Feintool impacted by current developments

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The major upheavals in the automotive industry have called for
far-reaching measures at Feintool. The company is positioning itself
for lower production volumes in the medium term. For the 2008/09
financial year, it expects a negative operating result (EBIT) due
mainly to extraordinary expenses. Feintool is confident about the
upcoming 2009/10 financial year.

In the wake of the financial crisis, automotive production around the
world has collapsed. Some of the sub-markets have plunged by up to 50
percent. In the US, Japan and Europe, the crisis was only alleviated
thanks to government support measures.

The difficult economic situation has also been reflected in the
financial results of the Feintool Group. As a leader in
fineblanking/forming systems and assembly automation, as well as a
global supplier of fineblanked metal components to the automotive
industry, Feintool suffered a considerable fall in sales in the
2008/09 financial year of up to 35 percent. Had it not been for the
high level of orders in hand from the previous year, the situation
would have been even more drastic.

Financial outlook
The company's net sales for the 2008/09 financial year will be around
35 percent down on the outstanding level of the previous year.
Whereas operating profit (EBIT) will be in the region of CHF -55 to
-60 million for the year ended 30 September 2009, the net deficit of
between CHF 65 and 70 million does include one-time expenses.
Worldwide, Feintool will have shed around 450 jobs by the end of the
calendar year.

The definitive sales figures for the 2008/09 financial year will be
published on 27 October and all other detailed financial data at the
annual media conference on 8 December 2009.

The indications over recent months are that System Parts will
continue to develop positively in the first quarter of 2009/10. In
the investment goods area (Fineblanking Technology and Automation
segments), a market revival is expected towards the end of the second
quarter of 2009/10.

Joint Venture with BorgWarner
The economic crisis means that the joint venture agreement signed
last September between US automotive supply group BorgWarner and the
Feintool Group, relating to joint activities on the North American
automotive market, cannot now proceed as planned. Indeed all
activities have had to be halted due to the dramatic development on
that market. The Feintool Group no longer believes that medium-term
developments on the market in question offer the potential for a
resumption of joint activities. Due to the short time that elapsed
between the signing of the joint venture agreement and the start of
the economic crisis, no significant investments were made.

Group's medium-term financing is secure
On 22 September 2009, to ensure the financing of its operations -
and, in particular, investment over the next few years - Feintool
signed a CHF 120 million global credit agreement covering the period
to 2012. The global credit line also offers sufficient scope for the
planned growth. With shareholders' equity of CHF 154.8 million (as at
31 March 2009) and an equity ratio of around 38 percent, this
continues to represent a solid financial base.

Merger in Automation segment
Extensive parts of the business were affected by short-time working
throughout the financial year. Feintool also optimized its business
areas and sites. Following the decision to close Mühlemann AG, the
next move of the Board of Directors will be to merge two subsidiaries
within the Automation segment.

IMA Automation Aarberg AG and Afag Automation AG in Huttwil (both in
Switzerland) are to be combined. In future, Afag Automation AG in
Huttwil will become responsible for marketing and client support for
IMA automation systems with sales and servicing in Switzerland.

The production of automation systems in Aarberg is to end due to
inadequate competitiveness and a slump in orders; the site will be
closed at the end of January 2010. Despite the merger, job reductions
will probably be unavoidable. The Group Management has launched a
consultation process and employees have been informed. Together with
staff representatives, a redundancy scheme is being drawn up for the
28 employees affected. As for the nine apprentices, Feintool will do
all in its power to find a solution that enables them to continue
their training.

Personnel decisions taken by Board of Directors
At its extraordinary meeting on 21 September 2009, the Board of
Directors took the following personnel decisions:

Alexander von Witzleben to concentrate on chairmanship
Since 1 April 2009, Chairman of the Feintool Board of Directors
Alexander von Witzleben has performed the additional role of acting
Delegate and Chief Executive Officer (CEO). From 1 October 2009, the
focal point of his activities will once again be the strategic
direction of the Feintool Group and his role as Chairman.

Head of System Parts Heinz Loosli to be new CEO
The Board of Directors has appointed Heinz Loosli, Head of Systems
Parts, as new CEO effective 1 October 2009. The 55-year-old, who
holds an HTL degree in electrical engineering, has been with the
Feintool Group for more than 13 years. Born in Solothurn, he was
first appointed Head of the "Presses and Systems" division, following
which he successfully managed the parts business. As CEO, he will
continue to head up the System Parts segment. The Board of Directors
is delighted that Heinz Loosli, a proven industry expert with many
years of Feintool expertise, is taking on this role.

Thomas Bögli is new CFO
In summer 2009, moreover, former Chief Financial Officer (CFO) Jürg
E. Wenger informed the Chairman of the Board of Directors that he was
planning a new career move and wished to take up a new challenge. At
its 21 September meeting, the Board of Directors accepted the early
termination of his contract and appointed Thomas Bögli as his
successor as CFO effective 1 October 2009. An experienced business
administrator who has held various management positions with
prestigious listed companies, his most recent role was as CFO with
the Nobel Biocare Group - a position he occupied for around four
years.

Further information may be obtained from media spokesperson Karin
Labhart at any time by calling +41 (0)32 387 51 63 or e-mailing
karin.labhart@feintool.com.

Feintool International Holding AG
Industriering 8, CH-3250 Lyss
Phone +41 (0)32 387 51 11
Fax +41 (0)32 387 57 81
feintool-fim@feintool.com
www.feintool.com

The media release can be downloaded from the following link:

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Feintool International Holding
Industriering 8 Lyss Schweiz

WKN:
905428; ISIN: CH0009320091 ; Index: SPI, SPIEX, SSCI;
Listed: Main Market in SIX Swiss Exchange;
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