HMS Networks

Regulatory Filings • Apr 28, 2009

PRESSRELEASE Halmstad April 28, 2009

HMS is initiating a cost reduction program and reducing staff in Halmstad due to weak market conditions

HMS Networks AB (publ) has today issued a notice of termination of employment to 16 employees at the Company's facility in Halmstad. The downsizing is a direct result of the continuing weak demand.

As previously informed on April 2, 2009 HMS is facing a period with decreasing demand. All markets except China show a decrease. The biggest decrease is recognized in Japan where the automation industry is affected both of a weak market and a material strengthening of the Japanese currency. On the US market sales volumes are more stable just below sales volumes for the same period last year.

• During the last months we have moved production volumes back from sub-suppliers to our manufacturing facility in Halmstad, we performed internal education programs and other activities hoping for a strengthening of the market situation. Unfortunately we now have to realize that the market situation is still weak and that our sales volumes have reached a level where we have react and take these measures, says Staffan Dahlström, CEO.

Discussions with relevant unions will be initiated immediately to accomplish the downsizing as soon as possible.

• In the present market situation we have to adjust expenses and personnel. It is important to communicate the final decision to the employees as soon as possible, but we have to consider the fact that the negotiations must be carried out thoroughly and in a trustful climate of negotiation, says Staffan Dahlström, CEO.

For further information please contact:

CEO Staffan Dahlström, +46 35 17 29 01 CFO Gunnar Högberg, +46 35 17 29 95

Press pictures and background information for editorial use can be downloaded under "Press" at http://investors.hms.se.

HMS Networks AB (publ) is a world-leading supplier of communication technology for industrial automation. Sales for 2008 grew by 17% to SEK 317 million. Over 90% of these sales were to customers located outside Sweden. All development and the major portion of manufacturing is carried out at the head office in Halmstad. Sales offices are located in Japan, China, Germany, the USA, Italy and France. HMS has 155 employees and produces network interface cards and products to interconnect different networks under the trademark Anybus®. The network interface cards are embedded in automation equipment such as inverter drives, robots, control systems and sensors. This allows subcomponents in machines to communicate with one another and with different networks in order to build more efficient and flexible automation systems with reduced energy consumption.

In 2008 HMS was presented with Sweden's "Best export company" award by H.M. the King of Sweden and HMS has had an average growth of 30% year-on-year over the past ten years. HMS is listed on the NASDAQ OMX Nordic Exchange in Stockholm in the Small Cap, Information Technology sector.