Nokian Renkaat - Company Announcement

NOKIAN TYRES' NET SALES AND OPERATING PROFIT WILL BE LOWER THAN EXPECTED

Nokian Tyres plc Stock Exchange Release 12.12.2008 at 11.20
NOKIAN TYRES' NET SALES AND OPERATING PROFIT WILL BE LOWER THAN EXPECTED 

Nokian Tyres' fourth quarter sales have been weaker than expected and the
operating profit will be lower than target. The company will not reach its
previously communicated sales target for 2008 of EUR 1,150-1,200 million.
Group's net sales in 2008 are estimated to grow approx. 5% compared with the
previous year. The operating profit is estimated to be on the previous year's
level. 

Demand for tyres has decreased in all Nokian Tyres' core markets and in Russia
and other CIS countries in particular due to lower sales of new cars, a late
start of the car winter tyre season and the financial crisis. The company is
limiting sales and reclaiming some approx. 30 million euros of the tyres
already sold in Russia and CIS countries in order to reduce risks related to
receivables and exchange rates. Due to the depreciation of the Ukrainian Grivna
by approx. 40% against US dollar from the end of September, the company will
report in financial items currency exchange losses of approx. 30 million euros
related to US dollar nominated inter-company loan. 

The outlook for 2009 has weakened. Nokian Tyres is taking measures to adjust
inventory and production capacity levels in line with demand. In addition, the
company will cut costs and investments significantly in order to ensure its
cash flow. 

Nokian Tyres plc

Raila Hietala-Hellman
Vice President, Corporate communications


Further information: Mr. Kim Gran, President and CEO, 
tel.+358 10 401 7336. 


Distribution: NASDAQ OMX, major media and www.nokiantyres.com