Updated earnings expectations for 2008

NASDAQ OMX Copenhagen Nikolaj Plads 6 DK-1007 Copenhagen K 6 February 2009Release No. 4Updated earnings expectations for 2008As notified in stock exchange announcement no. 22 of 18 December 2008, thepresent announcement contains an updated earnings forecast for 2008 along withdetails of further restructuring measures. We can now confirm that forecast 2008 earnings both for the NKT Group and forthe individual business segments remain in line with the last reported figures.This means that the Group's overall net income before tax and afterrestructuring costs is still estimated at just under 600 mDKK. Developments in liquidity in the year's final months were similarly as planned,and forecast net interest bearing debt at the end of 2008 is just short of 2.3bnDKK. The 2008 annual accounts are currently being compiled and audited. The final,audited annual report for 2008, including earnings expectations for 2009, willbe published on 5 March 2009. Changed procedure for reporting of earnings expectationsThe NKT Group has in recent years published detailed earnings projections bothat Group level and for the individual business segments. We now consider thatwhile macroeconomic and financial market conditions remain as uncertain andvolatile as is currently the case this procedure is inappropriate. Accordingly,when published on 5 March 2009, statements for 2009 will be less detailed, butwill continue to adequately describe the conditions and uncertainties on whichthe calculation is based. The annual report will also contain extensivedescription of the risks relating to each business segment. It must be emphasized that the future reporting of realized results will not beaffected by the change in procedure. It remains our intention to provideinvestors and other users of our financial statements with detailed insightinto the NKT Group. Cash resourcesNKT's interim financial statement for the 3rd quarter published on 24 November2008 contained a detailed description of the Group's capital structure and cashresources. From this description it is evident that the cash resources arewholly adequate. In order to further strengthen the Group's cash resources the Group Managementhas focused on raising long-term mortgage finance relating to NKT Cables' newfactory in Cologne. At the start of February, firm loan approvals were receivedthat will reinforce the Group's cash resources by an additional 500 mDKK. Structural initiatives Since August 2008, in step with the changing market conditions, NKT Cables andNilfisk-Advance have introduced a number of structural initiatives andadjustment measures. As previously reported, NKT Cables has shed 300 production and sales jobs inits low voltage cables business, around 10% of the total staff. The productprogramme for this customer segment has also undergone minor rationalization.This has resulted in restructuring costs of 75 mDKK, which are included in ourearnings forecast for 2008. When published, the earnings projections for 2009 will not include furtheradjustment measures relating to NKT Cables. However, any further deteriorationin market conditions will lead to additional measures being introduced, detailsof which will be provided. Nilfisk-Advance too implemented organizational adjustments last autumn aimed atreducing the number of employees to around 4900 at the end of 2008 by shedding300 jobs. As previously reported, a number of structural measures have alsobeen carried out. This has resulted in restructuring costs of 50 mDKK, whichare included in our 2008 earnings forecast stated earlier in this announcement. When published, the 2009 earnings projections for the NKT Group will containcosts of around 150 mDKK for structural initiatives in Nilfisk-Advance,comprising 25 mDKK relating to the activities begun in 2008 and 125 mDKKrelating to new activities. The initiatives include further organizationaladjustments aimed at reducing employee numbers to around 4,700. In addition, anumber of plans for consolidation of production have been moved forward. Theseplans entail further transfer of production from high-wage to low-wagecountries, and include further expansion of the production entities in low costcountries. As part of these plans, global adjustments will also be made to thecompany's distribution and logistics infrastructure. The reduction of employeesto around 4,700 are expected to improve earnings by around 90 mDKK in 2009,whereas the current structural initiatives are not expected to have positiveinfluence on earnings until 2010 onwards. The structural initiatives referred to are all intended to safeguard andstrengthen the future of the NKT Group's business segments. Maintaining thelevel of investment in product development is a significant element in this andwill remain unchanged for the time being. ContactPlease address any questions concerning the information in this announcement tothe undersigned on telephone +45 4348 2000 Yours faithfully NKT Holding A/SThomas Hofman-BangPresident and CEO