Lännen Tehtaat - Company Announcement

DECISION TO COMBINE THE OPERATIONS OF MILDOLA AND AVENA

LÄNNEN TEHTAAT PLC	   STOCK EXCHANGE RELEASE 	14 August 2009, 8.30 am 

DECISION TO COMBINE THE OPERATIONS OF MILDOLA AND AVENA                         

The Lännen Tehtaat Group has decided on a new intra-Group ownership arrangement 
whereby Lännen Tehtaat plc will sell the entire share capital of its vegetable  
oils company, Mildola Oy, to its trading specialist in grains, oilseeds and     
feeding stuffs, Avena Nordic Grain Oy. The aim of this is to combine the        
commodity market expertise of Avena Nordic Grain with Mildola's expertise in oil
milling. The intention is to achieve annual synergy benefits of approximately   
EUR 0.5 million.                                                                

The new arrangement will be introduced in two stages. At the first stage, the   
administration, purchasing, sales and logistics functions of Mildola Oy will be 
transferred to Avena Nordic Grain Oy. This outsourcing of Mildola's functions   
will entail the transfer of nine of its employees to Avena. The second stage    
will be the asset deal taking place towards the end of the year, when Mildola   
Oy's vegetable oils business, excluding its oil milling operation, will be      
transferred to Avena Nordic Grain Oy, leaving Mildola Oy to continue its oil    
milling operation as a production unit of Avena. The new arrangement is expected
to give rise to non-recurring costs of about EUR 0.1 million, which will be     
entered in the third-quarter result. 

Since the vegetable oils business will no longer form a separate entity for     
monitoring purposes, the former Grain Trading and Vegetable Oils segments will, 
from the start of the third quarter, appear in the Group's financial reporting  
under a new segment name, Grains and Oilseeds. The operating segment data for   
the period Q1/2008 to Q2/2009 based on the new segment structure will be        
published today as a separate stock exhcange release.                           

The Grains and Oilseeds business will be the responsibility of Avena Nordic     
Grain Oy's Managing Director, Kaija Viljanen, who, as of 14 August 2009, will   
also be Managing Director of Mildola Oy.                                        


LÄNNEN TEHTAAT PLC                                                              

Matti Karppinen                                                                 
CEO   
Further information: Matti Karppinen, CEO, tel. +358 10 402 4001                


Copies to:                                                                      
NASDAQ OMX Helsinki Ltd                                                         
Main media                                                                      
www.lannen.fi