Neo Industrial Oyj - Company Announcement

NEO INDUSTRIAL’S SUBSIDIARY REKA CABLES CONCLUDED CO-DETERMINATION NEGOTIATIONS

NEO INDUSTRIAL OYJ    STOCK EXCHANGE RELEASE   October 19, 2012 at 11.15 am

Neo Industrial's subsidiary Reka Cables has concluded the co-determination
negotiations concerning the entire personnel. The negotiations were announced
on October 1, 2012. 

The purpose of the co-determination negotiations was to secure company's
competitiveness considering weak demand on the main market (Scandinavia  and
Baltic countries) and the uncertain market outlook for the beginning of 2013. 

The adjustments will be accomplished by using temporary lay-offs, carried out
by shutting down the factories for 1 - 2 weeks (Hyvinkää, Riihimäki, Keuruu)
and applying 4-days working weeks. With these arrangements the company is able
to avoid dismissals during 2012. The need for adjustments is expected to end
during Q1/2013. 

Reka Cables' result for the latter half of 2012 is expected to be positive,
even though the result for Q4/2012 will probably be negative. 



Neo Industrial Plc



Jari Salo
Managing Director



Further information:
Mr. Jorma Wiitakorppi, Manging Director, Reka Cables Ltd, tel. +358 207 200 380

Neo Industrial's strategy is to invest mainly in industrial companies with
similar synergic benefits. The aim of investments is with active ownership to
develop the purchased companies and establish additional value. Returns are
sought through both dividend flow and an increase in value. Neo Industrial's
class B shares are listed on the NASDAQ OMX Helsinki Stock Exchange.Neo
Industrial's business segments are Cable and Viscose Fibres.