Rapala VMC - Company Announcement

RAPALA SELLS NON-CORE GIFT BUSINESS

Rapala VMC Corporation
Stock Exchange Release
December 23, 2011 at 1.00 p.m.


Sale and purchase agreement relating to Willtech Gift (HK) Ltd closed

Rapala VMC Corporation ("Rapala") and Pylones SAS. ("Pylones"), French based
designer and retailer of premium gift items worldwide, have closed the sale and
purchase agreement relating to Willtech Gift (HK) Ltd ("Willtech Gift "), the
Rapala unit engaged in manufacturing of gift items in China.

According to this agreement Rapala will sell and Pylones will purchase 100 % of
the shares of Willtech Gift. All Rapala's gift item manufacturing and
distribution activities were transferred under Willtech Gift before this
transaction. This transaction has no effect to Rapala's fishing tackle business.

Rapala acquired the Willtech gift and lure manufacturing business in 2001. The
origin of Willtech's gift manufacturing was to offset the seasonality of the
fishing tackle manufacturing. Today Willtech manufactures fishing tackle under
several Group brands throughout the year in its facilities in China and
Indonesia. "During the past 10 years Willtech's gift business has developed very
positively into an independent business of its own together with its main
customer Pylones. We believe that as a member of Pylones group Willtech Gift
will fully enjoy the benefits of being part of a group fully devoted to premium
gift business, outperforming the competition", says Jorma Kasslin, CEO of
Rapala. "We are very happy to exploit full synergies of design, manufacturing,
distribution and retail businesses through this acquisition of the main sourcing
partner of Pylones. This acquisition will also strengthen the retail businesses
of Pylones in China, which is the fastest growing gift business market in the
world", says Jacques Guillemet, Managing Director of Pylones.

The divestment of Willtech Gift will slightly lower Rapala's 2012 net sales and
operating profit and it will lower Rapala's gearing. Willtech Gift has
represented some 3-4 % of Rapala's net sales, while its profitability has been
lower than in Group's core fishing tackle business. The parties have agreed not
to disclose the consideration of the transaction. The consideration will partly
be settled by a guaranteed interest bearing promissory note during years
2012-2016.

RAPALA VMC CORPORATION

Jorma Kasslin
Chief Executive Officer

For further information:
Olli Aho, Investor Relations, tel. +358 9 7562 540

Distribution: NASDAQ OMX Helsinki and main media

Rapala VMC Corporation (Rapala) is a leading fishing tackle company and the
global market leader in fishing lures, treble hooks and fishing related knives
and tools. The Group also has a strong global position in other fishing
categories and it is one of the leading distributors of outdoor, hunting and
winter sport products in the Nordic countries. The Group has the largest
distribution network in the industry. The main manufacturing facilities are
located in Finland, France, Estonia, Russia, China and the UK. The Group brand
portfolio includes the leading brand in the industry, Rapala, and other global
brands like VMC, Sufix, Storm, Blue Fox, Luhr Jensen, Williamson, Dynamite
Baits, Marttiini and Peltonen. The Group, with net sales of EUR 269 million in
2010, employs more than 2 000 people in 33 countries. Rapala's share is listed
and traded on the NASDAQ OMX Helsinki stock exchange since 1998.


[HUG#1573730]

Attachments:

Stock Exchange Release.pdf