INCAP’S FIRST QUARTER RESULT WILL BE NEGATIVE

Stock exchange release                 20 March 2007 at 5.15 p.m.
                                                     
 
The demand for Incap’s deliveries to the telecommunications sector has during the first months of the year been even weaker than forecasted. The estimated revenue of the first-quarter will be about 20% lower than in the same period last year and therefore, Incap’s first-quarter result 2007 will be clearly negative. For this reason, also the result for the first half-year is estimated to be negative.
 
The demand for other customer segments has developed as expected. Acquisition of new customers has proceeded promisingly but most of this growth will be generated in the second half of the year. If the planned acquisition of TVS Electronic’s contract manufacturing unit is realised, Incap estimates to gain a revenue of about EUR 10 million from its India business during the year 2007. 
 
Incap’s interim report for January-March will be published on 9 May 2007.
 
 
INCAP CORPORATION
 
Juhani Hanninen
President & CEO
 
 
Further information:
Juhani Hanninen, President & CEO, tel. +358 50 556 7199
Hannele Pöllä, Director, Communications and IR, tel. +358 40 504 8296
 
 
DISTRIBUTION
Helsinki Stock Exchange
Principal media
 
 
INCAP IN BRIEF
Incap Corporation is a fast-growing electronics contract manufacturer whose comprehensive service covers the entire product life cycle from design and manufacture to repair and maintenance services. The company’s main customer sectors are leading equipment suppliers in telecommunications, electrical power technology, the automation and process industries as well as measurement technology, safety electronics and health care. The Incap Group’s revenue in 2006 amounted to EUR 89 million and the company currently employs approx. 540 persons. Incap’s share is listed on the Helsinki Stock Exchange and it is a component of the Nordic Small Cap list within the information technology sector. For additional information, please visit www.incap.fi