Termination of production in Germany

Nefab has decided to shut down the production unit in Germany. Production will be transferred to the newly established unit in Slovakia and to current units in Sweden and France. The closure will be carried out during the second and third quarters of 2005 and affects about 30 employees. The market efforts by the German company will continue unchanged. The decision is based on an aim to reduce production costs by transferring labour intensive operations to low-cost countries. At the same time the units in Sweden and France will focus their business on more automated production. ”When this decision is implemented, we will have approximately 50% of the European production of export packaging in so called low cost countries”, says Lars-Åke Rydh, President of Nefab. ”The units in Estonia and Slovakia are also well located logistically, since a growing number of Nefab’s customers are moving their production to this part of Europe.” Nefab’s vision is to be the global partner for complete packaging solutions. The products are delivered to customers in more than thirty countries. Following this change, Nefab has production units in Sweden, Estonia, Slovakia, France, Spain, Canada, Brazil and China. For further information, contact President Lars-Åke Rydh, +46-70-592 45 70, e-mail lars-ake.rydh@nefab.se, or CFO Anna Stålenbring, +46-70-814 23 44, e-mail anna.stalenbring@nefab.se Jönköping, January 17, 2005 Lars-Åke Rydh President and CEO