Scanfil - Company Announcement

THE BOARD OF DIRECTORS OF SIEVI CAPITAL PLC HAS SIGNED A DEMERGER PLAN

SIEVI CAPITAL PLC   STOCK EXCHANGE RELEASE   11 AUGUST 2011    11.00 A.M.

THE BOARD OF DIRECTORS OF SIEVI CAPITAL PLC HAS SIGNED A DEMERGER PLAN

The board of directors of Sievi Capital plc (”Sievi Capital”) has on 11 August
2011 signed a demerger plan. According to the plan, contract manufacturing and
other industry operations are demerged into a newly established, publicly
listed company with investment operations remaining in the demerged company
Sievi Capital. The proposed new name for the contract manufacturing company is
Scanfil plc. The demerger will clarify corporate structures, enhance operative
transparency and hence, promote the value appreciation for shareholders in the
long term. 

The complete demerger plan is available in Finnish on the Sievi Capital's
website at www.sievicapital.com / Investors. The demerger plan includes the
board of directors' proposal for the extraordinary shareholder's meeting to be
held on the latter part of 2011 regarding, among other, the following issues: 

   - the corporate names of the companies participating in the demerger, their
     Articles of Association, selecting procedure of boards and auditors and
     share capital
   - consideration shares for Sievi Capital's shareholders and time of demerger
   - the division of the demerging company's assets and liabilities to the
     recipient company


A demerger prospectus will be published on or about November 2011. The
prospectus will include descriptions of the operations of the companies
participating in the demerger, their group balance sheets, carve-out financial
information extracted from the demerging Sievi Capital's consolidated financial
statements and other details concerning the proposed demerger. 

Carnegie Investment Bank AB, Finland Branch is Sievi Capital's financial
advisor and lead manager of the demerger and Attorneys at law Borenius Ltd is
its legal advisor. 



SIEVI CAPITAL PLC

Harri Takanen
President



Additional information:
President Harri Takanen
Tel +358 8 4882 111





Distribution      NASDAQ OMX, Helsinki
                      Major Media
                      www.sievicapital.com





Sievi Capital Group comprises the investment and parent company Sievi Capital
plc, and a subgroup called Scanfil EMS Oy, which is engaged in contract
manufacturing for international telecommunications technology and professional
electronics manufacturers. The objective of the investment activities is to
make the management of the company's funds more effective and productive by
diversifying the risks and finding new growth potential. 

Scanfil EMS Oy has 35 years of experience in demanding contract manufacturing.
Scanfil is a systems supplier that offers its products and services to
international telecommunications systems manufacturers and professional
electronics customers. Typical products are equipment systems for mobile and
public switched telephone networks, automation systems, frequency converters,
lift control systems, equipment and systems for electricity production and
transmission, analysers, slot machines and different meteorological
instruments. The company has production facilities in China, Estonia, Hungary
and Finland. 

The associated companies of Sievi Capital Group:
Kitron ASA (KIT) (Sievi Capital plc's share of ownership 32,96%) is a listed
Norwegian subcontractor, which operates in five different customer segments:
the marine and oil industry, basic industry, defence equipment industry,
hospital and healthcare equipment industry and data and telecommunications
industry. In addition to Norway, Kitron ASA has plants and production in
Sweden, Lithuania, Germany, China and, as of the beginning of 2011, also in the
United States. Kitron ASA's turnover in 2009 was NOK 1,643.9 million (about EUR
210.5 million). www.kitron.com 

Greenpoint Oy (Scanfil EMS Oy's share of ownership 40%) focuses on development
and supply of solutions and equipment, which improve placements, visibility and
sales of customer products in the Point-Of-Sale. The Greenpoint product
portfolio includes a large variety of refrigerated merchandisers, displays and
integrated check-out zone concepts. The company serves both brand owners and
retail chains internationally. Along with the European markets Greenpoint Oy
has entered North and Latin American markets through partnerships.
www.greenpoint.fi 

iLOQ Ltd (Sievi Capital plc's share of ownership 23%) develops, manufactures
and markets innovative, high security, electronic and battery-free locking
solutions that combine modern mechatronics with communications and software
technology. The functionality of the iLOQ S10 product concept developed by iLOQ
Ltd and the added customer value it generates has been shown to be good by
achieving significant growth and customer accounts in the Finnish lock market.
The company has built a Finnish distributor network that covers growth centers
and major cities. www.iloq.fi 

IonPhasE Oy (Sievi Capital plc's share of ownership 40%) develops and
manufactures high performance dissipative polymers that help to control static
electricity. IonPhasE products are utilized in wide range of industries like
chemical, automotive, telecommunication and consumer electronics. Based on
own-patented technology, IonPhasE manufactures polymers called IonPhasE IPE.
www.ionphase.fi 

Panphonics Oy (Sievi Capital plc's share of ownership 40%) is the world's
leading provider of directional audio solutions. Panphonics manufactures
directional audio solutions for acoustically demanding applications based on
it's own patented technology. Panphonics Sound Shower directional audio
speakers can be found in banks, retail stores, digital signage projects,
information kiosks, theatres, and offices throughout the world. Panphonics is
also component manufacturer and licensor of plane wave technology for
industrial audio manufacturers and audio solution providers. www.panphonics.com