FFE Minerals Acquires Materials Handling Business of RAHCO International

FFE Minerals, the minerals processing arm of FLSmidth, has acquired the
materials handling business of US based RAHCO International, Inc., a world
leader in the supply of mobile conveying solutions. 

The transaction, valued at approximately US$19.5 million, also includes RAHCO's
sales, design and service operation in Chile.  The company will, from the
effective date of 1 April 2007, trade under the name of FLSmidth RAHCO Inc. 

RAHCO designs, manufactures and services bulk handling systems for the mining,
aggregate and bulk solids industries, including mobile conveyors, radial
stackers, portable conveyors, fixed/overland conveyors and at-the-face mining
conveyors.  The at-the-face mining solutions supplied by RAHCO, ranging in
capacity from 200 - 10,000 tph and in lengths from 25 - 700 meters, represent
viable and economic alternatives to traditional mining methods. 

The acquisition of RAHCO combined with the recent acquisition of KOCH
Transporttechnik positions FFE Minerals as a global leader in material handling
solutions for the minerals industries, with the ability to offer large scale
energy efficient mobile crushing and conveying equipment used in mining
operations. 

The sales of RAHCO are expected to surpass US$20 million in 2007 and will have
a minimal effect on the FLSmidth Group's earnings in 2007, after consideration
of IAS purchase accounting impacts. 

"The expansion of the Minerals operation of FLSmidth has been identified as a
strategic objective for our company.  The acquisition of the materials handling
business of RAHCO is one more step along the way.  The combination of RAHCO, a
respected mobile conveying technology provider, with the FFE Minerals group,
presents opportunities to leverage the RAHCO technology through the worldwide
footprint of FFE Minerals including penetration into the growing oil sands
markets." says, Group CEO Jørgen Huno Rasmussen, FLSmidth. 

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Please address any questions regarding this announcement to Group Chief
Executive Officer Jørgen Huno Rasmussen, FLSmidth & Co. A/S at +45 36 18 18 00. 


Yours faithfully 

Torben Seemann Hansen
Corporate Public Relations