SCANFIL PLC LOOKS INTO INTESIFYING ITS FINNISH OPERATIONS AND PROVIDES

| Source: Sievi Capital Oyj Sievi Capital Oyj 

SCANFIL PLC    STOCK EXCHANGE RELEASE  25 JANUARY 2007 1.30 pm

SCANFIL PLC LOOKS INTO INTESIFYING ITS FINNISH OPERATIONS AND PROVIDES
PRELIMINARY INFORMATION ON THE 2006 RESULT AND THE OUTLOOK FOR 2007

Scanfil plc will initiate statutory employer-employee negotiations
concerning its Äänekoski and Oulu plants, Group administration and the
salaried employees of its Sievi units due to production and financial
reasons and business restructuring.

To make the company more competitive and cost-effective, there are
plans to relocate the remaining production activities of the Oulu
plant and the production activities from the Äänekoski plant to the
Group’s other plants. Since demand and production continue to
concentrate on developing markets and lower-cost countries, operations
in Finland need to be adapted to take account of the market situation.
With respect to Group administration and the salaried employees of the
Sievi units, this means the reorganisation of operations in order to
improve efficiency.

The negotiations will apply to a total of 183 persons. Potential
effects on the employees will become clearer during the negotiations.
The representatives of the various personnel groups were invited to
the negotiations today, on 25 January 2007.

PRELIMINARY INFORMATION ON THE 2006 RESULT

Scanfil plc’s turnover for 2006 is approximately EUR 241 million and
operating profit is expected to be about on the level of 4.5%
including non-recurring items. The figures are unaudited. Scanfil will
publish its financial statements for 2006 on Friday, 16 February 2007.

OUTLOOK FOR 2007

Major restructurings in the telecommunications sector resulted in
weaker demand in the last quarter of 2006, and they are also expected
to affect demand in early 2007. Insecurity in the market has
increased, and there has been a further decrease in predictability.
Based on the present comprehension, Scanfil plc’s sales for 2007 are
expected to fall a little short of the 2006 level. Profitability for
the full year is estimated to be at a satisfactory level.

Scanfil plc concentrates in the year 2007 maintaining and improving
profitability as well as developing operations cost-effectiviness.


SCANFIL PLC

Veli Torvinen
President


For more information, please contact:
President Veli Torvinen
Tel. +358 40 5510 665



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