Benefon Oyj - Company Announcement

BENEFON COMMENCE THE CO-OPERATION PROCEDURE IN FINLAND

Benefon Oyj has decided to commence a formal industrial co-operation negotiation
with its personnel in accordance with the Co-operation Act in order to          
rationalise and re-organise the operations of the company according to the      
Company´s refocused strategy. The industrial co-operation procedure, with the   
negotiation call presented to the personnel today, will relates to improving    
operational efficiency and personnel re-organisation at Benefon's main unit in  
Salo.                                                                           

Co-operation procedure will involve all employees of the Company in Finland, and
the presented eventual adaptation measures include also forced leaves, possibly 
touching all personnel in Finland, and redundancies. According to the           
preliminary plan, savings measures on personnel costs would be made through     
lay-offs, due to which the Company is not able to estimate the extent of        
eventual redundancies at this point.                                            

Benefon employs currently 63 people in Finland.                                 

The action plan for the Company´s Finland operations presented in negotiations  
is part of the profitability improvement program needed by the Company. It is   
based on the Company´s newly refocused business strategy to increasingly        
concentrate on services and service solutions where it is possible to reach     
significantly higher profitability compared to manufacturing of mobile devices, 
and where fluctuations of working capital are more readily manageable.          



BENEFON OYJ                                                                     


Tomi Raita                                                                      
CEO