INCAP TO START EMPLOYEE NEGOTIATIONS AT ITS VUOKATTI UNIT

Incap Corporation has today invited the representatives of all personnel groups working at its Vuokatti unit to negotiations in accordance with the Act on Co-operation. The negotiations concern the possible restructuring of the unit and the eventual respective measures that will result in temporary layoffs, the change of employment contracts to part-time contracts as well as the termination of employment contracts on the basis of production and financial grounds.
 
The eventual actions to be agreed upon in the negotiations will apply to a maximum of approximately 130 employees. The Vuokatti unit currently employs 233 people, 42 of whom have fixed-term contracts of employment.
 
Incap’s objective is to ensure and increase its competitive edge by enhanced division of roles between its different manufacturing units. The Vuokatti unit will be developed to focus especially on the manufacture of prototypes, the ramp-up of new products and the demanding testing and after-sales services. Incap plans to centralise actual volume manufacturing and labour-intensive production at its unit in Kuressaare, Estonia.
 
Incap Corporation’s estimation of its business trends in 2006, as informed in the interim report on 4 May, remains unchanged. Revenue is expected to top that of 2005 and relative profitability is estimated to remain at the same level as last year.    
 
INCAP CORPORATION
 
 
Juhani Hanninen