NOTE takes the next step in its strategic transformation

NOTE takes the next step in its strategic transformation 

Last autumn, NOTE started up new joint venture plants in China and Poland to
increase its production capacity in cost-efficient countries. Transferring
labour-intensive production to these countries is a natural step to create
cost-efficiency for the customers. As a consequence, NOTE is issuing redundancy
notices to a total of 124 employees in Sweden.


“Since early 2006, we have worked extensively on our unique forward-looking
Nearsourcing business model, targeting a combination of volume growth and
cost-efficient production for our customers. Our intention is to increase
profitability, while simultaneously reducing the risks of our operations. These
activities intensified after our new Board was appointed last spring,” commented
Arne Forslund, NOTE's CEO and President.

“We increased our production capacity further last autumn, by starting up joint
venture plants with Philippine EMS provider Ionics EMS in China and Fideltronik
in Poland,” continued Mr. Forslund, “we've now built up the capacity and skills
for continued growth, and to relocate more labour-intensive production to
cost-efficient countries. Thus the headcount downsizing we are now conducting in
our Swedish facilities at Skellefteå, Norrtälje, Skänninge and Lund is one
consequence of our long-term strategy”.

“NOTE's profitability have grown briskly in recent years. We expect the current
headcount downsizing to be progressive over forthcoming quarters. The savings
should generate their full profit impact and exert a positive effect on margins
as early as this autumn.”"The trend towards increased outsourcing of electronics production is a strong
one, and we expect it to offer good growth opportunities on existing markets.
Consistent with the start-up of our Nearsourcing operation in NOTE Oslo, we
also intend to increase our presence on new geographical markets, which will
contribute to further growth in the long term,” concluded Mr. Forslund. 

For more information, please contact: 
Arne Forslund, CEO & President, tel. +46 (0)8 568 990 07, +46 (0)70 547 74 77
Henrik Nygren, CFO, tel. +46 (0)8 568 990 03, +46 (0)70 977 06 86

About NOTE 
“Our business concept is to produce electronics from design to after-market
close to our customers.”
NOTE is one of the Nordic region's leading contract manufacturers of electronics
and is established in Sweden, Finland, Norway, the UK, Estonia, Lithuania,
Poland and China. Net sales for 2006 totalled SEK 1,742 m, and the NOTE group
has approximately 1,200 employees. Read more at: www.note.se