ATLAS COPCO Interim report at March 31, 2004 (unaudited)

April 27, 2004

Robust order and profit growth

· Order volumes up 11%, 8% negative currency translation effect.  · Revenues reached MSEK 10 858 (10 400), up 9% in volume.  · Operating profit margin increased to 12.1% (10.3).  · Profit after financial items increased to MSEK 1 211 (956).  · Net profit increased to MSEK 819 (636), and earnings per share was SEK 3.91 (3.03).  · Operating cash flow totaled MSEK 837 (1 191).  · Agreement to acquire Ingersoll-Rand Drilling Solutions. Near-term demand outlook  The positive demand trend for Atlas Copco's products and services is expected to continue.  The manufacturing and process industries are expected to continue to increase their investments and demand more aftermarket products and services. It is foreseen that the recent general improvement in demand for construction equipment will continue, even though the activity level in the important non-residential building sector in the United States is expected to remain largely flat. Demand from the mining industry is expected to remain high. The full report