POTENTIAL CLOSURE OF KONGSBERG AUTOMOTIVE`S FACTORY IN ÅMOTFORS

The Board of Directors of Kongsberg Automotive Holding has today instructed the legal Swedish operation to start union negotiations for closing the Åmotfors factory. The company need to realise cost savings due to the persistent margin pressure in the European automotive industry. The Board recommends that the production in Åmotfors shall be transferred to the company`s production facilities in Poland. `We are one of the world`s leading suppliers of seat heating systems for cars. To maintain this position we must adapt our production costs to a level which yield acceptable earnings also in future`, says Chief Executive Officer, Olav Volldal. The factory in Åmotfors has 90 employees, and the workforce will be informed at meetings today. The risk for closure has been communicated since June this year. `I very much understand the sense of uncertainty being felt by our personnel at Åmotfors`, says Mr. Volldal. `Our people have done a fantastic job to improve productivity, quality and on-time deliveries. The potential closure is not because our employees have not performed. It is due to the significant cost gap between high cost and low cost countries. It is important that we continue the current good collaboration between all parties involved in the discussions that will now be initiated.` Note about the company; Kongsberg Automotive is a world leading supplier of seat comfort products as well as automotive driveline and chassis systems. The company has operations in twelve countries on four continents. The company`s customer portfolio comprises more than fifty vehicle manufactures. The Group has approximately 2,800 employees and annual sales of about NOK 3 billion. Press Enquiries: Managing Director Sweden, Magnus Biesse, +46 392 38128 Chief Executive Officer, Olav Volldal, +47 32 77 05 00