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Continuing Rationalisation at Perlos Results in 573 Job Losses in Finland

Perlos Corporation's on-going rationalisation programme covering all operations in Finland is proceeding according to plan. As a result of the co-determination negotiation completed this spring, the reduction need for permanent personnel in Finland was determined to be 573 persons.

The redundancies will be made in stages by the end of March 2007. The first stage took place in June, and until now approximately 270 persons have left the company. In the second stage, by the end of September, the total number of redundancies will be 88 persons in Northern Karelia. The rest of the personnel reductions will take place in December 2006 and March 2007 in Northern Karelia.

The centralisation of Perlos' painting operations in Northern Karelia is also proceeding according to plans. Operations at the Nurmijärvi painting shop will be terminated by the end of 2006. Redundancies at Nurmijärvi will be implemented in stages, with the majority of employee relationships coming to an end in November-December 2006.

All in all, Perlos Corporation's headcount including temporary workers was approximately 14,200 at the end of June, 2006. Of them, 2, 380 worked as permanent employees in Finland, of which approximately 2, 010 in Northern Karelia.

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