NEO INDUSTRIAL PLC INVESTOR NEWS 1 December 201

Neo Industrial’s subsidiary Reka Cables has opened a fire testing facility for cables in Keuruu, Finland.  Cable Test Center is the first fire testing laboratory offering CPR-testing in Finland,  and will significantly strengthen Reka's product development

The opening of the new fire testing facility was prompted by the EU / 305/2011 Construction Products Regulation (“CPR”) governing the safety of EU construction products, which expanded from 1 July 2017 to include electricity and telecommunication cables used as construction products. CPR obliges the manufacturers to declare the fire behaviour of their products more substantially than before. The new CPR test laboratory gives Reka Cables a significant advantage in product development. With the Construction Products Regulation, new product types must always be tested and classified according to the new system before they can be launched to market. Reka Cables gets both speed gain and capability when it’s able to do CPR testing in its own premises. New product types can be tested and their characteristics passed to completion before the required official testing at the approval body is carried out. The system also allows for more efficient market monitoring and analysis of competing products.

Reka Cables’ Cable Test Center offers fire testing services also externally

Similar testing equipment is rarely available, only the largest cable manufacturers have them in their own use. Therefore, there is estimated to be a clear need for fire behavior testing of cables at the request of customers and authorities. This creates new business opportunities for Reka Cables while it’s simultaneously improving the quality and safety of its own products from already a high level to even higher. A change in the classification and testing of new fire behaviour characteristics has meant significant efforts for cable manufacturers. The test method and rating system are different from previous, and previously used test equipment is not sufficient for the new requirements. Another feature is that the approval tests for the fire classification must be carried out in so-called Notified Bodies, the nearest of which is currently located in Sweden. Reka Cable has tested, classified and marked all its cables according to new CPR requirements by 1 July 2017 using external test facilities. Additional information: Ralf Sohlström, CEO, tel. +358 40 770 2720 www.neoindustrial.fi/en

Neo Industrial's strategy is to invest mainly in industrial companies with similar synergic benefits. The aim of investments is with active ownership to develop the purchased companies and establish additional value. Returns are sought through both dividend flow and an increase in value. Neo Industrial's class B shares are listed on the main list of NASDAQ Helsinki Stock Exchange. Neo Industrial's business segment is Cable Industry .