Lassila & Tikanoja - Company Announcement

PRELIMINARY AGREEMENT ON BUSINESS OF LUBRICATING OIL RE-REFINING

LASSILA & TIKANOJA PLC   STOCK EXCHANGE RELEASE   29 April 2010 7.30 am


PRELIMINARY AGREEMENT ON BUSINESS OF LUBRICATING OIL RE-REFINING

Lassila & Tikanoja plc and EcoStream Oy have signed a preliminary agreement on
a business arrangement based on which Lassila & Tikanoja will sell its 50
percent holding in the joint venture L&T Recoil Oy to EcoStream, a co-owner.
The preliminary selling price totals EUR 2.5 million paid in cash and a
potential additional selling price of a maximum of EUR 1.0 million, plus
slightly under 20% of EcoStream's share capital. 

L&T Recoil re-refines used lubricant oils in Hamina, Finland. The main product
of the company is base oil, which is the principal raw material for lubricant
oils. The annual capacity of L&T Recoil's re-refinery is 60,000 tons. 

The agreed reorganisation will dissolve joint ownership. It will enable the
re-refining business to be developed more flexibly. 

Lassila & Tikanoja currently estimates that it will recognise a capital gain of
around EUR 25 million on the arrangement, once it is finalised. The
arrangement's cash flow effect is estimated to be some EUR 20 million positive,
involving the repayment of capital loans and the cash portion of the share
transaction price. 

The transaction related to the preliminary agreement is intended to be
completed by the end of June 2010, on condition that the financing and the
share issue needed for the transaction by EcoStream will be completed. 

LASSILA & TIKANOJA PLC


Jari Sarjo
President and CEO



For additional information, please contact Jari Sarjo, President and CEO, tel.
+358 10 636 2810 or Ville Rantala, CFO, tel. +358 50 385 1442. 

Lassila & Tikanoja specialises in environmental management and property and
plant support services and is a leading supplier of wood-based biofuels,
recovered fuels and recycled raw materials. With operations in Finland, Sweden,
Latvia and Russia, L&T employs 8,700 persons. Net sales in 2009 amounted to EUR
582 million. L&T is listed on NASDAQ OMX Helsinki. 

Distribution:
NASDAQ OMX Helsinki
Major media
www.lassila-tikanoja.com