Kotkamills Group Oyj - Inside information

Kotkamills Group Oyj: OPTIMIZATION OF GROUP STRUCTURE IMPLEMENTED

Kotkamills Group Oyj

STOCK EXCHANGE RELEASE

1 September 2017, at 5 pm (CET + 1)









Kotkamills Group Oyj has on 5 July 2017 published a stock exchange release
concerning the Kotkamills group's intention to transfer three of its existing
business lines, namely the Imprex®, Absorbex® and Wood business lines, into
wholly owned subsidiaries of Kotkamills Oy (the "Reorganisation").

The Reorganisation has now been implemented and the Imprex®, Absorbex® and Wood
business lines have been transferred to Kotkamills Oy's wholly owned
subsidiaries Kotkamills Imprex Oy, Kotkamills Absorbex Oy and Kotkamills Wood
Oy, respectively, effective as of 1 September 2017.

Kotkamills' Consumer Boards business line, producing bleached CTMP base high-
quality Nordic Folding Boxboard and recyclable barrier board products, remains
in Kotkamills Oy.

The implementation of the Reorganisation comprises transfer of materially all
assets and liabilities of the Imprex®, Absorbex® and Wood business lines to the
relevant subsidiaries (Kotkamills Absorbex Oy, Kotkamills Imprex Oy and
Kotkamills Wood Oy), including buildings and machines, current assets,
receivables, working capital and intellectual property rights. Additionally, the
employees of each business line have been transferred along with the relevant
business line.

To the extent the assets transferred in the Reorganisation were covered by the
Transaction Security, as defined in terms and conditions of Kotkamills Group
Oyj's EUR 105,000,000 Senior Secured Callable Bonds 2015/2020 (ISIN:
FI4000148705), the existing security arrangements remain in place and/or the
receiving subsidiaries and Kotkamills Oy have granted appropriate security as
required by the terms and conditions of the bonds.

Kotkamills Group Oyj
Board of Directors



For additional information, please contact:

CFO Petri Hirvonen, tel.+358 40 571 0834, petri.hirvonen@kotkamills.com



DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media
www.kotkamills.com




Kotkamills Group in brief

Kotkamills is a responsible partner that delivers renewable products and
performance to its customers' processes via product innovations created from
wood, a renewable raw material. The key brands of the company include Absorbex®
and Imprex®, both innovative laminating paper products for the laminate, plywood
and construction industries. Moreover, Kotkamills offers ecological, technically
sound and visually attractive wood products for demanding joinery and
construction. In summer 2016, Kotkamills started up a new board machine
producing AEGLE(TM) Folding Boxboard and ISLA(TM) Food Service Boards, including
the capability to add barriers on-machine. All Consumer Boards material
solutions are fully recyclable and repulpable.

Kotkamills has two production sites in Finland, located in Kotka and Imatra. The
majority shareholder of Kotkamills is MB Funds, a Finnish private equity firm.

www.kotkamills.com



Disclaimer

The information contained in this release shall not constitute an offer to sell
or the solicitation of an offer to buy securities of Kotkamills Group Oyj in any
jurisdiction.










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