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Restructuring and separation from AFT division

In its media release of October 23, 2006, Kardex announced that more decisive action would be needed at its AFT (Industrial Automation and Conveyor Technology) division.

To ensure the continued existence of the AFT business, the Kardex board

of directors decided to implement a comprehensive restructuring. All AFT

locations will be affected and a reduction of workforce is inevitable.

Kardex is in discussions with representatives of staff organizations.

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