2007-12-21 09:30:00 CET

2007-12-21 09:30:01 CET


OKO Pankki Oyj - Tender offer

OKO Bank to Buy K-Rahoitus and Expand Its Operations in the Baltic Countries


OKO Bank to Buy K-Rahoitus and Expand Its Operations in the Baltic Countries    

OKO Bank plc (Pohjola Bank plc as of 1 March 2008) will buy the entire share    
capital of K-Rahoitus Oy, a subsidiary of Kesko Corporation. OKO Bank and Kesko 
signed the deal on 21 December 2007, agreeing on a sales price of about EUR 30  
million, of which goodwill accounts for about EUR 12 million. The final sales   
price will be determined on the basis of the equity on the execution date and   
the fixed goodwill. The sale will be concluded once all the official procedures 
have been completed in the early part of 2008.                                  

The two companies also agreed on cooperation according to which K-Rahoitus will 
continue to offer financing services to Kesko Agro and Konekesko customers.     
Existing customers continue to be served without interruption.                  

K-Rahoitus offers financing services to corporate customers, mainly to          
professional customers of Kesko Agro and Konekesko and agricultural retailers in
Finland, Estonia, Latvia and Lithuania. The company's loan portfolio stood at   
about EUR 260 million on 30 September 2007.                                     

K-Rahoitus employs 22 people, 15 of which work in the Baltic countries. The     
entire staff will move to work under OKO Bank Group.                            

The acquisition of K-Rahoitus strengthens OKO Bank's position as a provider of  
lease finance services in Finland. The Group's banking operations will also     
expand in the Baltic countries.                                                 

'Both OKO Bank's and OP-Pohjola Group's corporate customers have expanded their 
operations in the Baltic countries, so we too want to increase our services in  
this quickly growing market,' says Timo Ritakallio, OKO Bank's Deputy CEO. 'This
deal and the related cooperation agreement will further deepen the work we      
started together in 2006,' continues Mr Ritakallio.                             

It will also enable us to develop financing services into a much more extensive 
package and to offer it to a wider number of potential customers in Estonia,    
Latvia and Lithuania. Until now, OKO Bank has served its customers across the   
Gulf of Finland primarily through its partners. The bank has had a              
representative office in Tallinn since 1994.                                    

The acquisition of K-Rahoitus is in line with OKO Bank's strategy. The Group    
recently updated its strategy (see company release on 27 November 2007) and will
focus more on its international services. One of the objectives is to continue  
to expand and develop the Baltic operations both in the field of Banking and    
Non-life Insurance.                                                             

OKO Group carries out non-life insurance operations through the Seesam companies
it owns in the Baltic countries. The Seesam companies offer their customer      
comprehensive insurance services in Estonia, Latvia and Lithuania. Seesam       
International Insurance Company Ltd, which operates in Estonia, was established 
in 1991, with the Latvian and Lithuanian companies getting their operating      
licences in 1993 and 1998, respectively.                                        

The acquisition will have no effect on OKO Bank Group's 2008 earnings.          
OKO Bank plc is a Finnish financial services company providing banking,         
investment and non-life insurance services, and Ranks among Finland's leading   
commercial banks and non-life insurance companies. It has around 30,000         
shareholders and its Series A share has been listed on the Helsinki Stock       
Exchange since 1989. OKO Bank plc will change its name to Pohjola Bank plc on 1 
March 2008.(www.oko.fi)                                                         

K-Rahoitus Oy offers financing services to corporate customers, mainly to       
professional customers of Kesko Agro and Konekesko and agricultural retailers in
Finland, Estonia, Latvia and Lithuania. The company employs 7 employees in      
Finland and 15 in the Baltic countries. The entire staff will move to work under
OKO Bank Group.                                                                 

Kesko (www.kesko.fi) is a Finnish retail specialist whose stores offer quality  
to the daily lives of consumers through valued products and services at         
competitive prices. Kesko has about 2,000 stores engaged in chain operations in 
the Nordic and Baltic countries and Russia.                                     

OKO Bank plc                                                                    


Markku Koponen                                                                  
Senior Vice President                                                           

DISTRIBUTION                                                                    
OMX Nordic Exchange Helsinki                                                    
London Stock Exchange                                                           
SWX Swiss Exchange                                                              
Major media                                                                     
www.oko.fi                                                                      
FOR MORE INFORMATION, PLEASE CONTACT:                                           
Timo Ritakallio, Deputy CEO of OKO Bank, tel. +358 500 536 346