NKT Cables acquires Chinese high voltage cable factory

NASDAQ OMX Copenhagen Nikolaj Plads 6 DK-1007 Copenhagen K 14 September 2009Release no. 13NKT Cables acquires Chinese high voltage cable factoryNKT Cables has signed a final purchase agreement with Xinhua Cables Group for a100% takeover of Xinhua's high voltage cable factory in Hejian City, located inthe Chinese province of Hebei. The agreement should be seen in connection withthe stock exchange announcement no. 7 from 26 March 2009 and the subsequentnotice in NKT's second interim report dated 25 August 2009. The acquisition is part of NKT Cables' strategy for expanding its presence onthe growing Chinese market. China is now the most rapidly expanding businessarea for NKT Cables, driven by considerable investments in the infrastructurefor power supply and transport. The acquisition should be seen in the contextof NKT Cables' current presence in China, where they produce and sell mediumvoltage cables and overhead catenary systems for high speed trains. NKT Cables expects to close the transaction no later than 1 January 2010, andthe intervening months will be used to put the final formalities in place andto complete due diligence examinations. The cable factory is relatively newlyestablished and NKT Cables knowhow, references and accessories assortment will- in combination with the acquired high voltage cable manufacturing competences- constitute a compelling offering to the market. The factory has three mainproduction lines and can produce and test cables up to 500 kV. PerspectivesNKT Cables has had a presence in China for almost 15 years and in this periodNKT Cables has developed a production and sales platform with considerableexpertise, particularly in medium voltage cables and accessories, as well ascatenary wires for high speed trains. These activities are expected to resultin sales worth more than 100 mEUR in 2009. The acquisition of Xinhua Cables supplements this platform with productioncompetences for high voltage cables up to 500 kV. Based on the expectedexpansion of the Chinese transmission grid and steadily growing urbanisation,this acquisition is expected to provide support for growth in China of 50% inthe coming years. Financial conditionsNKT Cables' investments in association with the acquisition comprise a cashtotal of around 150 mDKK. The investment does not affect NKT's forecast results for 2009 which were lastpublished on 25 August in NKT's second interim report for 2009.Please direct any enquiries to the undersigned on telephone no. +45 4348 2000.Yours faithfully,NKT Holding A/SThomas Hofman-BangCEO