Kongsberg Group sells yachting business

The following is an excerpt from a press release.

Horten, Norway, September 2005

Kongsberg Group (KONGSBERG) has signed an agreement with the Nordic private equity fund Altor for the sale of the parts of Simrad that develop, manufacture and sell maritime electronics for use in yachts and commercial vessels. The business will continue under Altor with the name Simrad Yachting and KONGSBERG will continue to own the remaining part of Simrad that focuses on Fisheries activities.

The sale enables Kongsberg Maritime to focus on its key business areas.

"Simrad Yachting, which has largely addressed the consumer market, has developed in a direction that differs more and more from the industrial markets served by the rest of KONGSBERG. Consequently, the yachting sector is no longer considered a core activity and we are of the opinion that we have found a good, future-oriented solution for Simrad Yachting and Fisheries activities. This implies a concentration of our strategy in the maritime segment," reports Torfinn Kildal, president of Kongsberg Maritime.

Altor will invest considerable efforts in ensuring that Simrad Yachting will improve its strategic position in yacht electronics.

As of next year, Simrad's Fishery activities will be integrated into Kongsberg Maritime's hydroacoustics activities, benefiting from the extensive R&D and sales operations already in place.