Cencorp - Company Announcement

CENCORP ENDS TEMPORARY LAY-OFFS AFFECTING ALL EMPLOYEES IN FINLAND, RENEWS FINANCING AGREEMENT WITH AHLSTRÖM CAPITAL AND CONTINUES NEGOTIATIONS ON THE SALE-LEASEBACK OF THE BEIJING PLANT BUILDING

Cencorp Corporation Stock Exchange Release 31 January 2012 at 15:20 Finnish time

CENCORP ENDS TEMPORARY LAY-OFFS AFFECTING ALL EMPLOYEES IN FINLAND, RENEWS
FINANCING AGREEMENT WITH AHLSTRÖM CAPITAL AND CONTINUES NEGOTIATIONS ON THE
SALE-LEASEBACK OF THE BEIJING PLANT BUILDING 

Due to the brighter market outlook, particularly in the North American markets,
Cencorp has decided to end the temporary lay-offs that started in September of
2011 and affected all of the company's employees in Finland. Cencorp estimates
that the Group's order book will develop favorably in the coming months. The
company is also seeking to increase its investments in product development,
especially in the area of renewable energy technologies. 

In June 2011 Cencorp agreed with AC Finance BV, a subsidiary of Ahlström
Capital Oy, on a short-term loan of EUR 1 million. The loan period was extended
at the turn of the year from December 2011 to 31 January 2012. Cencorp and AC
Finance BV have now agreed to extend the loan maturity date until 30 June 2012. 

Cencorp's Chinese subsidiary Savcor Face (Beijing) Technologies Co., Ltd has
negotiated with real-estate investors on a sale-leaseback transaction regarding
the plant building in Beijing. The transaction has not yet been finalized, but
in the light of currently available information, the company expects it to be
realized before the end of the first quarter. The intention is to use the sales
price to repay the Bank of China a loan of RMB 40 million, i.e. some EUR 4.9
million. Negotiations with the Bank of China continue, including on amending
the loan installment program. 

According to available estimates, the company's financing position will
continue to be tight. In addition to the measures described above, the company
has therefore started discussions with its major financiers and shareholders on
measures to strengthen the financing position until the company's cash flow is
expected to return to positive. 

Mikkeli, 31 January 2012

CENCORP CORPORATION

BOARD OF DIRECTORS



For more information:
President and CEO Mats Eriksson, tel. +358 400 358 982,
mats.eriksson@cencorp.com 

Distribution:
NASDAQ OMX, Helsinki
Main media
www.cencorp.com

Cencorp Corporation is a leading provider of industrial automation solutions.
The equipment included in the product portfolio designed for depaneling,
odd-form assembly, testing and laser materials processing substantially
improves the efficiency of customers' production. The product range also
includes EMI shielding solutions, flexible circuits, decorations and RFID
antennas. Cencorp's customers are automotive electronics manufacturers and
manufacturers operating in telecommunications, industrial automation and EMS.
Cencorp's head office is located in Mikkeli, Finland. The company is part of
the Finnish Savcor Group.