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SKF Acquires US Based Lubrication Systems Company Lincoln Industrial

· The acquisition of Lincoln Holdings Enterprises, Inc. (hereafter referred to as Lincoln Industrial) includes all Lincoln, Alemite and Reelcraft entities and brands

· Lincoln Industrial is a leading supplier of lubrication systems, tools and equipment, with a consistent record of strong financial performance

· Lincoln Industrial has around 2,000 employees and in 2010 the company is expected to generate sales approaching USD 400 million with an operating profit margin of around 24%

· Lincoln Industrial is highly complementary to SKF’s existing lubrication systems business with limited overlap when it comes to geographical sales coverage, technology and manufacturing footprint, in particular in North America and Asia

· In addition, Lincoln Industrial provides SKF with improved access to the lubrication tools and equipment aftermarket in North America

· SKF expects to achieve significant synergies from the combination through improved sales opportunities and greater efficiencies

· The transaction will be accretive and paid through existing cash and credit facilities upon closing

Tom Johnstone, President and CEO of SKF, commented:

“Lubrication systems is a very important business for SKF and also one of our technology platforms. Combined with our other platforms it enables us to help our customers reduce friction and energy consumption. SKF has been building its lubrication systems business over a number of years and our team has done a great job in developing this as an important part of the SKF Group. The acquisition of Lincoln Industrial combined with our existing business will significantly improve our ability to further support our customers with even better solutions and give us a better geographical coverage. We have been following the development of Lincoln Industrial over a number of years and I am very pleased that the Lincoln team will soon be joining the SKF Group.”

Description of Lincoln Industrial

Lincoln Industrial is a leader in the design, manufacture and supply of highly engineered lubrication systems, tools and equipment. The company is headquartered in St. Louis, Missouri, USA. For more than 100 years, the Lincoln Industrial brands, incorporating Lincoln, Alemite and Reelcraft have been closely associated with lubrication, and the company has remained at the forefront of innovation to meet the most demanding needs of its customers.

Lincoln Industrial’s three main product lines are automated lubrication systems, hose reels, and grease guns, with a focus on grease-based systems. Sales are mainly generated from automated lubrication systems and related products. Major end markets include industrial, energy, off-highway, mining, agriculture, and steel.

The company has a global footprint with around 50% of its sales generated in North America, 25% in Europe and 20% in Asia Pacific. The company has around 2,000 employees with manufacturing operations in the US, Asia and Europe. In 2010, Lincoln Industrial is expected to generate sales approaching USD 400 million with an operating profit margin of around 24%.

Bart A Aitken, President and CEO of Lincoln, commented:

“We are very pleased that SKF has acquired Lincoln Industrial and look forward to fully supporting the further development of the Group. Lincoln Industrial has developed very well over a number of years with very strong growth and financial performance. The combination of Lincoln Industrial with the current SKF lubrication systems business and customer base will provide significant growth and value creation opportunities.”

Background and rationale for acquisition

The acquisition of Lincoln Industrial is in line with SKF’s strategy and builds on a series of acquisitions made in the lubrication systems sector over the last six years. Lincoln Industrial is highly complementary to SKF’s existing lubrication systems business, with limited product and geographical overlap. The acquisition furthers SKF’s strategy including:

· improving the lubrication systems platform through Lincoln Industrial’s complementary product portfolio. Lubrication systems is a key area within the management of friction

· increasing the geographical sales coverage in North America and Asia

· expanding the business to the automotive aftermarket in the US

· expanding the manufacturing operations through Lincoln Industrial’s strong US and Asian manufacturing footprint.

Cautionary statement

This document contains forward-looking statements that are based on the current expectations of the management of SKF. Although management believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those implied in the forward-looking statements as a result of, among other factors, changes in economic, market and competitive conditions, changes in the regulatory environment and other government actions, fluctuations in exchange rates and other factors mentioned in SKF’s latest annual report (available on under the Administration Report; “Important factors influencing the financial results”, “Financial risks” and “Sensitivity analysis”, and in this full-year report under “Risks and uncertainties in the business.”

Göteborg, 19 October 2010

Aktiebolaget SKF (publ.)

Tom Johnstone President and CEO

Teleconference/meeting, see press release SKF Nine-month report 2010, dated 19 October 2010.

AB SKF may be required to disclose the information provided herein according to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08.00 am CEST on 19 October 2010.

Aktiebolaget SKF, SE-415 50 Göteborg, Sweden, Company 556007-3495,Tel: +46-31-3371000, fax: +46-31-3372832,

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