Lehto Group Oyj - Company Announcement

Lehto Group Plc: The Board of Directors of Lehto Group Plc Resolved on Key Employee Incentive Plans

Lehto Group Plc
Stock Exchange Release
20 December 2016 at 3.00 p.m. (EET)


The  Board of Directors  of Lehto Group  Plc Resolved on  Key Employee Incentive
Plans

The  Board of Directors of Lehto Group Plc has resolved to launch two new share-
based  incentive plans for the  Group key employees. The  aim of the plans is to
combine  the objectives of  the shareholders and  the key employees  in order to
increase  the value of the Company in the long-term, to commit the key employees
to  the Company, and to offer them competitive reward plans based on earning the
Company's shares.

The  long-term incentive plan  offers the key  employees belonging to the target
group  an opportunity to earn  the Company's shares as  reward by converting the
performance  bonus to be earned  in the performance bonus  system into shares on
the  key employee's request. The performance bonus converted into shares will be
increased  by a reward multiplier determined by  the Board of Directors prior to
the reward payment.

The  potential reward from the long-term incentive  plan will be paid to the key
employees after a two-year restriction period partly in the Company's shares and
partly  in cash. The cash proportion is meant for covering taxes and tax-related
costs arising from the reward to the key employee.

The  long-term incentive plan  is directed to  70 key employees, in the maximum,
including  the members of  the Group Management.  The rewards to  be paid on the
basis  of the  performance periods  2016 and 2017 correspond  to the value of an
approximate maximum total of 1,000,000 Lehto Group Plc shares including also the
proportion  to be paid in cash, on the share price level on the date of the plan
resolution, if all key employees belonging to the target group decide to convert
their performance bonuses entirely into the shares.

Furthermore, the Board of Directors resolved on the Group's new restricted share
plan.  The reward from  the restricted share  plan is based  on a key employee's
valid  and continuing employment  or service during  the restriction period. The
reward  will be paid after a restriction  period lasting for one to three years,
partly  in the Company's shares and partly in cash. The cash proportion is meant
for  covering taxes  and tax-related  costs arising  from the  reward to the key
employee.

The  restricted  share  plan  is  directed  to  selected key employees only. The
rewards  to be paid on the basis of  the restricted share plan correspond to the
value of an approximate maximum total of 50,000 Lehto Group Plc shares including
also the proportion to be paid in cash.

Lehto Group Plc
The Board of Directors

For more information:

Hannu Lehto, CEO
 + 358 500 280 448
 hannu.lehto@lehto.fi

Veli-Pekka Paloranta, CFO
 + 358 400 944 074
 veli-pekka.paloranta@lehto.fi

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