Incap to launch co-operative negotiations in corporate services and in the Helsinki factory

Incap Corporation                Stock Exchange Release      

14 November 2011 at 12.30 p.m.

INCAP TO LAUNCH CO-OPERATIVE NEGOTIATIONS IN CORPORATE SERVICES AND IN THE HELSINKI FACTORY

Incap Corporation has invited the personnel in its corporate services in Finland as well as the entire personnel of its Helsinki plant to negotiations in accordance with the Co-operative Act.

The target of Incap is to increase the efficiency of operations and to improve the cost structure in corporate services. Eventual measures include re-organisation and centralisation of certain functions for example to the company’s office in Tallinn, Estonia. According to the preliminary estimation of the company the work in some functions would be decreased substantially so that the planned measures could lead to a reduction of approximately 15 employees in Finland. At the moment, a total of 37 employees are working in Incap’s corporate services with locations in Helsinki, Vaasa, Vuokatti and Oulu, Finland.

As to the operations in the Helsinki factory, the target of Incap is to improve the company’s profitability and to adjust the production of the factory according to the demand. Incap has already earlier announced its willingness to give up the sheet-metal production in the factory. The negotiations in accordance with the Co-operative act will concern actions that can lead to terminations of employment contracts or temporary lay-offs of the personnel. Alternative options to these actions can also be the partial outsourcing and the closure of the factory partially or entirely as well as the transfer of production to other factories of the company where appropriate. The Helsinki factory employs 61 persons, a part of which are currently temporarily laid off.

INCAP CORPORATION

Sami Mykkänen
President and CEO

Further information:

Sami Mykkänen, President and CEO, tel. +358 40 559 9047
Kirsi Hellsten, Director, Human Resources, tel. +358 50 387 7437
Hannele Pöllä, Director, Communications and Investor Relations, tel. +358 40 504 8296

DISTRIBUTION
NASDAQ OMX Helsinki Ltd.
Principal media
The company’s home page 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, India and China. The Group’s revenue in 2010 amounted to EUR 59.2 million, and the company currently employs approximately 760 people. Incap’s share is listed on the NASDAQ OMX Helsinki. Additional information: www.incap.fi.