Cramo Oyj - Company Announcement

CRAMO CONSIDERS ISSUANCE OF HYBRID BONDS AND HAS NEGOTIATED MORE HEADROOM TO THE FINANCIAL COVENANTS OF ITS SYNDICATED LOAN PACKAGE

Cramo Plc    Company announcement 7 April 2009, at 4.25 pm Finnish time (GMT+2)

CRAMO CONSIDERS ISSUANCE OF HYBRID BONDS AND HAS NEGOTIATED MORE HEADROOM TO THE
FINANCIAL COVENANTS OF ITS SYNDICATED LOAN PACKAGE                              

Cramo Plc is considering the issuance of hybrid capital bonds. The potential    
issue is expected to be launched in the near future subject to market           
conditions. The targeted minimum size of the issue is EUR 40 million. Nordea    
Markets has been appointed to act as a sole bookrunner of the potential issue.  

Hybrid bond is a bond which is subordinated to the company's other debt         
obligations and treated as equity in the IFRS financial statements. Hybrid bonds
do not confer to holders the right to vote at shareholder meetings and do not   
dilute the holdings of the current shareholders.                                

At the same time Cramo has negotiated new financial covenant terms related to   
its long-term syndicated loan package, which becomes due in 2013. The new       
financial covenant terms of the syndicated loan package are:                    

Gross debt/EBITDA:                                                              

- Year 2009: Max. 4.5 (previous terms: Max. 3.35, Q4 2009 onwards Max. 3.00) 
- Year 2010: Max. 4.25 
- Year 2011: Max. 4.00 
- Year 2012 onwards: Max. 3.50 

Interest coverage ratio:                                                        

- Year 2009: Min. 3.50 (previous terms: Min. 5.00) 
- Year 2010: Min. 4.00 
- Year 2011 onwards: Min. 5.00 

Equity ratio:                                                                   

- Year 2009 onwards: Min. 30 % (previous terms: Min. 30 %) 

Due to the change of the financial covenant terms, the margin level of Cramo's  
syndicated loan changes. The new margin level is 2.50% p.a. on the grant date.  

Cramo executes both financing arrangements pro-actively: on one hand, in order  
to strengthen the Group's capital structure, and on the other, in order to      
improve the Group's financial headroom during the economic downturn. Cramo will 
utilise the full amount of the proceeds from the hybrid capital bonds to        
decrease the Group's interest-bearing debt. As a consequence of the financing   
arrangements, Cramo Group's equity ratio is expected to improve to about 36-39% 
compared to the level of 32.4% at the end of 2008.                              

The CFO of Cramo Group, Mr Martti Ala-Härkönen, comments on the arrangements:   
“Cramo has achieved its financial targets during 2006-2008. However, due to the 
Group's fast growth and geographic expansion, the Group's gearing has           
simultaneously increased. These financing arrangements have been planned from   
the viewpoint of benefiting Cramo's shareholders. We studied several different  
financing options, and finally selected a combination whereby we simultaneously 
issue hybrid bonds to strengthen the Group's capital structure, and on the other
hand, arrange more financial headroom to the covenant terms of our long-term    
loan package.”                                                                  

CRAMO PLC                                                                       

Vesa Koivula                                                                    
President and CEO                                                               

For more information                                                            

Martti Ala-Härkönen, CFO, Cramo Plc, tel. +358 10 66110, +358 40 737 6633       

Distribution                                                                    
NASDAQ OMX Helsinki Ltd.                                                        
Major media                                                                     
www.cramo.com                                                                   

Cramo is a service company specialising in construction machinery and equipment 
rental and rental-related services, as well as the rental and sale of modular   
space. As one of the industry's leading service providers in the Nordic         
countries and Central and Eastern Europe, Cramo operates in eleven countries    
with approximately 300 depots. With a group staff of 2.600, Cramo's consolidated
sales for 2008 totalled EUR 580 million and its shares are listed on the NASDAQ 
OMX Helsinki Ltd. For further information, please visit www.cramo.com.