The largest envelope company in Europe established

Press Release
from
Bong Ljungdahl AB (publ)
October 18, 1999
The largest envelope company in Europe established
Bong Ljungdahl and Bauwens/R. Schmidt to be merged
Today Bong Ljungdahl AB and Mr. Michael Wolf Bauwens, the owner of the Wolf-
Bauwens/R. Schmidt Group (“Bauwens”), have agreed in principle to a merger between
the two Groups. The parties plan to effect the merger through an acquisition of Bauwens
by Bong. In forming the new Group, Mr. Wolf-Bauwens will receive a combination of
newly issued shares in Bong Ljungdahl and a payment in cash for his shares in Bauwens.
The merger between Bongs and Bauwens will create the largest producer of envelopes in
Europe with a yearly production of more than 16 billion envelopes and a turnover of
approximately SEK 2.5 billion. The new company will hold a European market
leadership position and a total market share of approximately 16% with a very strong
position in Northern Europe. The number of employees will be around 1800.
In the new constellation Mr. Wolf-Bauwens will be the largest shareholder in Bong and
is also to be nominated as member of the Board of Directors in Bong Ljungdahl.
The Board of Directors in Bong Ljungdahl has agreed in principle to the terms of the
merger and the main shareholders are positive to the transaction.
The merger is subject to conditions including a satisfactory due diligence, execution of a
Share Purchase Agreement, approval from the Shareholders in Bong regarding the
directed issue to Mr. Wolf-Bauwens and the approval of the relevant competition
authorities.
Bauwens is the second largest producer of envelopes in Europe, an all-rounder in the area
of mail-related products and has production facilities in Germany (3 units), Ireland, UK,
Finland and Belgium. Bauwens is the market leader in Germany and has a strong
presence in UK, Ireland, Belgium and Holland.

Bong, which is quoted on the Stockholm Stock Exchange OTC-list, is the fourth largest
producer of envelopes in Europe. Bong is well known as a high quality supplier of all
forms of standard and bespoke envelopes. Bong has a strong market presence in the
Nordic countries as well as in the Baltic States, Poland and Belgium. The production
facilities are located in Sweden (2 units), Norway, Denmark, Finland, Poland, Estonia
and Belgium.
Bong and Bauwens complement each other both geographic and product wise and the
overlaps are few. The new group constitutes an excellent platform for further growth in
the European envelope market.
The intention is to complete the merger early year 2000.
Alfred Berg Fondkommission AB and ABN Amro Corporate Finance (Deutschland)
GmbH have acted as advisors in connection with the merger.
Kristianstad, October 18, 1999
BONG LJUNGDAHL AB
Lennart Pihl
For enquires:
Lennart Pihl, CEO Bong Ljungdahl: +46-44-20 70 50 mobile 0705-94 68 66