Stromsdal - Company Announcement

STROMSDAL'S LETTER OF INTENT REG. A MAJOR CORP. FINANCIAL RESTRUCTURING FAILED AND THE BOARD OF DIRECTORS DECIDED TO FILE FOR BANKRUPTCY

STROMSDAL CORPORATION   
STOCK EXCHANGE RELEASE                                                          
27 November 2008 at 14.05 (Finnish time)                                        



STROMSDAL CORPORATION'S LETTER OF INTENT REGARDING A MAJOR CORPORATE AND        
FINANCIAL RESTRUCTURING HAS FAILED AND THE BOARD OF DIRECTORS HAS DECIDED TO    
FILE FOR BANKRUPTCY                                                             

Stromsdal has this morning received information from Primaca Partners Oy that   
the EUR 5 million equity injection which was a part of the signed and published 
Letter of Intent (LOI), dated October 30, 2008, has failed dispate continues    
negotiations, due to the tight financial market situation. While the LOI        
required that all parts of the LOI to be fulfilled and this is not now          
happening, then there are no chance for the corporate and financial             
restructuring to take place.                                                    

The sudden standstill of the world economy and the tightening of the financial  
market have weakened the order intake. Recently published negative economic     
indicators and dispite raw material prices coming down, the best estimate is,   
that the company operative cash flow will not turn positive this year.          

The company has also today received information from its main financiers that   
they are not willing to input any more money. The company has also explored     
other financing possibilities, but without success. Taking the above            
circumstancies into account the Board of Directors has in its meeting today    
decided on behalf of Stromsdal Corporation to file for bankruptcy in the city   
court.                                                                          

“We are very sorry that the world economy crisis and the itnernational finance  
crisis distroyed our last years' huge financial and labour inputs done for      
Stromsdal and developing its excellent packaging products, mill productivity and
sale improvements.                                                              
We are especially sorry for the employees and their families, City of Juankoski,
customers, shareholders and financiers and other stakeholders, but in the end  
there were no other options.                                                    
We thank all those who have supported our business during all these years.”,    
declares Company Management and the Board of Directors.                         

STROMSDAL CORPORATION                                                           
Board of Directors                                                              


For further information, please contact:                                        
Harry Salonaho, Chairman of the Board of Directors                              
Tel. +358 50 442 5305                                                           


DISTRIBUTION                                                                    
Helsinki Stock Exchange                                                         
Major media                                                                     
www.stromsdal.com                                                               


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STROMSDAL is a forest based industry company  and its board mill is located in  
Juankoski, Finland. Stromsdal's sales and customer service network covers more  
than 30 countries, mainly in Europe.                                            

For demanding printing jobs Stromsdal offers its customers premium-quality      
graphical boards - GraphiArt Duo and GraphiArt Pro - with excellent combination 
of printability, brightness and stiffness. For food-packaging Stromsdal offers  
its speciality environmentally friendly product - Tecta - a dispersion coated   
barrier board, which is 100 per cent plastic-free, bio degradable and fully     
recyclable.                                        

Stromsdal's shares are listed on the Small Cap segment of the Helsinki Stock    
Exchange (NASDAQ OMX Helsinki Ltd) under the company code STM1V.                

STROMSDAL CORPORATION                                                           
Juankoskentie 7 A, P.O. Box 33, FI-73501 Juankoski                              
Tel. +358 20 710 9200, Fax. +358 20 710 9210                                    
www.stromsdal.fi