NNE ANNOUNCES LAY-OFFS IN DENMARK

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NNE ANNOUNCES LAY-OFFS IN DENMARK
07 October 2003 - NNE A/S

At an extraordinary information meeting for employees today, Hans Ole Voigt, general manager of NNE (Novo Nordisk Engineering), announced that 120 positions are being eliminated before the end of the month due to a decline in turnover.

It has been known for some time that NNE's turnover in 2003 will not reach last year's record turnover of 1.13 billion Danish kroner. At short intervals NNE has concluded and delivered two major building projects to Novo Nordisk, each costing several billion kroner, and currently the insulin purification plant in Kalundborg is the only major facility under construction in Denmark. As a result, a lower level of activity was inevitable.

'In recent years Novo Nordisk has invested heavily in order to expand its production capacity,' explains Hans Ole Voigt. 'NNE has benefited from this high investment level, and throughout the period we have had a record high number of employees. However, Novo Nordisk's heavy expansion is now nearing its completion, and thus their need for NNE's services is decreasing. Obviously we have to adapt our business according to the circumstances.'

In spite of rising sales to other clients it has not been possible to compensate for the falling sales to Novo Nordisk.

The company now expects the turnover for 2003 to amount to approximately 800 million kroner.

'Prior to taking the step of cutting jobs, we made a number of general cost reductions,' says Hans Ole Voigt. 'However, faced with the prospect of a further decline in turnover in 2004, we were compelled to also cut jobs in order to achieve a sustainable business. We are talking about a staff reduction of around 10-15%. I have informed the company's employees of our plans, and we will now start negotiating with the local unions.'

The lay-offs will affect all levels of the organisation, and are expected to be implemented by 28 October.

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About: NNE A/S
With more than 80 years of experience, the engineering company NNE is a leading supplier of systems, consultancy and engineering services to the international pharmaceutical and biotechnological industry.

Our competencies span all technical disciplines applying to engineering, construction, validation, start-up and optimisation, and reconstruction of facilities for product development and production plants, pilot plants and laboratories within the pharmaceutical and biotechnological field.

Our unmistakable, clear client focus, combined with a flexible and integrated organisation where engineers, architects and pharmacists work closely together, puts us in a position to deliver customised solutions, ranging from stand-alone services to turnkey plants - quickly and safely.

NNE operates at an international level. We have worked on and completed a large number of projects both in Denmark and the rest of Scandinavia, and we have constructed biotechnological and pharmaceutical production facilities in USA, China, Japan, Brazil, and France.

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