Incap - Company Announcement

INCAP TO START COOPERATION NEGOTIATIONS AT THE VUOKATTI PLANT

Incap Corporation   Stock Exchange Release   26 August 2008, at 9:00
a.m.

Because of decreased demand for telecommunications products, Incap
Corporation has today summoned negotiations in accordance with the
Cooperation Act at its Vuokatti plant. The negotiations concern all
of the plant's employees and officials.

Any actions to be agreed upon in the negotiations will concern
eventual restructuring and the eventual respective measures may
result in temporary layoffs, the change of employment contracts to
part-time contracts as well as the termination of employment
contracts due to production and financial reasons.

The eventual actions to be agreed upon in the negotiations refer to a
maximum of 80 persons. At the moment, the Vuokatti plant employs 174
people.

The predicted decrease in the demand for telecommunications products
manufactured at the Vuokatti plant is now being realised. According
to its recently revised strategy, Incap will develop its services
particularly for customers of energy efficiency and well-being
technology. In order to improve the efficiency of its service
capacity, Incap will differentiate the roles of its plants, and the
target is to focus the operations of the Vuokatti plant on the new
product introcution (NPI), prototype operations and manufacture,
testing and design for testing of technically demanding products.

INCAP CORPORATION

Sami Mykkänen
President and CEO

Additional information:
Sami Mykkänen, President and CEO, tel. +358 40 559 9047
Eeva Vaajoensuu, CFO, tel. +358 40 763 6570
Hannele Pöllä, Director, Communications and Investor Relations, tel.
+358 40 504 8296

DISTRIBUTION
OMX Nordic Exchange Helsinki
Principal media

INCAP IN BRIEF
Incap Corporation is an internationally operating contract
manufacturer whose comprehensive services cover the entire life-cycle
of electromechanical products from design and manufacture to
maintenance services. Incap's customers include leading equipment
suppliers in the energy efficiency and well-being technologies for
which the company produces new competitiveness as a strategic
partner. Incap has operations in Finland, Estonia and India. The
Group's revenue in 2007 amounted to EUR 83 million and the company
currently employs approximately 730 people. Incap's share is listed
on the OMX Nordic Exchange Helsinki. Additional information:
www.incap.fi.