Semcon strengthens its position in active regions

Semcon strengthens its position in active regions. The acquisition of the Pelmatic Group represents an important step in Semcon's efforts to continue to grow and reinforce its position as the leading development company in Scandinavia. The acquisition will mean that Semcon will grow by about one hundred new highly skilled employees in the interesting Öresund and Karlskrona-Ronneby regions. Pelmatic currently has sales of about 100 million SEK, and Semcon expects to be able to double that figure within three years. "The acquisition of Pelmatic is an important step in our campaign to continue our rapid growth," says Hans Johansson, the Managing Director of Semcon. Overnight this gives us leading edge capability in several strategic areas, as well as a significant presence in southern Sweden and Denmark. Pelmatic currently has sales of about 100 million SEK, with low profitability in certain areas. We expect to be able to quickly turn things around in those areas. Together, we will reorganise parts of the business, focus on the market, prioritise and invest. By partially renewing the composition of management and integrating the Swedish operations of both companies, Semcon expects to achieve a rapid improvement in profitability. Pelmatic was started in 1980, the same year as Semcon was established, and currently employs about one hundred consultants work for the Pelmatic Group. Semcon's operations complement Semcon's Industrial Design and e- design areas. We will obtain interesting leading edge expertise in analysis and calculation, which will mean that Semcon ATC, with its approximately 45 employees, will now become the undisputed dominant Scandinavian company working in advanced analysis and calculation. We will also obtain an exciting addition in VR (virtual reality) technology in Västerås that originated from Prosolvia. This acquisition will provide Semcon with access to interesting new geographic markets in the expansive Karlskrona-Ronneby area, one of the hottest IT and telecom regions in Sweden. The acquisition also includes the subsidiary, Pelmatic Knud E. Hansen of Copenhagen, one of the world's leading companies in marine technology planning. "Pelmatic Knud E. Hansen is a well-run company with good profitability, an excellent reputation, international experience and a global list of customers. It is a perfect complement for Semcon," explains Hans Johansson, who also underscores that this acquisition can allow Semcon to quickly build up a strong presence in Denmark. We are both strengthening our position with Semcon's present customers, and opening new opportunities for Pelmatic's former customers. This provides us with an opportunity to offer Semcon's entire range of services and benefit from long-term relationships and the confidence that comes from customer satisfaction. The acquisition is in line with the trends developing in our industry, where customers are choosing to buy more services from a smaller number of primary providers with whom the maintain close cooperation. For additional information, please contact: Hans Johansson, Managing Director, Semcon AB, phone +46 (0)31-721 08 66, cellular +46 (0) 70-591 43 34 Mats Werne, Business Development, Semcon AB, phone +46 (0)42-12 75 90, cellular +46 (0)70-540 10 10 Mikael Gustavsson, Business Development Semcon, phone +46 (0)31-721 00 00, cellular +46 (0)70-310 33 37 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/05/22/20000522BIT00820/bit0001.doc http://www.bit.se/bitonline/2000/05/22/20000522BIT00820/bit0002.pdf