SEM, a subsidiary of Opcon, will supply ignition cassette replacements to Saab

Opcon’s subsidiary, SEM AB of Åmål, is a supplier of ignition cassettes to Saab and is affected by Saab’s announcement that it is recalling around 288,000 cars. Due to the increased requirement for ignition cassette replacements, Saab and SEM have signed a delivery agreement that contains details of delivery volumes, delivery times and prices. For Opcon, this agreement means that the increased production of ignition cassettes has been secured financially, and that Opcon will be able to supply the ignition cassettes according to plan. The requirement to increase deliveries to Saab during a strictly limited period sets a considerable organisational challenge for SEM. In order to meet new production targets, SEM has therefore decided that previously announced job layoffs will not be carried out. The need to reduce staff numbers at SEM in Åmål has been caused by the gradual increase in production of small ignition systems at Opcon’s factory in China. Opcon’s next quarterly report will be released on 20 October 2005. For further information, please contact: Rolf Hasselström, President and CEO of Opcon AB, tel. +46 8 466 45 12 or +46 70 594 79 60 Svein Valheim, vice President of Opcon AB and President of SEM AB, tel. +46 532 611 64 or +46 70 678 22 17 Göran Falkenström, vice President and CFO of Opcon AB, tel. +46 532 611 22 or +46 70 330 05 02 Opcon AB, Box 30, S-662 21 Åmål Tel. +46 532 611 00, fax +46 532 120 19 e-mail: info@opcon.se www.opcon.se