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Agfa discloses $164 million Cost Cutting Plan

Press release from the issuing company

(October 14, 2008) As announced on the occasion of the publication of the second quarter results, Agfa-Gevaert is planning an important reduction of its operational costs. The worldwide savings program has now been finalized. Its goal is to reduce the Group's operational costs by 120 million Euro before end of 2010. This savings program mainly concerns a reduction of the sales and general administration costs.

Furthermore, Agfa-Gevaert will also realize savings in the field of costs of goods and services, to protect its gross margins in order to strengthen its competitive position. Next to the personnel related expenses, it also concerns non-personnel related expenses, such as infrastructure costs and costs related to the purchase of goods and services. The execution of the program is the responsibility of the three business groups (Graphics, HealthCare, Materials).

Regarding Agfa-Gevaert inBelgium, the members of the works councils were informed earlier today that the company will strive to reduce the operational costs inBelgiumby 32 million Euro. Among other measures, the plan implies a reduction of about 300 jobs by end of 2010. This number includes the reduction already planned in anticipation of the volume decrease in the production of traditional film products.