HMS is initiating a cost reduction program and reducing staff in Halmstad due to weak market conditions

HMS Networks AB (publ) has today issued a notice of termination of
employment to 16 employees at the Company's facility in Halmstad. The
downsizing is a direct result of the continuing weak demand.

As previously informed on April 2, 2009 HMS is facing a period with
decreasing demand. All markets except China show a decrease. The
biggest decrease is recognized in Japan where the automation industry
is affected both of a weak market and a material strengthening of the
Japanese currency. On the US market sales volumes are more stable
just below sales volumes for the same period last year.

- During the last months we have moved production volumes back from
sub-suppliers to our manufacturing facility in Halmstad, we performed
internal education programs and other activities hoping for a
strengthening of the market situation. Unfortunately we now have to
realize that the market situation is still weak and that our sales
volumes have reached a level where we have react and take these
measures, says Staffan Dahlström, CEO.

Discussions with relevant unions will be initiated immediately to
accomplish the downsizing as soon as possible.

- In the present market situation we have to adjust expenses and
personnel. It is important to communicate the final decision to the
employees as soon as possible, but we have to consider the fact that
the negotiations must be carried out thoroughly and in a trustful
climate of negotiation, says Staffan Dahlström, CEO.

For further information please contact:
CEO Staffan Dahlström,  +46 35 17 29 01
CFO Gunnar Högberg, +46 35 17 29 95


Press pictures and background information for editorial use can be
downloaded under "Press" at http://investors.hms.se.


HMS Networks AB (publ) is a world-leading supplier of communication
technology for industrial automation. Sales for 2008 grew by 17% to
SEK 317 million. Over 90% of these sales were to customers located
outside Sweden. All development and the major portion of
manufacturing is carried out at the head office in Halmstad. Sales
offices are located in Japan, China, Germany, the USA, Italy and
France. HMS has 155 employees and produces network interface cards
and products to interconnect different networks under the trademark
Anybus®. The network interface cards are embedded in automation
equipment such as inverter drives, robots, control systems and
sensors. This allows subcomponents in machines to communicate with
one another and with different networks in order to build more
efficient and flexible automation systems with reduced energy
consumption.

In 2008 HMS was presented with Sweden's "Best export company" award
by H.M. the King of Sweden and HMS has had an average growth of 30%
year-on-year over the past ten years. HMS is listed on the NASDAQ OMX
Nordic Exchange in Stockholm in the Small Cap, Information Technology
sector.