Iittala Group Oyj - Company Announcement

AA CAPITAL WILL NOT SELL ITS HOLDING IN IITTALA GROUP PLC AND THE OFFERING IS CANCELLED

Iittala Group Plc       Stock exchange release 27 March 2007 at 1.10 p.m. 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO   
THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN.                                  


AA CAPITAL NORDIC FUND B.V. WILL NOT SELL ITS HOLDING IN IITTALA GROUP PLC AND  
IITTALA GROUP'S OFFERING IS CANCELLED                                           


AA Capital Nordic Fund II. B.V., Iittala Group Plc's (the "Company") principal  
owner, has today on 27 March 2007 resolved not to sell its holding in Iittala   
Group Plc. As a result, the Board of Directors of the Company has decided to    
cancel the offering and withdraw the application with the Helsinki Stock        
Exchange regarding the listing.                                                 

AA Capital Nordic Fund II B.V. has today announced the following:               

"We believe in Iittala Group as an investment and a company. The lower end 
of the preliminary price range set for the Company's shares attracted very
strong interest. However, this did not correspond with our view on the value 
of the Company." 

"The preliminary price range of the offering was set in quite an unstable
period of time when the stock prices all around the world had weakened
significantly. As far as we can see, the market has now stabilised. For this 
reason we set a fixed subscription price last week which represented the 
mid-point of the preliminary price range." 

"At the fixed subscription price set by us, the demand for the shares was
good. Nevertheless, we were not assured of a healthy secondary market 
development and as a result have decided to keep our investment." 

Iittala Group Plc's offering ended today on 27 March 2007 at noon (Finnish      
time). The terms and conditions of the offering were amended during the offering
on 22 March 2007 as a result of which the subscription period was extended until
today. Nordea Bank Finland Plc, the Manager of the retail offering, will return 
the funds paid pursuant to subscription commitments to the subscribers in       
accordance with the terms and conditions of the offering.                       

Due to the withdrawal of the application regarding listing, the Company will not
be obliged to comply with the rules of the Helsinki Stock Exchange in the       
future.                                                                         


Iittala Group Plc                                                               

Board of Directors                                                              


For further information, please contact:                                        

Karsten Borch                                                                   
Iittala Group, Chairman of the Board                                            
tel. +45 2463 1301                                                              

Johan Bjurström                                                                 
ABN AMRO Capital, Member of the Board in Iittala Group                          
tel. +46 707 41 5480                                                            

Tero Vähäkylä                                                                   
Iittala Group, President and CEO                                                
tel. 0204 39 5306                                                               

Elina Björklund                                                                 
Iittala Group, Group Director                                                   
tel. 0204 39 5761                                                               


Distribution:                                                                   
Helsinki Stock Exchange                                                         
Main media                                                                      

This document is not a prospectus and as such does not constitute an offer to   
sell securities. Investors should not subscribe for any securities referred to  
in this document, except on the basis of the information contained in a         
prospectus. Offers will not be made directly or indirectly in any jurisdiction  
where prohibited by applicable law or where any registration or prospectus or   
other requirements would apply in addition to those undertaken in Finland.      

These materials are not an offer for sale of securities in the United States or 
in any jurisdiction of the European Economic Area. Securities may not be offered
or sold in the United States absent registration or an exemption from           
registration under the U.S. Securities Act of 1933, as amended. Iittala Group   
has not registered, and does not intend to register, any portion of any offering
of its securities in the United States, and does not intend to conduct a public 
offering of its securities in the United States.                                

This press release may not be distributed or sent into the United States,       
Australia, Canada or Japan. This document is only being distributed to and is   
only directed at (i) persons who are outside the United Kingdom or (ii) to      
investment professionals falling within Article 19(5) of the Financial Services 
and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii)    
high net worth entities, and other persons to whom it may lawfully be           
communicated, falling within Article 49(2)(a) to (d) of the Order (all such     
persons together being referred to as “relevant persons”). The Offer Shares are 
only available to, and any invitation, offer or agreement to subscribe, purchase
or otherwise acquire such Offer Shares will be engaged in only with, relevant   
persons. Any person who is not a relevant person should not act or rely on this 
press release or any of its contents.                                           

This press release is an advertisement for the purposes of applicable measures  
implementing Directive 2003/71/EC (such Directive, together with any applicable 
implementing measures in the relevant home Member State under such Directive,   
the “Prospectus Directive”). A prospectus prepared pursuant to the Prospectus   
Directive will be published, which, when published, can be obtained from the    
Finnish places for subscription.                                                

Any offer of securities to the public that may be deemed to be made pursuant to 
this communication in any EEA Member State that has implemented Prospectus      
Directive is only addressed to qualified investors in that Member State within  
the meaning of the Prospectus Directive.                                        

This press release includes forward-looking statements. These forward-looking   
statements include all matters that are not historical facts, statements        
regarding Iittala Group's intentions, beliefs or current expectations           
concerning, among other things the Iittala Group's results of operations,       
financial condition, liquidity, prospects, growth, strategies and the industry  
in which Iittala Group operates. By their nature, forward-looking statements    
involve risks and uncertainties because they relate to events and depend on     
circumstances that may or may not occur in the future, and speak only as of the 
date they are made. Iittala Group cautions you that forward-looking statements  
are not guarantees of future performance and that its actual results of         
operations, financial condition and liquidity and the development of the        
industry in which Iittala Group operates may differ materially from those made  
in or suggested by the forward-looking statements contained in this             
presentation. In addition, even if Iittala Group's results of operations,       
financial condition and liquidity and the development of the industry in which  
Iittala Group operates are consistent with the forward-looking statements       
contained in this press release, those results or developments may not be       
indicative of results or developments in future periods. Iittala Group does not 
undertake any obligation to review or confirm expectations or estimates or to   
release publicly any revisions to any forward-looking statements to reflect     
events that occur or circumstances that arise after the date of this press      
release.                                                                        

Stabilization/FSA