Aspocomp Group - Company Announcement

APOCOMP S CO-DETERMINATION NEGOTIATIONS: SALO PLANT TO CLOSE - Partnership talks in Asia, start-up of the plant in India delayed

Aspocomp Group Oyj   Company Announcement  June 15, 2007 at 4:40 pm

The statutory labor co-determination negotiations that were launched
in May concerning the personnel at Aspocomp Oy and Aspocomp Group Oyj
were concluded today. As a result, it was decided that a total of 237
personnel, consisting of 183 non-salaried and 54 salaried employees,
will be made redundant. Production at the Group's Salo plant will be
closed down and employment of 215 personnel terminated. The aim is to
shut down production by mid-July and implement the planned personnel
reductions in 2007. Aspocomp intends to use part of the plant's
production equipment in its facilities in China and India.

The negotiations concerned about 350 employees in Finland, excluding
the personnel of the Oulu plant. After the personnel reductions,
headcount in Finland will total 219 employees. Of those, 161
personnel work at the Oulu plant. Part of the Group's research and
development will remain in Finland to serve the company's global
customers. In addition, the Group will start product development in
the premises of its Chinese plant this year.

Effect of the decisions on net sales and profitability

The goal of the layoffs and the shutting down of the Salo plant is to
reach annual savings in excess of EUR 10 million. Balance sheet
write-offs and non-recurring costs resulting from the layoffs are
estimated to total about EUR 20 million. Of this, write-off of the
plant building accounts for about EUR 11 million. The shutting down
of the plant is anticipated to decrease the Group's net sales for
2007 by about EUR 10 million and reduce loss before non-recurring
items by about EUR 3 million. The full-year 2007 result is expected
to be markedly unprofitable. Aspocomp Group Oyj's liquidity is
estimated to remain weak due to the negative result and a reduction
in certain credit limits that the company previously had available. A
larger than planned part of the net proceeds obtained from the rights
offering is used for the company's working capital requirements.
After closing down the Salo plant and excluding the effect of the
plant project in India, the Group's profit from the continuing
operations is expected to improve to the break-even level.

Negotiations on partnership in Asia, delay in the plant project in
India

Aspocomp has previously announced that it will be active in the
industry's consolidation trend. The Group is presently negotiating on
potential cooperation with strategic partners in order to accelerate
its growth in Asia and to finance its planned investment programme.

The possible choice for strategic partnership will affect the timing
for the start-up of the plant in India. The Group will also continue
negotiations with alternative financiers to the plant project. The
duration of the partnership and financing negotiations cannot be
estimated and the company cannot guarantee their outcome.

For further information, please contact Maija-Liisa Friman, CEO,
tel. +358 9 7597 0711.

ASPOCOMP GROUP OYJ



Maija-Liisa Friman
President and CEO


Aspocomp: Innovative interconnection solutions for the electronics
industry

The Aspocomp Group develops and offers high technology
interconnection solutions for the electronics industry in close
cooperation with its customers. Aspocomp supplies printed circuit
boards for mobile data terminal equipments, data communications
networks and automotive industry. The company supports its global
customers in developing new technologies and offers a fast route from
product development to applications and volume production. The
Group's production facilities are located in Finland, China and
Thailand. In 2006, its net sales stood at EUR 149 million and it had
about 3,350 employees.


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