NKT Cables expands Chinese production of high voltage cables

NASDAQ OMX Copenhagen Nikolaj Plads 6 DK-1007 Copenhagen K 26 March 2009Release No. 7NKT Cables expands Chinese production of high voltage cablesNKT Cables has today signed a conditional agreement with a Chinese partnerconcerning sales and production of high voltage cables in China. The agreementprovides for the establishment during the months ahead of a joint venturecompany owned 51% by NKT Cables and 49% by the Chinese partner. Scope of agreementUnder the agreement the joint venture company will acquire an existing highvoltage cable factory. The factory consists of a plant that hitherto has beenoperated by a separate company belonging to the Chinese partner. The factory isnewly established and entered service relatively recently, and the acquisitionwill therefore not include current activities or commitments. The operation ofthe cable factory by the joint venture company is not expected to commenceuntil 4th quarter of 2009. The establishment of the joint venture company and the transfer of the cablefactory are conditional upon successive fulfilment of various compliance issuesover the months ahead, including regulatory approvals. The final decision oninvestment is further conditional upon NKT Cables' completion of due diligenceenquiries. Financial aspectsThe investment by NKT Cables with regard to establishment of the joint venturecompany and transfer of the cable factory is expected to amount to a cash sumof around 80 mDKK that can be contained in the Group's existing capitalresources. The investment will not affect NKT's earnings forecasts for 2009 announced inthe NKT 2008 Annual Report issued on 5 March 2009. PerspectivesWe view this cooperation as a unique and attractive way of creating a footholdfor NKT Cables in the expanding Chinese market for high voltage cables (> 110kV). The investment must also be viewed in context with NKT Cables' existing Chinesesales and production of medium voltage cables and catenary wires for high speedtrains. A stock market announcement will be issued, when establishment of the jointventure company and transfer of the cable factory are finally completed. Please address any questions concerning the contents of this announcement tothe undersigned on telephone no. +45 4348 2000. Yours faithfullyNKT Holding A/SThomas Hofman-BangPresident and CEO of NKT Holding A/S