Investor AB Year-End Report 1998

Business Wire, Feb 11, 1999

Market value, main holdings

                              1999             1998             1997
SEK m.                         2/3            12/31            12/31
Market value, main holdings 93,775(1)        88,923(1)        83,971(2)

1)   Including 20 percent of the shares in Saab AB at market value.

2)   Including 100 percent of the shares in Saab AB at book value.


     The value of the main holdings, adjusted for net changes,
increased by 1 percent during the year. The OMX Index rose 17 percent
during the same period.


Investor main holdings, December 31, 1998

Company      Number  Of which  Market  Share price Share of Share of Share of
           of shares  on loan   value  performance  port-  capital  voting
                (000)  (000)    SEK m.   1998(1)   folio(%)  (%)     (%)
        rights (%)
Astra        176 255     209     29 168      20       33       11   13
Ericsson      64 019     348     12 964      29       15        3   22
Scania(2)     52 994     348      7 904     -16        9       26   42
ABB           90 275              7 809      -8        9       10   13
Gambro        68 638     166      6 040     -39        7       20   26
Stora
 Enso(3)      50 485              5 503     -10        6       10   11
Atlas Copco   27 523       1      4 899     -25        5       15   21
S E B         48 486      65      4 146     -15        5        8    9
WM-data       10 061     238      3 481     141        4       13    6
Electrolux    13 347      59      1 912      27        2        4   21
Saab AB       21 612              1 837       1(4)     2       20   36
SKF           14 955              1 376     -44        1       13   30
SAS Sweden    13 156       1        980     -35        1       19   19
OM Gruppen     8 867       1        904       6        1       11   11

Total                            88 923              100

1)   Most heavily traded class of share.

2)   Market value pertains to the 52,994,181 shares not encumbered by
     distributed covered warrants.

3)   Price trend in 1998 pertains to STORA until December 29, 1998,
     when Stora Enso was listed.

4)   Pertains to price trend since June 18, 1998.

New Investments and Other Holdings

     The build up of the new investments unit continued during the
year. The organization at the offices in New York, Hong Kong and
Amsterdam has focused on new and international investments.
     Investor's wholly owned venture capital company Novare Kapital AB
expanded during the year and several new investments were made.
Investor's partly owned operations EQT, a joint name for the private
equity funds EQT Scandinavia I(1) , EQT Scandinavia II and EQT
Danmark, also made a number of new investments during the year. Within
the framework for the two new funds, EQT Scandinavia II and EQT
Danmark, interest was made among both Nordic and international
investors, and EQT received a total of approximately SEK 5,7 billion
in venture capital for EQT Scandinavia II and DKK 1,0 billion in
venture capital for EQT Danmark.
     The value of new investments increased by SEK 1,162 m. in 1998.
At year-end the market value of Investor's new investments amounted to
SEK 5,509 m. The 1998 result includes realized gains and dividends
amounting to SEK 709 m. and write-downs of SEK 344 m. The capital gain
was mainly attributable to the sale of the entire holding in Tieto.
Return for the new investments unit thus exceeded 30 percent during
the year.
     In addition, among Investor's other holdings, the entire holding
in Roche was sold which provided a capital gain of SEK 407 m.
     The operations within GHH Grand Hotel Holdings developed well
during the year. Since January 1998, Berns' hotel, conference and
restaurant operations have been part of GHH.

1)   Formerly Scandinavian Equity Partners.

Saab Automobile AB

     Saab Automobile AB, which is owned to 50 percent by Investor and
50 percent by General Motors, reports an income before tax for 1998 of
SEK -494 m. (-1,834). Invoicing increased during the year by 27
percent to SEK 28,418 m. (22,390). For the second half of 1998, Saab
Automobile reports operating income of SEK 668 m. (-866) and operating
income for the full year 1998 amounted to SEK 68 m. (-1,230).
     Volume increased by 18 percent during the year to 118,581
(100,300) cars. In several markets, mainly in Western Europe, Saab
Automobile set new sales records. Increases of 40 to 60 percent were
noted and in individual cases more than 100 percent compared with
1997.
     The result for 1998 is in line with the expectations as to the
company's development shared by the company's management, Investor and
General Motors. In the opinion of the company's management, the
favorable earnings in the second half of 1998 indicate that Saab
Automobile can be expected to achieve a profit in the full year 1999
as well. Supported by a strong model program, management expects the
company to achieve a sales volume of between 130,000 and 140,000 cars
in the current year, and then to reach 150,000 cars in the year 2000.
     Saab Automobile is treated as a main holding in Investor's
accounts. (Saab Automobile's year-end report for 1998 was published on
February 5, 1999, and can be ordered by phone  46 520 841 90 or by fax
 46 520 783 90).

Parent Company Investor AB

     In May 1998, Investor's shareholders were offered the opportunity
to acquire, through the exercise of purchase rights, 44.8 percent of
the share capital and 29.0 percent of the voting rights in Saab AB.
This offer was accepted to 99.5 percent, which provided a payment of
SEK 2,137 m. Investor subsequently owns shares corresponding to 20.3
percent of the capital and 36.1 percent of the voting rights in Saab
AB. As a result of the distribution of purchase rights, unrestricted
equity in the parent company was reduced by SEK 1,431 m.
     During the year, the subsidiaries Patricia AB and Patricia
Holdings AB were merged with the parent company Investor AB.
     Income after financial items amounted to SEK 1,236 m. (3,280).
Net profit amounted to SEK 3,392 m. (3,404), of which SEK 2,236 m. is
a result of the merger. During the year net share purchases were made
for SEK 4,681 m.

Proposed Dividend

     The Board of Directors and the President propose that a dividend
of SEK 11.00 (10.00 as well as one purchase right for shares in Saab
AB), be paid per share, corresponding to a total of SEK 2,100 m.
(1,908). The Board of Directors has also decided to propose to the
Annual General Meeting that a 4:1 split be carried out whereby each
existing share will be divided into four shares of the same class as
the existing share.

Structure of Share Capital and Convertibles

     On December 31, 1998, Investor's share capital amounted to SEK
4,773 m., represented by 191 million shares. On the same date, the
nominal amount of Investor's convertible debenture loans totaled SEK
1,318 m. Of this amount, SEK 1,025 m. pertained to the loan
denominated in Swedish kronor and SEK 293 m. to the loan denominated
in ECU. On December 31, 1998, Investor's own holding in the loan
denominated in Swedish kronor amounted to SEK 899 m. and SEK 293 m. in
the loan denominated in ECU. In total, this corresponds to 90 percent
of the volume of convertible loans outstanding.


Structure of share capital
 and convertibles

Before conversion         Number of    Number of  Percentage of
Class of share             shares    voting rights  capital  voting rights

A 1 vote                 77 922 711    77 922 711     40.8       87.3
B 1/10 vote             112 987 591    11 298 759     59.2       12.7

Total                   190 910 302    89 221 470    100.0      100.0

Convertible debenture loans (1)

B 1/10 vote               9 285 450       928 545

After full conversion
A 1 vote                 77 922 711    77 922 711     38.9       86.4
B 1/10 vote             122 273 041    12 227 304     61.1       13.6

Total                   200 195 752    90 150 015    100.0      100.0