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Press release 19 January 2007

HANKKIJA-MAATALOUS OY BUYS 51% OF THE SHARES OF SUOMEN REHU OY AND AVENA NORDIC GRAIN OY

Lännen Tehtaat Oyj and Hankkija-Maatalous Oy, a subsidiary of SOK, have signed a contract under which 51% of the shares of Suomen Rehu Oy and Avena Nordic Grain Oy will be transferred to the ownership of Hankkija-Maatalous Oy. The final execution of the transaction is subject to approval by the competition authorities.

The deal comprises Suomen Rehu Oy and Avena Nordic Grain Oy and their subsidiaries. Mildola Oy, which produces vegetable oils and protein feeds, is not included in the deal.

In conjunction with this majority acquisition, a put option has been agreed, under which Lännen Tehtaat is entitled, if so willing, to sell the remaining 49% of the shares of Suomen Rehu and Avena Nordic Grain to Hankkija-Maatalous after the majority transaction has been finalised. Hankkija-Maatalous, for its part, is entitled to buy the remaining shares not earlier than 15 months after the majority transaction has been finalised.

- Agriculture-related trade is an important and developing business area within the S Group. By operating efficiently in agricultural trade, the S Group implements its mission statement for the benefit of both the rural population and urban customer-owners.
The fact that Kemira GrowHow became a minority shareholder of Hankkija-Maatalous on 27 April 2006, increased the S Group's possibilities of serving the farming community. The acquisition of Suomen Rehu and Avena Nordic Grain will further enhance the possibilities of the S Group's agriculture-related trade of making the whole value chain of agricultural production more efficient. For producers, this means more advantageous inputs and for producers, food products which are cost-effectively produced, domestic, advantageous and of good quality, says Kari Neilimo, Chief Executive Officer of SOK.

- The goal of Lännen Tehtaat Oyj is to be one of the leading Finnish food companies. To be able to concentrate on food products in accordance with its vision, Lännen Tehtaat has decided to sell the majority of the group's feed and grain trade business. This arrangement enhances the financial latitude of Lännen Tehtaat and improves the possibilities of developing the company's food business through either acquisitions or other arrangements, says Matti Karppinen, President of Lännen Tehtaat Oyj.

- The ongoing strong structural change affecting farms calls for alliance and ownership arrangements, which increase cost-effectiveness, throughout the value chain of food production. As a result of the transaction, Hankkija-Maatalous Oy strengthens the supply of the comprehensive services of its core business, the agriculture-related trade, in particular to domestic animal farms. The combination of agricultural trade and feed industry, created through the acquisition, is common in several European countries, for example in all Nordic countries, says Ensio Hytönen, Managing Director of Hankkija-Maatalous Oy.

The combined turnovers of the Suomen Rehu group and Avena Nordic Grain amounted to approx. 272 million euros in 2005. The companies included in the acquisition employ some 330 persons in all.

Suomen Rehu is the largest feed manufacturer in Finland. It develops, produces and markets feeds for cattle, pigs, poultry, horses and fur animals, as well as pet food. Suomen Rehu Oy itself has feed factories in Turku, Seinäjoki and Kotka; of its subsidiaries, Hiven Oy has a feed factory in Paimio, Lännen Rehu Oy has one in Säkylä and SIA Baltic Feed has one in Tukums, Latvia. The associated companies of Suomen Rehu are the logistics control company Movere Oy and the electronic portal company for agriculture, Farmit Website Oy.

The grain trade company Avena Nordic Grain is specialised in the domestic and international trade in grains, oil plants and raw materials for feeds. The company's head office is in Espoo, and it has subsidiaries in St. Petersburg and Vilnius and a representation in Kazakhstan.

Hankkija-Maatalous Oy is a subsidiary of SOK, and Kemira GrowHow Oyj is its minority shareholder. Hankkija-Maatalous is responsible for the development of agriculture-related trade and of the Agrimarket chain within the S Group. The Agrimarket chain engages in agricultural, machinery, hardware and gardening trade at 132 places of business. The number of employees in the chain is just under 1,000. The turnover of Hankkija-Maatalous Oy was 747 million euros in 2005.

Lännen Tehtaat Oyj is a food industry company listed on the Helsinki Stock Exchange. Its turnover totalled 433 million euros in 2005. After the transaction, the Lännen Tehtaat group comprises: the food division; the vegetable oil pressing plant Mildola Oy; the 49 % shares of the sold Suomen Rehu and Avena, to be reported as associated companies; a 20 % share of the associated company Sucros Oy; and 50% of the joint venture Ateriamestarit Oy.

For more information:

SOK, Kari Neilimo, Chief Executive Officer, tel. +358 (0)10 76 80200
Lännen Tehtaat Oyj, Matti Karppinen, President, tel. +358 (0)10 402 4001
Hankkija-Maatalous Oy, Ensio Hytönen, Managing Director, tel. +358 (0)10 76 83001

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