Stock Exchange & Press Releases 1998

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Elektrobit Group Oyj - JOT AUTOMATION GROUP INTENDS TO ESTABLISH A JOINT VENTURE IN ITALY

October 27, 1998

JOT AUTOMATION GROUP INTENDS TO ESTABLISH A JOINT VENTURE IN ITALY


JOT Automation Group Oyj and Uno-A-Erre Italia S.p.A. have entered an agreement in principle to establish a joint venture company. According to the agreement, the business operation of MGZ Automation, which is Uno-A-Erre Italia S.p.A's production automation unit, will be transferred to the new company. JOT Automation Group Oyj will own 60 % of the new company starting from the beginning of 1999. Uno-A-Erre will own 35 % of the share capital and the management of the new company will own 5 %. The name of the new company will be MGZ-JOT Automation S.r.l.

According to the agreement in principle, the automation unit's employees, research and development and production, including machinery equipment and materials, will be transferred to the new company.

'By this agreement the Group will expand its customer base and strengthen its market position in the middle of the most industrialised part of Europe. The joint venture will also increase our design and production capacity', says Jorma Terentjeff, president of JOT Automation Group Oyj.

MGZ Automation was established in 1984 and it has been a part of the Uno-A-Erre Italia S.p.A group since 1993. MGZ Automation designs and manufactures production automation equipment for the automotive, data communication and consumer electronics industries. MGZ Automation's gross sales were about 15 million FIM in 1997.

Uno-A-Erre Italia S.p.A founded in 1926. The multi-business group's turnover was about 3.7 billion FIM in 1997.

JOT Automation Group is specialized in the manufacturing and marketing of production automation for the electronics industry. The Group has subsidiaries in seven countries. The Group employs appr. 400 people and the net sales during the first six months in 1998 were FIM 168 million. The net sales in fiscal year 1997 were FIM 183 million. The company is listed in the Helsinki Stock Exchange.

Oulunsalo, October 27, 1998

JOT Automation Group Plc
The Board of Directors

Jorma Terentjeff
President, CEO