Incap - Company Announcement

INCAP SIGNS A LETTER OF INTENT ON THE ACQUISITION OF A BUSINESS IN INDIA

INCAP CORPORATION				STOCK EXCHANGE RELEASE                                     
						27 February 2007 at 8.30 a.m.                                            


INCAP SIGNS A LETTER OF INTENT ON THE ACQUISITION OF A BUSINESS IN INDIA        

Incap Corporation and TVS Electronics Limited have signed a Letter of Intent on 
the acquisition of TVS Electronics' contract manufacturing unit. The objective  
is to transfer the business operations to a new Indian subsidiary of Incap      
during the 2nd quarter of 2007.                                                 

The business operations to be acquired by Incap are located in Tumkur, South    
India near Bangalore. There are approximately 260 employees working in the unit 
currently and its services cover besides the electronics manufacturing and      
product integration also materials procurement, distribution and logistics      
services as well as maintenance. The factory unit with a floor space of approx. 
6,000 square metres manufactures power supplies and medical electronics, among  
others, to customers in India and Europe.                                       

With this acquisition Incap seeks growth and internationalisation in accordance 
with its strategy, and the company aims to strengthen its position as an        
international partner to the world's leading equipment manufacturers. For this  
end, the company has been exploring the possibility of starting up manufacturing
operations in India and has had a sales office in New Delhi since early 2006.   
Incap's target is to gain revenue of about EUR 10 million from its India        
business during the year 2007.                                                  

According to Juhani Hanninen, President and CEO of Incap Corporation, this      
business deal under negotiation is a significant step in Incap's                
internationalisation. “Already in early stages of our study we concentrated in  
searching for a local partner in India, because it is the fastest way to realise
our chosen strategy. In addition to a smooth functioning production facility we 
will also receive an established customer base, because TVS Electronics'        
contract manufacturing unit has a stable market position.”                      
                                                                                
“We will also have TVS Group's support in developing our business further in the
future. Actually this is more about building a partnership in India with the    
recognised TVS Group rather than just an acquisition”, says Hanninen.           

Gopal Srinivasan, Director, TVS Electronics Ltd. says: “We believe that this    
move will continue to provide outstanding services to our valuable customers in 
India and Europe who will additionally benefit from Incap's global contract     
manufacturing delivery platform. Thus, it best serves the interest of customers,
employees and other stakeholders".                                              

TVS Electronics Limited, a part of the 95-year-old TVS Group is one of the      
largest manufacturers of computer peripherals in the country. The range of      
offerings includes products such as dot matrix printers, keyboards, printing    
supplies, transaction solutions and customer support services.                  

TVS-E has a large distribution and service network, which reaches over 450 towns
across the country with two national distributors, more than 200 regional       
distributors and over 3,000 authorized dealer partners. The company has         
manufacturing facilities in Tumkur and Chennai. Further information from        
www.tvse.com and www.tvsgroup.com                                               

Nordic Adviser Group has assisted Incap in setting up operations in India and   
acted as the lead transaction adviser.                                          

INCAP CORPORATION                                                               

Juhani Hanninen                                                                 
President and CEO                                                               
                                                                                
For additional information, contact:                                            
Juhani Hanninen, President and CEO, tel. +358 50 556 7199                       
Anne Sointu, Chief Financial Officer, tel. +358 40 347 2059                     
Hannele Pöllä, Director, Communications and Investor Relations, tel. +358 40 504
8296                                                                            

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INCAP IN BRIEF                                                                  
Incap Corporation is a fast-growing electronics contract manufacturer whose     
comprehensive service covers the entire product life cycle from design and      
manufacture to repair and maintenance services. The company's main customer     
sectors are leading equipment suppliers in telecommunications, electrical power 
technology, the automation and process industries as well as measurement        
technology, safety electronics and health care. The Incap Group's revenue in    
2006 amounted to EUR 89 million and the company currently employs approx. 540   
persons. Incap's share is listed on the Helsinki Stock Exchange and it is a     
component of the Nordic Small Cap list within the information technology sector.
For additional information, please visit www.incap.fi