Semcon realigns its business in Sweden and introduces a cost-cutting scheme

Semcon realigns its business in Sweden and introduces a cost-cutting scheme

Semcon is realigning its business and starting negotiations with the unions
concerning the laying-off of around 300 people in Sweden. Simultaneously it is
introducing a cost-cutting scheme throughout the entire Semcon Group.

A continued uncertain market and reduced business volumes means that further
staff cuts have become unavoidable at the Swedish operation. It is mainly the
businesses in Göteborg and Trollhättan that are affected. MBL (Employment Act)
negotiations will begin with the union organizations.

At a development company like Semcon staff costs are the single largest cost,
which means the company must act quickly to realign the business if the order
intake falls radically. The financial turmoil and its impact on the economy has
included causing substantial uncertainty about the future with lay-offs and
Semcon's customers waiting to extend or start new assignments as a consequence. 

“We are forced to realign our business to the substantially receding demand from
certain parts of the market. Regarding the business at Trollhättan we have the
aim of immediately breaking off MBL negotiations regarding lay-offs if Saab
Automobile succeeds in the near future in finding a new ownership structure,”
says Kjell Nilsson, Semcon's president and CEO. 

The cost-cutting scheme to be introduced is expected to produce savings of
around SEK 15 million in 2009. It is estimated that the costs of the staff
lay-offs and cost-cutting scheme will have an SEK 40 million impact on the
results for the first half-year. 

“Despite the uncertainty on parts of the market and at various customers, the
demand for development and development-related services will continue to be
considerable in the long-term, even if a slackening off occurs in a short-term
perspective,” concludes Kjell Nilsson.

For more information, please contact: 
Kjell Nilsson, CEO, Semcon AB, +46 (0)702 60 01 21 
Björn Strömberg, CFO, Semcon AB +46 (0) 708 35 44 80
Anders Atterling, IR & PR Manger, Semcon AB, +46 (0)704 47 28 19 

This information is such that Semcon AB must publish according to laws governing
the securities market and/or laws governing trading in financial instruments.
This information was published at 10:20 a.m. on 5 March 2009