EG Components to break up with KOA

EG Components will no longer distribute KOA's passive components in the Nordic. Allthough EG Components will remain as sales agency for KOA in the Nordic. KOA will from March 1 run its distribution from its centre in Hamburg, Germany. EG Components has during the last five years lost about 80% of its market for passive standard components in the Nordic since the volume manufacturing of electronics has been moved offshore. EG Components therefore doesn't see any profitability in distributing passive standard components in the Nordic and has now terminated its distribution agreement with KOA. As a result of the change in business focus the company has during the 4th quarter of 2005 made some reductions in workforce and according to EG Components Manager Ulf Sjunnesson the company is likely to go through additional workforce adjustments.