Okmetic Oyj - Company Announcement

Okmetic sells its epi plant in the United States instead of the wind-down announced earlier and revises its guidance for net sales

OKMETIC OYJ        STOCK EXCHANGE RELEASE       1 APRIL 2016          AT 9.15
A.M.


OKMETIC SELLS ITS EPI PLANT IN THE UNITED STATES INSTEAD OF THE WIND-DOWN
ANNOUNCED EARLIER AND REVISES ITS GUIDANCE FOR NET SALES

Okmetic has sold its production plant focusing on epitaxial deposition of
silicon wafers, located in Allen in the United States, to American company
Epitek Silicon instead of the wind-down announced earlier. Okmetic announced of
the wind-down of the unprofitable unit by the end of 2016 in its stock exchange
release published on 9 December 2015. With the now found buyer the plant will
continue its operations.

The purchase price is 9.5 million US dollars (around 8.5 million euros). As a
result of the sale the business, production facility, equipment, inventories as
well as majority of the personnel of Okmetic's US-based subsidiary Okmetic Inc.
will transfer to the buyer. The financing conditions are as follows: 0.25
million US dollars were paid at the signing of the agreement on 31 March 2016
and the rest of the purchase price is financed by a vendor note. According to
the agreement, 1.5 million US dollars of the vendor note is paid back in parts
on a monthly basis by the use of inventories mostly or totally during
2016, 5.75 million US dollars in July 2016, 1.0 million US dollars will be paid
12 months after the signing of the agreement and 1.0 million US dollars 24
months after the signing of the agreement. Okmetic records a non-recurring
profit of approximately six million euro based on the transaction.

The American company Epitek Silicon was created to focus on serving customers in
the high value-added epitaxial silicon wafer segment, and its owners are part of
the executive management of Silicon Quest International LLC (SQI). However, the
two companies will operate independently. SQI was founded in 1991 and it
supplies oxidation, sputtering and wafer reclaim services for the semiconductor
industry. SQI is not a competitor to Okmetic but they have some common
customers. Although the epi plant in Allen will operate as a separate company
from SQI both companies will benefit from more efficient use of space as well as
customer synergies.

In line with the agreement, Okmetic Inc. has transferred the plant to the buyer
on 31 March 2016. As a result of the sale the majority of the 43 employees of
Okmetic Inc., the US-based subsidiary of the parent company Okmetic Oyj, will
transfer to the service of Epitek Silicon. Okmetic Inc. continues as a North
American sales office as announced earlier.

Okmetic acquired Allen plant in 1999. The plant further processes the silicon
wafers manufactured at the company's plant in Vantaa by making an epitaxial
deposition on the surface of the wafers. In 2015, the net sales of Okmetic Inc.
were 12.3 million euros. Okmetic has agreed with Epitek Silicon that Okmetic
will deliver wafers for epitaxial deposition at least for five years time after
the transaction.

The sale of the Allen plant enables the company to focus on high value-added
silicon wafers in line with its strategy. "We are very pleased with this
acquisition, which will support the implementation of the strategic focus
defined earlier, as well as with being able to sell the plant to a buyer, who
will continue the operation of the plant. The change of ownership will not have
a significant impact on the business operations of our customers as the quality
of the products and operations will remain at the current, high level," says
President Kai Seikku.

Okmetic revises its guidance for net sales in conjuction with the transaction

Okmetic revises its guidance for the 2016 net sales based on the sale of the epi
plant.  In 2016, the net sales are estimated to decline from the level of 2015
and operating profit without non-recurring items to exceed the level of 2015.
According to the earlier guidance, the net sales and operating profit without
non-recurring items were estimated to exceed the level of 2015 in 2016.


OKMETIC OYJ

Kai Seikku
President


For further information, please contact:

President Kai Seikku
tel. +358 9 5028 0232, email: kai.seikku@okmetic.com

Senior Vice President, Finance, IT and Communications Juha Jaatinen
tel. +358 9 5028 0286, email: juha.jaatinen@okmetic.com



Okmetic supplies tailored, high value-added silicon wafers to be used in the
manufacture of sensors as well as discrete semiconductors and analog circuits.
Okmetic's strategic objective is profitable growth driven by a product portfolio
designed to meet customers' current and future technology needs. The core of the
company's operations is being genuinely close to the customers and understanding
their needs and processes.

Okmetic's global sales network, extensive portfolio of high value-added
products, in-depth knowledge of crystal growing, long-term product development
projects, as well as efficient and flexible production create prerequisites for
achieving the strategic targets. The company's headquarters is located in
Finland, where the majority of the company's silicon wafers is manufactured. In
addition to in-house manufacture, Okmetic has contract manufacturing in Japan
and China. Okmetic's shares are listed on Nasdaq Helsinki Ltd under the code
OKM1V. For more information on the company, please visit our website at
www.okmetic.com.



[HUG#1999626]

Attachments:

OKME0616_Sale of the Allen plant.pdf