INCAP ELECTRONICS SIGNED AN AGREEMENT ABOUT THE MANUFACTURING OF COMPONENTS FOR SYNCHRONOUS MACHINES

Incap Electronics Ltd, which constitutes the electronics sector of Incap Group, and ABB Industry Oy Helsinki, which is part of ABB Group, have signed an agreement concerning the purchase an operation manufacturing rotor pole cores for synchronous machines.

In accordance with the agreement, which was signed today, the Synchronous Machines Division of ABB Industry Oy outsources the manufacturing of rotor pole cores to Incap Electronics. The agreement is concordant with the letter of intent released on 17 Feb. 2000. The corporate acquisition, which is accordant with Incap Electronics’ strategy, will strengthen the position of Incap Electronics as a contract manufacturer for electronics industry and enhance the cooperation between ABB and Incap Electronics.

Rotor pole cores are essential components of large electrical machines. Incap Electronics will take over the subassembly and component deliveries of the rotor pole core manufacturing of ABB Industry and will continue the previously Helsinki-based operation in its Vaasa unit. The agreement concerns a personnel of about ten people working for ABB Industry, who can choose either to continue in the service of ABB or to move as old employees to the Helsinki or Vaasa unit of Incap Electronics. The present corporate acquisition will also provide work to the cooperative network of Incap Electronics and cause it to expand. The net turnover of the acquired operation is about three million euro.

Last year, Incap Electronics had a net turnover of 34.2 million euro, and the company employed 427 people. Incap Electronics currently has four production units, of which the Vuokatti and Estonian units specialise in electronics manufacturing and the Helsinki and Vaasa units in mechanical manufacturing.

Incap Group is a contract manufacturer of electronics and furniture. The group’s net turnover in 1999 was 70.8 million euro, and it employed a total of 774 persons.

Oulu, 21 March 2000

INCAP CORPORATION

Paula Kähkönen

Communications Manager