Kesko Oyj - Company Announcement

Kesko to strengthen the competitiveness of the K-maatalous and Rautia chains

KESKO CORPORATION STOCK EXCHANGE RELEASE 28.05.2008 AT 09.00 1(1)

Kesko to strengthen the competitiveness of the K-maatalous and Rautia chains

Kesko will develop the concept, product selections, customer service and
operational efficiency of the K-maatalous and Rautia stores. The guidance,
sourcing, logistics and administration of the K-maatalous and Rautia chains
will be combined. At present, combined Rautia-K-maatalous stores account for
half of all stores of the chains and Kesko will invest strongly in them. The
reform plan will support the K-maatalous chain's strategy "Better agricultural
trade", the cornerstones of which include more efficient processes, the most
active sales and the continuous improvement of customer satisfaction. 

The trade of tractors and combines and the construction and environmental
machinery will be concentrated in Konekesko, which will enable the company to
provide customers with the leading product representations covering the market
areas of Finland and the Baltic countries as well as a wide service and spare
parts network. This will also further improve Konekesko's opportunities to
expand to new market areas. The K-maatalous stores will continue to serve
customers in the tractor and combine business. 

Kesko Agro Ltd will demerge on 1 January 2009 so that the agricultural trade
activities in Finland will become part of Rautakesko Ltd. In addition, the
trade of tractors and combines as well as the agricultural and machinery trade
companies in the Baltic countries will become part of Konekesko Ltd. The
arrangement is not anticipated to have an immediate impact on the number of
personnel. It is estimated that the arrangement will result in an annual
benefit of approximately €3 million to Kesko. 

Seppo Hämäläinen, M.Sc. (Econ.), 40, has been appointed as Rautakesko's
Executive Vice President as of 1 June 2008. Hämäläinen will continue as Kesko
Agro's President until 31 December 2008. 

Further information:
Jari Lind, President, Rautakesko Ltd, tel. +358 1053 20200
Aatos Kivelä, President, Konekesko Ltd, tel. +358 1053 20170
Seppo Hämäläinen, President, Kesko Agro Ltd, tel. +358 1053 20810


Kesko Corporation



Paavo Moilanen
Senior Vice President, Corporate Communications and Responsibility 


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