INCAP FURNITURE WILL HAVE A SUBSIDIARY IN LATVIA

Incap Furniture Ltd, the furniture-manufacturing branch of Incap Group, will start a subsidiary in Riga, Latvia, at the beginning of the year 2000, to take care of the increasing material and product acquisitions from the Baltic countries and Russia to Finland.

Incap Furniture Ltd is a contract manufacturer of furniture, which designs and manufactures self-assembly softwood furniture for large international furniture chains. The market for self-assembly furniture is expected to continue to grow faster than the demand for other kinds of furniture. Along with the growing market, the significance of international purchasing will become increasingly important.

The purpose of the Latvia subsidiary is to develop Incap’s international network of suppliers and to guarantee the company’s capacity and competitiveness in the growing market.

The net turnover of Incap Furniture during the past January – September was 24.3 million euro, and exports accounted for 95 percent of this. The main marketing area is the European Union. The company has production units at Kärsämäki and Varpaisjärvi in Finland and a sales company in North Carolina, USA.

Incap Group is a contract manufacturer of electronics and furniture. The net turnover of the Group in January – September 1999 was 49.7 million euro. The total number of employees is 785, of which 260 persons are employed by Incap Furniture.

Oulu, 14 Dec. 1999

INCAP CORPORATION

Tero Frey

President & CEO