Rapala VMC - Company Announcement

RAPALA STRENGTHENS ALLIANCE WITH SHIMANO IN SOUTH-EAST EUROPE

PRESS RELEASE

 June 18, 2007


Rapala VMC Corporation ("Rapala") and Shimano, one of the leading
manufacturers of rods and reels worldwide, have strengthened their
distribution alliance in Hungary and South-East Europe. Shimano has
subscribed a 33,4 % shareholding in Rapala's Hungarian distribution
company, Rapala Eurohold Ltd ("Rapala Eurohold"). Rapala's ownership
is now 56,6 % and the Managing Director of Rapala Eurohold, Mr Karoly
Agh Jr, has the remaining 10% ownership. The funds from this
transaction are invested in strengthening the sales and marketing in
South-East Europe. This transaction does not have a material effect
on Rapala's 2007 result.

As of January 1, 2007, Rapala Eurohold, having its offices in
Budapest, became a South East European distribution center of Rapala
and Shimano products for Hungary, Rumania, Bulgaria, Slovenia,
Croatia, Bosnia, Serbia, Macedonia and Albania.

Rapala Eurohold's performance during the first few months of 2007 has
been excellent. The total sales of Rapala Eurohold are expected to
exceed 5 MEUR in 2007 compared to less than 3 MEUR in 2006.

Rapala distributes currently Shimano rods and reels and other Shimano
branded products to South Africa and 20 countries in Europe. Shimano
distributes Rapala-branded products to 4 countries in Europe.

RAPALA VMC CORPORATION

Jorma Kasslin
Chief Executive Officer

For further information:

Jouni Grönroos, Chief Financial Officer, tel. +358 9 7562 540
Olli Aho, Company Counsel, tel. +358 9 7562 540

Distribution:

Main Media
Helsinki Stock Exchange

Rapala VMC Corporation is a leading fishing tackle company and the
global market leader in the fishing lures, treble hooks and fishing
related knives and tools. The Group also has a strong global position
in other fishing categories. The Group has its own distribution
companies in all the main markets and the largest distribution
network in the industry. The main manufacturing facilities are
located in Finland, France, Estonia and China. The Group brand
portfolio includes the leading brand in the industry,
Rapala, and other global brands like VMC, Storm, Blue Fox, Luhr
Jensen, Williamson and Marttiini. The Group, with net sales of EUR
227 million in 2006, employs more than 4,000 people in 29 countries.