Neomarkka - Company Announcement

AVILON RESTARTS PRODUCTION

NEO INDUSTRIAL PLC    STOCK EXCHANGE RELEASE    20 April, 2011    at 12.10 pm


AVILON RESTARTS PRODUCTION

Avilon Ltd, part of Neo Industrial's Viscose Fibers business, restarts its
production on 21 April. At the end of March, Avilon was prepared for a longer
temporary shut-down that has now been avoided as the company has ensured its
pulp supply. Temporary layoffs have been avoided for the time being, and
Avilon's production will reach its normal capacity in the next few days. 

Neo Industrial communicated the possible temporary shutdown on 30 March 2011,
when it decided to prepare for it due to dissolving pulp shortage. The
Valkeakoski-based factory has run on low capacity and been under maintenance
shutdown since the beginning of April. 

Swedish Domsjö, Avilon's main dissolving pulp supplier in the first quarter,
has been sold to the Indian Birla Group. Partly due to this, there are
unfinished negotiations involved in Avilon's long-term raw material management. 

Neo Industrial Plc

Markku E. Rentto
Managing Director



FURTHER INFORMATION:
Claus Carlsen, Director, Avilon, tel. +358 20 780 0502

www.neoindustrial.fi

Neo Industrial Plc's strategy is to invest mainly in industrial companies with
similar synergic benefits. The aim of investments is with active ownership to
develop the purchased companies and establish additional value. Returns are
sought through both dividend flow and an increase in value. Neo Industrial's B
shares are listed on the NASDAQ OMX Helsinki Stock Exchange. 

Neo Industrial's business segments are Cable (Reka Cables, Expokabel, Nestor
Cables), Viscose Fibers (Avilon) and Single Family Housing (Finndomo).