Vacon to acquire AC drives<br>business of TB Wood’s

After the acquisition, Vacon will have sales on all continents, and R&D and production on three continents. The transaction includes two factories in the United States, one factory in Italy and one in India, and a sales company in Germany. The aggregate purchase price will be USD 29.0 million. The aggregate purchase price is USD 29.0 million, and Vacon will finance the acquisition with debt. TB Wood’s AC drives business will be merged into Vacon Group, and TB Wood’s personnel who are part of that business will become Vacon employees. It is planned to incorporate the acquired business into Vacon’s consolidated financial statements by the end of January 2008 at the latest. The acquisition is not expected to have a material impact on Vacon Group’s earnings per share in 2008 and 2009. The boards of directors of both companies have unanimously approved the acquisition, which is subject to customary closing conditions. Vacon and TB Wood’s have cooperated for more than ten years. TB Wood’s has sold Vacon AC drives under their own brand as part of their product range, and the company has also been Vacon’s authorized service centre in the United States for many years. TB Wood’s brand will be replaced by the Vacon brand over a transition period of 18 months.