Efore Plc estimates the net sales of the telecom business

EFORE PLC Stock Exchange Release April 27, 2018 at 12.45 p.m.

Efore Plc estimates the net sales of the telecom business in the first half of 2018 to be lower than in previous year, negotiates structural arrangements of its telecom business and plans rights offering

The net sales of the telecom business in the first half of 2018 is estimated to decrease materially from the corresponding period in 2017. Furthermore, the net sales of industrial sector in the first half of 2018 is estimated to be slightly lower than on the corresponding period last year.

As earlier announced (Stock Exchange Release Feb. 14, 2018), Efore investigates different structural alternatives to secure the long-term profitability of the telecom business. Efore plans to incorporate its telecom business as a separate company with a target to establish a joint venture where in addition to Efore there would be also another owner from the same industry. The purpose of the structural arrangement is to expand the telecom sector product portfolio to the current and new customers as well as strengthen the resources available. Negotiations related to the arrangements are ongoing with different companies in this business. The target is that the decisions related to the matter have been made by the end of September 2018.

As announced on April 11, 2018 Efore has proposed rights offering to the Extraordinary General Meeting on May 3, 2018. With the rights offering Efore aims to improve the capital structure and strengthen the working capital of the company. This would also enable longer term active development of other Efore businesses than telecom.

Due to the net sales development during the first half of 2018 and planned structural arrangement of telecom business as well as due to strengthening the capital structure and development of other businesses, Efore does not at the moment give earnings guidance for the full year 2018.

EFORE PLC

Jorma Wiitakorpi
President and CEO

For further information please contact Mr. Jorma Wiitakorpi, CEO, on tel. +358 40 175 8510.

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Nasdaq Helsinki Oy
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Efore Group

Efore Group is an international company which develops and produces demanding power products. Efore's head office is based in Finland and its sales, marketing and product development units are located in China and Europe. In addition, the group has a sales and marketing unit in United States. In the fiscal year ending in December 2017, consolidated net sales totaled EUR 69.9 million and the Group's personnel averaged 432. The company's share is quoted on the Nasdaq Helsinki Ltd. www.efore.com