Statutory cooperation negotiations at Incap’s Vuokatti factory concluded

Incap Corporation Stock exchange release 17 March 2010 at 3 p.m.



Statutory cooperation negotiations at Incap’s Vuokatti factory concluded


Statutory cooperation negotiations, which were initiated at Incap’s Vuokatti factory on 4 February 2010, have been concluded today. Since no solutions were found during the negotiations for continuation of the factory operations, Incap has decided to transfer the factory’s production to Estonia. As a result, the factory operations will be closed down gradually during 2010 and altogether 124 persons’ employment contracts will be terminated.

Redundancies will be made gradually in line with the product transfer schedule. It is estimated that most of the products are transferred during the summer. Most of the employees have a period of notice of four or six months.


Incap is cooperating with the local Centre for Economic Development, Transport and the Environment and the municipal authorities to find means for job creation for the personnel. The company’s plan for supporting the change includes among others services from occupational healthcare and the use of certain personnel benefits until the end of the year. Participation in training or entering a new job is supported by flexibility in the duty of work.


Incap owns the Vuokatti factory space of approx. 9,000 m² together with Sotkamo municipality. The premises are offered for rent, with the possibility to amend the space to meet the needs of several smaller companies.


Incap estimates that the concentration of its European electronics manufacturing into one unit will bring savings of approximately EUR 3 million in 2011.



INCAP CORPORATION


Sami Mykkänen

President and CEO



Further information:

Sami Mykkänen, President and CEO, Tel. +358 40 559 9047

Eeva Vaajoensuu, CFO, Tel. +358 40 763 6570

Hannele Pöllä, Director, Communications and HR, Tel. +358 40 504 8296


DISTRIBUTION

NASDAQ OMX Helsinki Ltd

Principal media

www.incap.fi


INCAP IN BRIEF

Incap Corporation is an internationally operating contract manufacturer whose comprehensive services cover the entire life-cycle of electromechanical products from design and manufacture to maintenance services. Incap’s customers include leading equipment suppliers in energy efficiency and well-being technologies, for which the company produces competitiveness as a strategic partner. Incap has operations in Finland, Estonia and India. The Group’s revenue in 2009 amounted to EUR 70 million and the company currently employs approximately 780 people. Incap’s share is listed on the NASDAQ OMX Helsinki. Additional information: www.incap.fi.