Honkarakenne Oyj - Company Announcement

HONKARAKENNE OYJ TO INITIATE NEGOTIATIONS UNDER THE ACT ON CO-OPERATION WITHIN

HONKARAKENNE OYJ Stock Exchange Release 19 April 2010, 16:00                    

HONKARAKENNE OYJ TO INITIATE NEGOTIATIONS UNDER THE ACT ON CO-OPERATION WITHIN  
UNDERTAKINGS                                                                    

Honkarakenne Oyj initiates co-operation negotiations concerning all its         
personnel in Finland to secure the successful implementation of the ongoing     
programme to boost earnings, which aims at a positive financial performance for 
the Group in 2010.                                                              

According to a preliminary estimation by the company, the co-operation          
negotiations may result in temporary lay-offs lasting 90 days at most by the end
of 2010. The lay-off plans concern all personnel groups.                        

On 15 March 2010, the company concluded co-operation negotiations which resulted
in 33 notices of termination, of which 12 were pension schemes. Additionally, 45
persons were laid off for an indefinite period. The co-operation negotiations   
which are initiated now continue the company's rationalisation measures, with   
the aim to secure the company's competitiveness despite seasonal variation and  
the development of sales.                                                       

It is estimated that the co-operation negotiations will be concluded by mid-May.


HONKARAKENNE OYJ                                                                
Esa Rautalinko                                                                  
President and CEO                                                               

Additional information: President and CEO Esa Rautalinko, 
tel. +358 (0)400 740 997, esa.rautalinko@honka.com.  

DISTRIBUTION                                                                    
NASDAQ OMX Helsinki Oy                                                          
Key media                                                                       
Financial Supervisory Authority                                                
www.honka.com