Board of Leica Adopts Neutral Position Between Two Offers

On 25 July 2005 Leica Geosystems (Switzerland) has entered into a transaction agreement with Danaher Corporation in relation to the recommended offer by Danaher of CHF 500 (US$ 398.535) per share in cash for all of the publicly held shares of Leica Geosystems. On Monday, 15 August 2005, Hexagon AB announced that it would improve its initial offer for all of the publicly held shares of Leica Geosystems and the offer prospectus in relation to this offer was published in yesterday's newspapers.

As a result of the Improved Hexagon Offer, the Board of Leica Geosystems has agreed with Danaher Corporation to terminate the Transaction Agreement by mutual consent and with immediate effect. As a consequence, the Board of Leica Geosystems withdraws the recommendation made in relation to the Danaher Offer and it will, based on the currently available information, adopt a neutral position as between the Danaher Offer and the Improved Hexagon Offer.

The Board will respond to the Improved Hexagon Offer published on 18 August 2005 in a formal Board Report to be issued in due course.