Vacon opens subsidiary in Chennai, India

Vacon Group                                                    PRESS RELEASE

                                                               January 23, 2007




Vacon opens subsidiary in Chennai, India


The Finland-based AC drives manufacturer Vacon strengthens its global presence by
opening a subsidiary in Chennai on the southeast coast of India. The grand office
opening will be celebrated on January 24, 2007 with invitees representing the
company, customers and cooperation partners. With a subsidiary in one of India's
largest commercial and industrial centers, Vacon will further improve its service
in the growing markets of the Asia-Pacific region.

"Local presence in India's growing markets is essential for us, and many of our
customers and cooperation partners find it necessary. India's electricity
consumption is one of the highest in the world, and therefore, the country offers
a lot of market potential for us. We are eager to continue building the Vacon
brand as well as our sales and distribution network, and to provide product
support in a country where the benefits of AC drives are not yet very widely
known," says Mr Heikki Hiltunen, Executive Vice President, Vacon.

Vacon operates on its own or through partners in 100 countries. Taking more
foothold in India follows closely Vacon's strategy of increasing its global
presence. "We plan to build a solid sales and distribution organization with a
skilled product support in the fragmented and highly competitive Indian AC drives
market. We have highly experienced local personnel, and Vacon is very committed
to and focused on one single line of business. I'm convinced that we will do well
in India," says Mr Hiltunen.

Despite its large annual energy production, India is a net energy importer.
Overall, India's need for power is growing at a prodigious rate. Annual
electricity generation and consumption have increased enormously in the past
decade, and its projected rate of increase for electricity consumption is one of
the highest in the world.

Vacon in brief:
Vacon Group was founded in 1993 for one purpose only: to create, develop and
provide AC drives worldwide. The company's ambition is to meet the most demanding
needs of customers looking for the ultimate in performance, ease of use and
reliability. Vacon offers AC drives in the power range of 0.25 kW...5 MW. In
2005, the Group revenues totalled EUR 149.9 million.

Vacon Group

Further information:

Mr Heikki Hiltunen, Executive Vice President, Products and Markets, Vacon Group,
mobile +358 (0)40 8371 609

Press contact:

Ms Catarina Fant, Director, Brand Management and Communications, Vacon Group,

phone +358 201 212 276, mobile +358 (0)40 8371 276,

e-mail catarina.fant(at)vacon.com

www.vacon.com