NEOMARKKA IS INVESTING CLOSE TO EUR 20 MILLION IN CABLE PRODUCTION IN RUSSIA

Neomarkka is investing in the cable factories in Russia through its subsidiaries. The acquisition of OAO Expocable enabled further development of the factory area in Podolsk. Podolsk is situated round 50 kilometres south of Moscow center, the main market of Russia. Neomarkka has decided on total investment of close to EUR 20 million to enlarge and develop its cable production in Russia. The amount includes machine and equipment purchases, enlargement of the production buildings, changes in the factory area and the acquisition of OAO Expocable.

"The investment turns the Reka Cables´s factory in Podolsk into full scale medium voltage production plant and we can better participate in the growth of medium and high voltage cable market growth in Russia", says Neomarkka´s Managing Director Markku E. Rentto. "At the same time we renew the machines, equipments and processes of Expocable. The total investment decision opens the way to further increase the product range and volume, to make more effective processes and logistic solutions and to make good use of the synergies."

The purchases of the machines and equipments, enlargement of buildings and changes in the factory area will start immediately. Part of the changes in the factory area will be completed already during this year. The expansion will be finalised during fall 2009.

The investment supports the new strategy of Neomarkka to invest in industrial companies with similar synergic benefits and to develop those companies.

Moskow 12.8.2008
Neomarkka Plc

Markku E. Rentto
Managing Director

FURTHER INFORMATION:
Markku E. Rentto, Managing Director, tel. +358 207 209 191

DISTRIBUTION
OMX Nordic Exchange Helsinki
Main media
www.neomarkka.fi

Neomarkka Plc is an investment company that invests mainly in industrial companies with similar synergic benefits. The aim of investments is with active ownership to develop the purchased companies and establish additional value. Neomarkka owns Reka Cables, which manufactures installation and power cables, and OAO Expocable, which manufactures steering and instrumentation cables, and has 30% ownership of Nestor Cables Ltd, which produces communication cables. Neomarkka´s B shares are listed on the OMX Nordic Exchange Helsinki main market.