Place in Chicago.

More information about Hexagons presence at the show can be found at www.HexagonIMTS.com.

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