Vacon - Tender offer

Vacon to complete acquisition of TB Wood's AC drives business

Vacon Group, STOCK EXCHANGE RELEASE, January 3, 2008 at 11 a.m.

Vacon has now completed the acquisition of TB Wood's AC drives
business, initially announced on December 19, 2007. The acquired
business will be incorporated into Vacon's consolidated financial
statements as from the beginning of January 2008. The acquisition is
not expected to have a material impact on Vacon Group's earnings per
share in 2008 and 2009.

TB Wood's has been operating in the electronics business for about 40
years, and the company has a strong market position in power
transmission products in North America."Strengthening our global market position is a cornerstone of Vacon's
strategy. This acquisition will give a significant boost to Vacon's
growth potential and market position, since the product ranges and
customer bases of the companies complement each other. Specializing
in AC drives for demanding environments, TB Wood's has operations in
the United States, Europe and Asia, and indepth knowhow in AC drives
and applications. We also see synergy benefits to be gained in R&D
and in supplier networks," says Vesa Laisi, President and CEO of
Vacon Plc.

Vacon in brief:
The Vacon Group (OMX:VAC1V) was founded in 1993 for one purpose only:
to create, develop and provide AC drives worldwide. The company's
ambition is to meet the most demanding needs of customers looking for
the ultimate in performance, ease of use and reliability. Vacon
offers AC drives in the power range of 0.25 kW...5 MW. In 2006, Group
revenues totalled EUR 186.4 million.


Vacon Group

Further information:

*          Vesa Laisi, President and CEO, mobile: +358 (0)40 8371 510
*          Mika Leppänen, Vice President, Finance & Control, mobile
  +358 (0)40 8371 235
*          www.vacon.com

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