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RNS Number:2544L
Perstorp AB
25 May 2000


Perstorp's Annual General Meeting

- Initiatives within chemical and flooring sectors continue
- The Board repeats its recommendation regarding Industri Kapital's
  offer
- The Meeting approved dividend of SEK 4.00 per share, authorization
  to repurchase Perstorp shares and re-election of the Board of Directors

At today's Annual General Meeting of Perstorp shareholders, President and Chief
Executive Officer Ake Fredriksson presented the Group's strategy for continued
growth in the chemical and flooring markets.  He also provided an account of
Perstorp's streamlining process, including the spin-off of Perbio Science in
1999 and the sale of Perstorp Surface Materials in 2000.

He also explained that the Company had undergone a comprehensive strategic
analysis conducted by the McKinsey consulting firm and a financial analysis by
the Morgan Stanley Dean Witter investment bank during the past year.

"The structural transformation of our sectors is moving ahead at a fast pace and
our operations must grow if they are to assert themselves in their markets. We
have implemented three strategic acquisitions to date during 2000.  To be
successful long term, we must continue to work actively on both acquisitions and
alliances," said Ake Fredriksson.

Chairman of the Board Urban Jansson repeated the recommendation that
shareholders accept Industri Kapital's offer to acquire all of the shares in the
Company:

"The Board considers that the offer represents an attractive opportunity for
Perstorp and its employees to participate actively in the creation of a leading
chemical company based in the Nordic Region, and to continue the development of
Pergo's flooring business.  In addition, the Board has concluded that the value
appreciation that Perstorp can generate in the foreseeable future is smaller
than that represented by the offer, due to the limited supply of capital in the
Company's current structure.

"Perstorp's chemical and flooring operations must grow sharply if they are to
satisfy demands from, primarily, customers and financial markets.  The stock
markets conservative valuation of Perstorp has made it difficult for the Group
to make the large acquisitions of companies that are necessary to create growth.
 This consideration, combined with the fact that the offer represents a
significant premium relative to the market price of the Company's shares before
speculation about a possible bid for Perstorp began, are the crucial factors
underlying the Board's positive view of the offer."

Representatives of Nordbanken's funds, SEB's funds and Skandia stated that they
had not as yet taken a position on the offer.  The opinion was that the
difference in price between the B and A shares was unfortunate, but that the
offer would facilitate an industrially correct solution.

One shareholder with 50,000 B shares directed a very intense challenge to the
shareholders to accept the offer and to the National Share Savers' Association
to reconsider their position in the criticism that holders of A shares are being
offered a premium of 12% compared with B shareholders.  He emphasized that
difference between the current offer and an alternative with a 10% premium for A
shareholders amounts to SEK 21 million, which must be weighed against the
several billions that shareholders together risk losing if the offer is not
implemented.

The representative for the National Share Savers' declined to comment on the
association's recommendation since he had not been involved in preparing it, but
inquired whether the Board had considered other alternatives.  Board Chairman
Urban Jansson in his answer referred to the extensive analyses commissioned by
the company.

The Meeting approved the proposed dividend of SEK 4.00 per share (preceding
year: SEK 3.00, adjusted to the calendar year).  The record date was set at May
30, 2000.  The dividend is expected to be distributed to shareholders by VPC AB
(the Swedish Securities Register Center) on June 5, 2000.

The Meeting also approved the Board of Directors' proposal that the Board be
authorized to repurchase and transfer Perstorp shares.  The National Share
Savers' Association opposed authorizing the Board to transfer repurchased
shares.

The Meeting re-elected all of the members of the Board, namely: Fredrik Arp,
Gunnar Brock, Ake Fredriksson, Christer Gardell, Urban Jansson, Finn Johnsson,
Karl Lennart Wendt and Wilhelm Wendt.  At the statutory Board meeting held
immediately after the Annual General Meeting, Urban Jansson was re-appointed
Chairman of the Perstorp AB Board.

Anders Scherman was re-elected and Jan Birgerson was newly elected as auditors
of the Company in conjunction with Stig Nilsson declining re-election.  Hans
Bjerke and Lars-Bertil Nilsson were elected new deputy auditors of the Company.



END

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