INCAP ELECTRONICS WILL HAVE A SUBSIDIARY IN ESTONIA

Incap Electronics Ltd, which constitutes the electronics sector of Incap Group, will start a subsidiary in Estonia. Incap Electronics Estonia Oü, located in Kuressaar, Estonia, will strengthen the position of Incap Electronics as a contract manufacturer of electronics. The subsidiary’s products will include PCB assembly and testing and final assembly.

The purpose of the Estonia subsidiary is to improve the competitive capacity of Incap Electronics and to safeguard growth in the future. The customers of the new unit will consist of the current customers of Incap Electronics Ltd as well as Swedish and Danish electronic companies. The company’s order backlog is good, and its capacity has been sold until the early summer.

Incap Electronics Estonia will rent the facilities of a contract manufacturer of electronics that previously operated in Kuressaar and will employ as new workers the approximately fifty skilled workers that used to be employed by this company.

The net turnover of Incap Electronics Ltd last year was 34.2 million euro, and it employed 427 people. Incap Electronics has three production units, of which the Vuokatti unit specialises 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 people.

Oulu, 13 March 2000

INCAP CORPORATION

Tero Frey

President & CEO