Kesko Oyj - Company Announcement

Intersport operations in Russia to be transferred to Kesko

KESKO CORPORATION STOCK EXCHANGE RELEASE 03.06.2011 AT 18.15 1(2)

Kesko has today signed agreements on the transfer of the INTERSPORT licence in
Russia to Kesko with Intersport International and the current licence holder
Intersport CIS. According to the letter of intent signed at the same connection,
Kesko will establish a new company for INTERSPORT operations in Russia together
with Melovest, the owner of the current licence holder Intersport CIS. Melovest
will become a shareholder of the new company with an ownership of 20%.

According to the key terms and conditions of the arrangement agreed today, the
joint venture will acquire 36 stores mainly in the St. Petersburg and Moscow
areas from companies currently engaged in INTERSPORT operations. In the future,
the aim is to vigorously expand the INTERSPORT store network. The purchase price
paid for the financial assets and support functions to be transferred in the
arrangement will be determined on the basis of the reviewed value at the time of
transfer."INTERSPORT is one of the best-known brands in the world in sports retailing,
and the chain has achieved a strong position in the European market. INTERSPORT
is a clear market leader in Finland and the INTERSPORT brand has good growth
potential in Russia," says Matti Leminen, Senior Vice President, home and
speciality goods trade."As shareholder and INTERSPORT Licensee for Finland, Kesko is a very
professional and reliable partner for IIC, the suppliers and all other
stakeholders. INTERSPORT's high market share and the successful launch of Budget
Sport are proof of an impressive track record on the Finnish market. Kesko's
respective know how, market power and financial strengths combined with the
closeness of the current INTERSPORT organisation to the Russian market and their
consumers are an ideal strategic fit and can be considered as a win-win
situation for all parties involved. With this joint venture, INTERSPORT will
sustainably grow within the Russian market and play a major role as an
authentic, expert authority, multi-sport retailer," says Franz Julen, CEO IIC-
INTERSPORT International Corporation.

The plan is to carry out the business arrangement by the end of this year. The
implementation is subject to a final agreement on all the terms and conditions
of the arrangement, approval by Russian competition authorities and the
fulfilment of other implementation terms and conditions related to the transfer
of financial assets. The arrangement is not expected to have a material impact
on Kesko's sales, performance or financial position during the next 12 months.

ICC-Intersport International Company GmbH is an international sports retail
marketing chain which consists of national companies and was established in
1968. The headquarters are located in Bern, Switzerland. There are more than
5,300 INTERSPORT stores in 39 countries and the retail sales totalled €10.2
billion in 2010. Kesko has been a shareholder of the company since 1992. There
are 56 INTERSPORT stores in Finland, and Intersport Finland Ltd is the market
leader in sports retailing.

In its stock exchange release of 4 April 2011, Kesko said that it will
vigorously increase its operations in Russia. Kesko Food will expand its
operations by constructing new stores. The capital expenditure is estimated at
€300 million in 2011-2015. At the same time with greenfielding, Kesko Food will
continue to explore business acquisition opportunities in both St. Petersburg
and Moscow.

Rautakesko has currently 13 K-rauta stores in Russia, ten of which are located
in St. Petersburg and three in nearby areas of Moscow. There are two K-rauta
stores under construction, which will be opened in Moscow in late 2011. The plan
is to open ten more new K-rauta stores in 2012-2015. The capital expenditure
will be some €300 million.

Further information:
Matti Leminen, Senior Vice President, home and speciality goods trade, Kesko
Corporation, tel. +358 50 65653
Juha Nurminen, President, Intersport Finland Ltd, tel. +358 50 525 3847


Kesko Corporation



Merja Haverinen
Senior Vice President, Corporate Communications and Responsibility


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NASDAQ OMX Helsinki
Main news media
www.kesko.fi


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