Sapa will not acquire the Chinese extrusion company Kam Kiu Aluminium

Sapa will not acquire the Chinese extrusion company Kam Kiu Aluminium 

Reference is made to the press release by Sapa AB dated 5 February, 2008,
regarding the signing of a letter of intent to acquire the Chinese extrusion
company Kam Kiu Aluminium. Sapa has now called-off its attempt to acquire the
company. 

Sapa AB has performed due diligence on Kam Kiu Aluminium over a period of seven
months. This process has confirmed the strong capabilities of Kam Kiu, the
strategic rationale of the acquisition and the opportunities that it presents
for Sapa. In spite of this, unfortunately the parties involved have not
succeeded in agreeing upon the terms required to complete the transaction.

“It is unfortunate that we are not able to complete the acquisition of Kam Kiu
at this time as we intended. Sapa AB will, however, continue its aggressive
growth plans in China, in particular within fabricated products. Over the last
few months there has been extensive communication between the Kam Kiu and Sapa
organisations, and a number of business opportunities in China have been
identified. Kam Kiu and Sapa now intend to develop these opportunities jointly,
drawing upon the strengths of both companies”, says Ole Enger, President and CEO
of Sapa AB.

For further information please contact Marius Grönningsaeter, Senior Vice
President Corporate Business, telephone: +46-8-459 59 32.



Sapa is an international industrial group, which develops and markets
value-added aluminium profiles, profile-based components and systems, and heat
exchanger strip in aluminium. Sapa has a turnover of approximately 35 billion
SEK, with 15,000 employees all over Europe and in USA and China. Sapa is one of
Europe's leading companies within its field and the customers are found in the
transport, building, engineering and telecom industries. Sapa is part of
Norwegian Orkla, listed on the Oslo Exchange.

Further information about Sapa can be found on our web site www.sapagroup.com