Net sales of Cencorp Corporation in the second quarter will exceed 7 million euros. Profitability (EBIT) will however be in the lower level than previously expected over 8 percent. Profit will in any case be positive.

Terminations of employments decided in the statutory negotiations which ended on March 21, 2006 and reorganization of foreign subsidiaries caused one time costs which reduce the profit level of the second quarter. As a result of these reorganization actions company will reach annual fixed cost savings of EUR 2 million. Positive effect to profit based on reorganization savings will mainly begin on the second half of the year 2006. Furthermore, annual production costs will decrease EUR 1 million.

Company keeps whole year forecast, published on February 9, 2006 unchanged. Net sales are predicted to grow 6-12 % in 2006, and profitability (EBIT) is expected to total more than 8% of net sales.

Net sales to be emphasized to third and fourth quarter is mainly
based on growth potential in automation and testing products as a result of changes in businesses of Cencorp´s customers and seasonal variation of investments which is typical for production automation industry. Accelerative factor related to the growth in Cencorp´s automation and testing businesses in telecommunication industry is the fast growth of the amount of mobile phones to be sold annually. In car electronics industry growth factor is the amount of cars to be sold annually as well as the importance of electronics in the production value of a car is gradually increasing. Proportion of the electronics manufacturing services (EMS) companies will still increase in the future and level of automation in the production of EMS companies is explicitly increasing.

The fibre laser business is expected to account for more than 20% of Cencorp’s net sales in 2007.

The production automation industry, in which Cencorp operates, mainly consists of rather small manufacturers the size of Cencorp. In 2006, Cencorp will actively follow the development of the industry worldwide and also explore growth opportunities based on corporate restructurings.

Cencorp Corporation will publish interim report concerning second quarter on August 17, 2006.

In Virkkala, June 27, 2006

Cencorp Corporation

BOARD OF DIRECTORS

Further information:

Further information:
Petri Väinölä
President and CEO
Tel. +359 19 6610 215

Cencorp develops and supplies automation solutions to the
electronics and semiconductor industry that enhance productivity.

Distribution:
Helsinki Stock Exchange
Main media
www.cencorp.com

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