Kitron's subsidiary Kitron AB in Karlskoga, Sweden is facing operational challenges in the first quarter. This is related to margin slippages and overcapacity.

Due to these challenges, Kitron expects to book approximately NOK 15 million in losses for Karlskoga in the first quarter--NOK 8.5 million are provisions for restructuring costs. Firm measures have been taken to turn around Kitron AB and it is expected that performance will improve during the remainder of 2010.

The company has also announced that Johannes Lind, General Manager of Kitron Sweden, has decided to leave Kitron immediately. Jørgen Bredesen, CEO of Kitron ASA, will take on the role on an interim bases.

About Kitron

Kitron is one of Scandinavia's leading companies in development, industrialisation and manufacturing of electronics for the Data/Telecoms, Defence, Energy, Industry, Medical equipment and Offshore/Maritime sectors. The company is located in Norway, Sweden, Lithuania, Germany and China. Kitron had a revenue of approximately NOK 1.7 billion in 2009 and has about 1,100 employees. For more information, visit http://www.kitron.com/.