The initiatives will affect the 2nd quarter with one-off costs of NOK 35 million. This is done to increase the company’s efficiency and maintain the strong position within the embedded market, which is expected to continue as a strong growth market in the coming years.

The one-offs in the 2nd quarter are mainly related to efficiency initiatives within the Danish operation, reduce workforce overcapacity within the group, as well as accruals for expected losses on trade receivables and extraordinary costs related to completion and delivery of large solutions projects.

During the second half of 2009 the company will:
Strengthen the international sales- and supply-chain management within the company’s growing solutions segment. Implement further cost efficiency initiatives in completion and deliveries of solution projects. Strengthen the capacity and competency within project management. Continue and enhance activities to reduce the general cost level

The company expects that the initiatives described above will result in a cost reduction of approx. NOK 40 million on an annual basis with full effect from the 4th quarter 2009. In addition, these initiatives are expected to contribute to maintaining the long-term growth target of 20 %.