Electrolux to concentrate production of refrigerators in Italy to factory in Susegana

Electrolux to concentrate production of refrigerators in Italy to factory in
Susegana

In February 2008, Electrolux launched an investigation on how to increase the
competitiveness of Electrolux refrigeration production in Italy. As a result of
the investigation, Electrolux has decided to concentrate production of
refrigerators in Italy to its factory in Susegana while ceasing production in
Scandicci. Additional investments will be made in the Susegana factory to
increase efficiency, productivity and competitiveness for a sustainable future.

“The competitiveness of our Italian refrigerator plants has been weakening for
several years, which is why we decided to carry out this investigation,” says
Ernesto Ferrario, Senior Vice President Operations, Major Appliances Europe. “We
are confident that the conclusions from the investigation, when implemented,
will increase our competitiveness and profitability in the refrigeration
business.”

In recent years, production capacity of refrigerators has grown rapidly, with an
emphasis on Eastern Europe and parts of Asia. This development, in combination
with increased global competition, has led to strong price pressure and
subsequently a decline in margins.

A total of 450 employees will be affected at the Scandicci plant and
approximately 300 in Susegana. Electrolux will assist in finding solutions to
reduce negative impact on affected employees. Options considered include
outplacement services and facilitation of re-industrialization of the Scandicci
factory.

The outlined changes to the Electrolux refrigerator production in Italy are
expected to be completed in the second half of 2009. The restructuring will
incur a total cost of approximately SEK 600m of which SEK 540m will be taken as
a charge against operating income in the second quarter 2008.

For further information contact Electrolux Media Hotline on +46 8 657 65 07

Electrolux is a global leader in home appliances and appliances for professional
use, selling more than 40 million products to customers in 150 countries every
year. The company focuses on innovations that are thoughtfully designed, based
on extensive consumer insight, to meet the real needs of consumers and
professionals. Electrolux products include refrigerators, dishwashers, washing
machines, vacuum cleaners and cookers sold under esteemed brands such as
Electrolux, AEG-Electrolux, Eureka and Frigidaire. In 2007, Electrolux had sales
of SEK 105 billion and 57,000 employees. For more information, visit
http://www.electrolux.com/press
Electrolux may be required to disclose the information provided herein pursuant
to the Securities Market Act.