STOCKHOLM, Sweden, Jan. 21, 2004 (PRIMEZONE) -- On December 11, Framfab announced that additional measures would affect fourth quarter earnings following changes in the Swedish operation. Framfab has further decided to reduce the size of its staff in Goteborg and Stockholm. The primary objective is to improve profitability in the Swedish business as part of the overall initiative of returning the entire group to profitability.
15 employees in Goteborg and up to all 18 employees in Stockholm may be affected, depending on the outcome of the talks that are currently under way with the union. Framfab will continue to serve the Stockholm market from its other offices and subsidiary companies. The company is in dialogue with the Stockholm employees regarding the possibility of them taking over parts of the business. Although Framfab Sweden posted a small fourth quarter profit excluding restructuring costs, it will set aside approximately SEK 9 million for these measures. The changes will make their full impact to profitability in the second quarter of 2004.
"Our primary objective is profitability," said Jesper Andersen, Managing Director of Framfab in Sweden and Denmark. "And one of the most effective ways of achieving this in Sweden is unfortunately restructuring. However, we will be working hard for a solution which secures continuing service to our clients"
As previously announced, Framfab has signed an agreement to acquire Paregos and its 20 employees. Paregos commands a prominent position in the Swedish digital branding market.
For additional information, please contact: Jesper Andersen, Managing Director, Framfab Sweden and Framfab Denmark +45 24 82 27 11, jesper.andersen@framfab.dk
Tobias Bulow, Group Communications Manager, Framfab AB +46 709 41 22 58 tobias.bulow@framfab.se
Framfab is a leading European specialist in digital media solutions and communication based on Internet technology. Most of Framfab's customers are large international companies, including 3M, American Express, AXA, Carlsberg Breweries, Cheltenham and Gloucester Building Society, the Coca-Cola Company, Danske Bank, DuPont, Ericsson, Hydro Texaco, Kellogg's, Kraft Food International, Lloyds TSB, Nike, Nobel Biocare, Observer, Philip Morris International, Philips, Postbank, SAAB, Sara Lee Douwe Egberts, Vodafone, Volvo Car Corporation, Volvo Group and UBS. Framfab operates in Denmark, Germany, the Netherlands, Sweden, Switzerland, and the UK. The company is quoted on the O list of the Stockholm Stock Exchange (ticker symbol FRAM). For more information, please visit www.framfab.com.
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