Incap continues negotiations concerning bonds

EUR 1.1 million by 30 November and EUR 1.2 million by 31 December. The company planned at first to collect the funds for the redemption through a share issue in autumn 2012. Now, the company has decided to postpone the share issue to the year 2013 and investigated other tools to finance the redemption. The company is currently consulting with major shareholders, financiers and holders of the convertible bond with the target to find a proper solution for financing arrangement. Incap's management is confident about the successful arrangement in financing because major shareholders of the company have already expressed their support to the financing of the company. The financing position of the company will improve after the redemption of the convertible bond, because the second instalment of the additional loan granted by a Finnish bank (EUR 1.5 million) can be withdrawn based on the loan conditions after the redemption of the convertible bond and after the bank has accepted the achieved level of net IBD/EBITDA. The profitability of the company is estimated to improve further and according to the guidance given on 31 October 2012 the operating profit (EBIT) for July-December 2012 is estimated to be positive.