Sievi Capital Oyj - Company Announcement

COURT OF ARBITRATION ORDERED OJALA-YHTYMÄ LTD AND ITS SHAREHOLDERS TO PAY EUR 2 MILLION IN DAMAGES TO SIEVI CAPITAL PLC AND SCANFIL EMS LTD

SIEVI CAPITAL PLC  STOCK EXCHANGE RELEASE  1 MARCH 2012 10:00 A.M.



COURT OF ARBITRATION ORDERED OJALA-YHTYMÄ LTD AND ITS SHAREHOLDERS TO PAY EUR 2
MILLION IN DAMAGES TO SIEVI CAPITAL PLC AND SCANFIL EMS LTD 

With the judgment issued on 29 February 2012, the court of arbitration has
ordered Ojala-Yhtymä Ltd and its shareholders (“Ojala”) to pay a total of EUR 2
million and interest to Sievi Capital plc and Scanfil plc's subsidiary Scanfil
EMS Ltd and to pay the companies' legal expenses in the matter in full.
Furthermore, Ojala was obligated to pay the court of arbitration's expenses and
fees in full. The compensation less legal expenses will be divided equally
between Sievi Capital plc and Scanfil EMS Ltd. In its award, the court of
arbitration confirmed all of Sievi Capital plc's and Scanfil EMS Ltd's claims
and the opinion that Ojala was not entitled not to execute the agreed merger.
The judgement of the court of arbitration is final. The court of arbitration
has dismissed Ojala´s counterclaim against Sievi Capital plc and Scanfil EMS
Ltd in its entirety. 

Sievi Capital Plc will recognise the damages in first quarter through profit
and loss account. 

Earlier on 25 March 2011, Sievi Capital plc announced that the General Meeting
of Ojala had decided not to execute the merger of Ojala and Scanfil EMS Ltd, a
subsidiary of Sievi Capital plc at the time and currently of Scanfil plc. 

Sievi Capital plc and Scanfil EMS Ltd considered the merger agreement signed on
1 November 2010 was definitive and that it obligates the parties to execute the
merger with the terms agreed on in the merger agreement. Ojala unilaterally
announced that its General Meeting had decided not to execute the merger.
Scanfil EMS Ltd implemented all of the measures required of it by the merger
agreement. 

Sievi Capital plc and Scanfil EMS Ltd decided, as announced on 27 April 2011,
to initiate arbitration proceedings against Ojala and its shareholders and
claim two million (2,000,000) euro as contractual penalty on the basis of the
merger agreement as well as legal and the court of arbitration's expenses and
fees. 

Sievi Capital plc announced on 16 November 2011 that Ojala and its shareholders
have brought the counterclaim for a compensation of two million (2,000,000)
euro and claim for both legal and the court of arbitration's expenses and fees. 



SIEVI CAPITAL PLC



Jorma J. Takanen

President & CEO



Additional information:

President Jorma J. Takanen

Tel +358 8 4882 502 / +358 44 7882 200



Distribution         NASDAQ OMX, Helsinki

                     Major Media

                     www.sievicapital.com



Sievi Capital Group is an investment company which objective is to make the
management of the company's funds more effective and productive by diversifying
the risks and finding new growth potential. 

The associated companies of Sievi Capital Group:

Kitron ASA (KIT) (Sievi Capital plc's share of ownership 32,96%) is a listed
Norwegian subcontractor, which operates in five different customer segments:
the marine and oil industry, basic industry, defence equipment industry,
hospital and healthcare equipment industry and data and telecommunications
industry. In addition to Norway, Kitron ASA has plants and production in
Sweden, Lithuania, Germany, China and the United States. Kitron ASA's turnover
in 2011 was NOK 1,656.1 million (about EUR 213.6 million). www.kitron.com 

iLOQ Ltd (Sievi Capital plc's share of ownership 23%) develops, manufactures
and markets innovative, high security, electronic and battery-free locking
solutions that combine modern mechatronics with communications and software
technology. The functionality of the iLOQ S10 product concept developed by iLOQ
Ltd and the added customer value it generates has been shown to be good by
achieving significant growth and customer accounts in the Finnish lock market.
The company has built a Finnish distributor network that covers growth centres
and major cities. www.iloq.fi 

IonPhasE Ltd (Sievi Capital plc's share of ownership 39,15%) develops and
manufactures high performance dissipative polymers that help to control static
electricity. IonPhasE products are utilized in wide range of industries like
chemical, automotive, telecommunication and consumer electronics. Based on
own-patented technology, IonPhasE manufactures polymers called IonPhasE IPE.
www.ionphase.fi 

Panphonics Ltd (Sievi Capital plc's share of ownership 40%) is the world's
leading provider of directional audio solutions. Panphonics manufactures
directional audio solutions for acoustically demanding applications based on
its own patented technology. Panphonics Sound Shower directional audio speakers
can be found in banks, retail stores, digital signage projects, information
kiosks, theatres, and offices throughout the world. Panphonics is also
component manufacturer and licensor of plane wave technology for industrial
audio manufacturers and audio solution providers. www.panphonics.com 

In addition Sievi Capital plc's share of ownership in Lännen Tehtaat plc is 8,6
%. Lännen Tehtaat plc is a food production company whose shares are quoted on
NASDAQ OMX Helsinki Ltd. The business operations of the group consist of the
Frozen Food business, the Seafood business and the Grains and Oilseeds
business. Lännen Tehtaat operates in the northern Baltic Sea region.
www.lannen.fi