Semcon closing down unprofitable parts.

Semcon closing down unprofitable parts. Competence Development business area to be reorganized. Full year's results affected. The Board of Semcon AB (publ.) has decided that negotiations should start with the appropriate unions about closing down the unprofitable parts of Competence Development. Semcon intends to start closing these down during the current year. The business area accounts for 8 % of total turnover. The background is that the market for publicly financed training schemes has dramatically declined. The requirements for running a long-term profitable activity are therefore missing. Semcon will do everything possible to try and transfer the affected employees to other business areas. Employees who leave the company will be offered individual guidance. Semcon will complete all its undertakings with its customers. The successful part of Competence Development that concentrates on industry will continue to be run in Semcon's other business areas. It is estimated that the closing down, including the losses announced already, will see SEK 42 million charged to the full year's results. Semcon's nine-months report will be published on the 24 October. For further information please contact: CEO Hans Johansson, tel: +46 (0)31-721 03 05, mobile: +46 (0)705-91 43 34 CFO Bengt Nilsson, tel: +46 (0)31-721 03 11, mobile: +46 (0)704-47 28 68 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/10/19/20001019BIT00880/bit0001.doc http://www.bit.se/bitonline/2000/10/19/20001019BIT00880/bit0002.pdf