Glaston launches efficiency programme to improve profitability

GLASTON CORPORATION   Stock Exchange Release  30 October 2008 1 p.m.
Glaston launches efficiency programme to improve profitability

On 26 September, Glaston announced that it was initiating an
efficiency programme to improve profitability. The objective of the
programme is to improve the profitability of Glaston, and of its
Pre-Processing business area in particular, as well as to adjust the
company's operations to the market situation.

A maximum of 360 people - mainly in Italy, Finland and North America
- are within the efficiency programme. Most of the efficiency
programme will be implemented through temporary lay-offs. In
addition, the plan also includes reducing contract labour and
possible redundancies. The final level of the programme will be
determined in negotiations with personnel representatives.

The plan is estimated to generate approximately EUR 5 million in cost
savings on an annual basis. These will be realised in full from the
beginning of 2010. Upon implementation the efficiency programme will
incur an estimated EUR 6 million in non-recurring costs. In addition,
the company will recognise EUR 6 million in non-recurring costs for
agreements and for doubtful receivables made in previous years.

As the overall effect of the above-mentioned measures, Glaston will
recognise non-recurring expenses of EUR 12 million in the final
quarter of 2008. The cash-flow impact of these measures in 2008 and
2009 will total EUR 9 million, when implemented in full.

Owing to uncertainty in the operating environment and a slowdown in
the market, Glaston now believes that it will achieve its financial
targets in 2012 instead of 2010.
Glaston's financial targets are:
- Net sales annual growth over  8%
- Operating profit EBIT at least 10%
- Return on capital employed (ROCE) at least 20%
A telephone conference for analysts and press is arranged today at
1.30 p.m with President& CEO Mika Seitovirta and CFO Kimmo Lautanen.
The conference call phone number is +358 9 8864 7944. Access code not

Further information:
President & CEO Mika Seitovirta
Tel. +358 10 500 500

Glaston Corporation
Agneta Selroos
IR and Communications Manager
Tel. +358 10 500 6105

Glaston Corporation
Glaston Corporation is a growing, international glass technology
company. Glaston is the global market leader in glass processing
machines, and a comprehensive One-Stop-Partner supplier to its
customers. Its product range and service network are the widest in
the industry. Glaston's well-known brands are Bavelloni in
pre-processing machines and tools, Tamglass and Uniglass in safety
glass machines, and Albat+Wirsam in glass industry software.
Glaston's own glass processing unit, Tamglass Glass Processing, is a
local Finnish manufacturer of high quality safety glass products.
Glaston's share (GLA1V) is listed on the NASDAQ OMX Helsinki Mid Cap