Substantial downsizing at NOTE's plant in Skellefteå

Substantial downsizing at NOTE's plant in Skellefteå

NOTE's largest customer in its Telecom segment has decided to stop producing
part of its range, requiring a further downsizing at NOTE's plant in Skellefteå,
northern Sweden. These measures will generate termination expenses and
write-downs of some SEK 40 m. The settlement with the customer will bring
additional liquidity of some SEK 40 m to NOTE. 

“Apart from the recession, we've faced a structural challenge during the year
due to the succession of one major product of our largest customer in the
Telecom segment. This fact has had a negative effect on volumes and
profitability in our current business. We've reached a mutual understanding with
the customer to stop manufacturing their product immediately.

The customer's decision to cease manufacturing has come earlier than expected,
requiring further downsizing of NOTE's operation at Skellefteå. These measures
will generate termination expenses and write-downs totalling some SEK 40 m. This
cost will be charged fully to third-quarter profits.
The settlement we have now reached with the customer will bring additional
liquidity of some SEK 40 m to NOTE, and in combination with positive cash flow
from operations in the second and third quarters of the year, our indebtedness
will reduce.

The scope of operations at Skellefteå has been downscaled in recent years, and
at present, it has some 40 employees. Most of our labour-intensive sourcing and
production services are now conducted at our units in Eastern Europe and China.

NOTE's sales of new assignments are progressing as planned. With previously
reported and completed cost-cutting, the group's cost level has been reduced
significantly. Taken together with the measures at Skellefteå, our judgment is
that our running costs have been adapted to current demand,” commented Knut
Pogost, NOTE's CEO and President.

For more information, please contact: 
Knut Pogost, CEO & President, tel. +46 (0)8 568 99006, +46 (0)70 552 3444 
Henrik Nygren, CFO, tel. +46 (0)8 568 99003, +46 (0)70 977 0686

About NOTE
NOTE's business concept is to deliver services in production and logistics for
electronics-based products. NOTE has a presence in Sweden, Norway, Finland, the
UK, Estonia, Lithuania, Poland and China. In 2008, net sales were SEK 1,710 m;
the group has approximately 1,200 employees. For more information, go to
www.note.eu