Larox Corporation Company announcement 25 September 2009 at 9.00 am Larox to continue adjustment measures, 2009 result to be negative due to non-recurring costs Due to the international financial crisis, demand for Larox's industrial filters and aftermarket services is still on a low level. Consequently Larox will start negotiations with employee representatives in order to continue adjusting the organization and cost structure to the weakened demand. The aim is to reduce Larox's annual costs by approximately 6.5 million euros. This objective includes the cost reductions that will be achieved through adjustment measures that were decided in spring 2009 and are currently being implemented. It is estimated that these annual cost reductions will be fully realized in 2011. The cost reduction in 2010 is estimated to be 4.5 million euros. These adjustment measures will generate a total of 4.6 million euros non-recurring costs (including the previously announced 1.5 million euros) which will be booked as a reservation in 2009. Due to the non-recurring costs Larox's 2009 result will be clearly negative. The company estimated earlier that the net sales are expected to clearly decrease and profitability is expected to weaken in comparison to the previous year. The adjustment program will concern the whole Larox Group including all subsidiaries and offices. The focus on structural and operating model changes will be in the Group's European companies and operations. The actions of the adjustment program are subject to negotiations with the employee representatives as per the laws and practices in each country. Larox Corporation For further information: Mr. Topi Karppanen President & CEO Phone +358 (0) 20 7687210 Fax +358 (0) 20 7687277 topi.karppanen@larox.com www.larox.com Distribution NASDAQ OMX Helsinki Ltd., Central Media Larox develops, designs and manufactures industrial filters and is a leading technology company in its field. Larox is a full service solution provider in filtration for separating solids from liquids. It supplies comprehensive aftermarket services throughout the lifespan of the Larox solution. Companies world-wide in mining and metallurgy, chemical processing and related industries benefit from the Larox technologies. Larox operates in over 40 countries and has about 600 employees. Larox has production facilities in Finland and in China, and the Group is headquartered in Lappeenranta, Finland. Net sales in 2008 totaled 208.0 million euros, of which more than 93 % were generated by exports and the company's foreign operations.
Larox to continue adjustment measures, 2009 result to be negative due to non-recurring costs
| Source: Larox Oyj