Neo Industrial Oyj - Company Announcement

NEO INDUSTRIAL CLOSED THE DEAL ON SELLING THE CABLE MANUFACTURING COMPANIES IN RUSSIA

NEO INDUSTRIAL PLC           STOCK EXCHANGE RELEASE      22 May 2013 at 9.00



Neo Industrial Group has today finalized the selling of OAO Expokabel and ZAO
Reka Kabel, the Group's cable manufacturing companies in Russia. The relating
agreement on share transaction was signed on 3 April 2013. The parties have
agreed not to publish the price of this transaction. 

OAO Expokabel manufactures special cables for marine engineering, oil and gas
industry, as well as for nuclear power plants. ZAO  Reka Kabel is specialized
in manufacturing medium voltage cables. The main market area of the companies
is Russia with the annual net sales of EUR 10 million, constituting 10 per cent
of Cable segment's net sales in 2012. The number of employees is 230. 

The purchaser of the companies is holding company Whitescope Limited, operating
in cable business in Russia and Ukraine. 

The transaction will effect positively on the financial position and especially
the liquidity of Neo Industrial Group. The effect on the result and equity of
the Group is slightly positive. 

Reka Cables Ltd, Cable segment ‘s company based in Finland, will continue
selling and marketing  Finnish-made cables in Russia and CIS countries through
its subsidiary in Russia. The transaction has no effect on the operation of
Reka Cables Ltd. 



Neo Industrial Plc


Jari Salo
Managing Director



For further information, please contact:
Jari Salo, Managing Director, Neo Industrial Plc, tel. +358 207 209 196
Jorma Wiitakorpi, Managing Director, Reka Cables Ltd, tel. +358 207 200 380


www.neoindustrial.fi

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 segment is Cable Industry.