Niscayah Group AB (publ.) implements efficiency enhancement program - closes unprofitable local offices

Niscayah Group AB (publ.) implements efficiency enhancement program - closes
unprofitable local offices

Niscayah Group AB (publ.) has decided to implement an extensive efficiency
enhancement program in order to reduce costs, increase the centralization within
the countries and thereby raise efficiency in the company. The program will
deliver annual cost savings of approximately SEK 180m from 2011. Niscayah has
also concluded an agreement regarding divestment of the unprofitable operations
in Hong Kong.

The general market climate is expected to continue to be weak during 2010,
particularly within implementation. In order to reduce costs, increase the
centralization within the countries and thereby raise efficiency in the company,
Niscayah has decided to implement an additional efficiency enhancement program,
primarily in relation to the operations in Mainland Europe. The program will
deliver annual savings of approximately SEK 180m with full effect from the first
quarter 2011. Restructuring costs related to the program amount to approximately
SEK 200m, and are charged to results for the first quarter 2010. 

”We have identified a series of measures in order to further centralize
operations within the countries, strengthen our competitiveness and improve our
offer. The program should be seen partly as an important element in aligning the
company to a continued difficult market situation, and partly as a general way
of raising efficiency and refining our customer offer”, says Niscayah's newly
appointed President and CEO, Håkan Kirstein.

The efficiency enhancing measures include:
•	Reduction of the work force by approximately 350 people. 
•	Closure of a number of unprofitable local offices. 
•	Centralization of the operations within the countries.
•	Clearer focus on and segmentation of the customer offer and increased activity
within the sales force.

In addition, Niscayah has concluded an agreement regarding divestment of
Niscayah Hong Kong Ltd. The operations comprise installation and service of
security systems and have 12 employees. Sales amounted to approximately SEK 10m
in 2009, which was a negative result for the year. The purchase price is paid in
cash. The transaction is expected to have a marginally positive effect on
Niscayah's earnings per share. The purchaser is ASC (HK) Ltd., one of the
leading integration companies within security in Hong Kong. 

”Niscayah has been established in Hong Kong during some years but has not
reached the size required to achieve satisfactory profitability. The divestment
means that we can now have a clearer focus on our operations in Europe and North
America”, says Niscayah's newly appointed President and CEO, Håkan Kirstein.

For additional information:
Håkan Kirstein, President and CEO 		+46 (0)10 458 80 60
Håkan Gustavson, CFO			+46 (0)10 458 80 40
Johan Andersson, Investor Relations              +46 (0)10 458 80 23

This press release is also available on Niscayah's home page: www.niscayah.com


Niscayah Group AB (publ.) is a world leading security partner offering complete
security solutions for clients with high security demands within market segments
such as banking and finance, industry, defense, healthcare and retail.
Niscayah's services are based on modern technology and include access control,
video surveillance, intrusion protection and fire alarm systems.
www.niscayah.com 


Niscayah Group AB discloses the information provided herein pursuant to the
Securities Markets Act and/or the Swedish Financial Instruments Trading Act.
This information was submitted for publication at CET 08.30 a.m. on March 25,
2010.