NKT Cables - new high voltage factory in Cologne

The Nordic Stock ExchangeNikolaj Plads 6	DK-1007 Copenhagen K26 November 2007Announcement no. 24NKT Cables - new high voltage factory in CologneNKT Cables' plans to expand its high voltage activities will now be stronglyaccelerated following a decision to move the Cologne-based activities to a newsite (also in Cologne) close to the river Rhine.  At this site plans to build astate-of-the-art plant for the manufacture of high voltage cables will now berealised. At the same time an agreement to sell NKT Cables' existing productionpremises in Cologne has been signed. This sale provides basis for the NKT Groupexpectations for 2007 to be revised upwards to around 1 bn. DKK. Moving to the new Cologne site opens up for totally new facilities to beestablished for the future manufacture of high and medium voltage cables,fiber-based monitoring cables, OPGW (Optical Ground Wires) superconductingcables and metal based products. The purpose of the relocation is to create anadvanced, new production facility - created on the basis of the unique know-howpossessed by the organisation in Cologne - that can meet the growing need fornew cable solutions relating both to sustainable energy and to more efficientutilisation of transmission and distribution networks worldwide. Agreements, investment framework, and income from sale of propertyAgreements have been made for NKT Cables to build on an 84,000 m2 site inCologne that is part of a large industrial park belonging to the Bayer group.An important element in the choice of this location is that NKT Cables willgain direct access to port facilities on the Rhine. The investment in new production facilities is expected to amount to around750-850 mDKK in the period 2008-2010. The sale of the company's existing domicile - a 126,000 m2 building inSchanzenstrasse - will have a positive effect on liquidity of around 260 mDKKand generate income before tax of around 60-70 mDKK effective in 4th quarter2007. This amount must be added to the NKT Group's expectations for 2007, comprisingearnings before tax of around 925-950 mDKK as published in our Interim Reportfor 3rd quarter 2007 (Stock Exchange Release No. 22). Consequently, ourexpectations for 2007 are revised upwards to around 1 bn. DKK. Agreement has been reached with the buyer of the Schanzenstrasse property forNKT Cables to rent its existing production and office facilities for a coupleof years while the new factory is being established. Retention of know-how and potential for business expansionSeveral contractual agreements still await formal conclusion. But assuming allcontracts are finalised and signed, NKT Cables will commence the establishmentof the company's new production facilities and start planning the relocation ofits 500 employees at the start of 2008. As the new factory will be only arelatively short distance from the existing plant it will be possible to retainthe special skills and crucial know-how possessed by the Cologne organisation. The location on the Rhine will open the way for a considerable simplificationof transport arrangements for the large, heavyweight cable shipments, and anumber of possibilities also exist for expanding the company's existingbusiness base - for example, with the manufacture of offshore cables based onnew cable technologies. The new plant is planned to come on stream in 2nd quarter 2009, with transferof production from the existing facility to the new facility being completed inautumn 2010. NKT Cables' future production capacity for high voltage cableswill be significantly enlarged as a result of the new plant. Further informationA press notice from NKT Cables is available on www.nkt.dk under press releases. Read about NKT Cables at www.nktcables.comShould you require further information, please contact the undersigned ontelephone no. +45 4348 2000. Yours faithfullyNKT Holding A/SThomas Hofman-BangPresident and CEO