Kesko Oyj - Company Announcement

Kesko's employee pension insurances transfer from the Kesko Pension Fund to Ilmarinen

KESKO CORPORATION STOCK EXCHANGE RELEASE 01.09.2010 AT 17.00 1(2)

The management of the statutory pension provision and the related insurance
portfolio of some 3,100 people employed by the Kesko Group have today been
transferred from the Kesko Pension Fund to Ilmarinen Mutual Pension Insurance
Company. The transfer is part of the plan announced on 30 December 2009 to
transfer the management of Kesko's statutory pension provision and the insurance
portfolio from the Kesko Pension Fund to Ilmarinen in two phases. The second
phase is expected to be implemented at the beginning of 2012 at the earliest.

As a result of this first phase of transfer, Kesko will recognise an €8 million
actuarial gain in the latter part of the year which will not be treated as a
non-recurring item. Starting from 1 September 2010, the pension cost for the
people concerned in this transfer of statutory pension provision will be
determined under Ilmarinen's management in accordance with the general statutory
employee pension principles.

The fair value of the Kesko Pension Fund's investment assets exceeds the amount
of its pension liabilities. The difference is recognised as pension assets in
Kesko's balance sheet. Pension assets are planned to be returned to those
employers whose statutory pension provision has now been transferred to
Ilmarinen. The returned pension assets are expected to have a positive cash flow
effect for Kesko in a total amount of about €160 million during the next six
months.

The return of assets and the second phase of the transfer are subject to the
approval of the Financial Supervisory Authority.

In addition to the statutory pension provision, the Kesko Pension Fund has
provided supplementary pension benefits to employees who joined Kesko prior to
8 May 1998 when the department A granting supplementary pension benefits was
closed. The supplementary pension provision will continue to be managed by the
Kesko Pension Fund.

The transfer of the management and insurance portfolio of Kesko's statutory
pension provision from the Kesko Pension Fund to Ilmarinen was previously
announced in a stock exchange release on 30 December 2010.

Further information:
Senior Vice President, CFO Arja Talma, Kesko Corporation, tel. +358 1053 22113
Senior Vice President Riitta Laitasalo, Human Resources, Kesko Corporation, tel.
+358 1053 22060


Kesko Corporation



Paavo Moilanen
Senior Vice President, Corporate Communications and Responsibility


DISTRIBUTION
NASDAQ OMX Helsinki
Main news media
www.kesko.fi



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