Neo Industrial Oyj - Company Announcement

AVILON’S PAPER PULP VISCOSE TECHNOLOGY INTO GLOBAL DISTRIBUTION

NEO INDUSTRIAL  PLC        STOCK EXCHANGE RELEASE             7 March 2012 at
18.00 pm 

Neo Industrial's Viscose Fibre segment and Swedish CellMark Ab have signed a
Letter of Intent for global distribution of PPV-technology (Paper Pulp Viscose
technology). The new technology enables the usage of paper pulp in the viscose
manufacturing process and offers a competitive raw-material solution for
viscose manufacturers. 

Cellmark will be selling and marketing the technology and licenses developed by
Avilon, as well as distributing the end-product to viscose industry through its
pulp, paper, packaging and chemical product division network. Cellmark is a
supply chain service companty operating in 28 countries. 

With this contract Avilon will reach global markets for the new technologies.

The latest technology has been developed and applied in industrial scale at
Avilon Ltd's 
viscose fibre plant in Valkeakoski, Finland. “Our production scale experience
of PPV-technology is excellent.  The feedback from our customers indicates that
the quality of our products was further improved after starting to use 
PPV-technology in 2011. Selling licenses is a new and profitable business area
for Avilon”, says Sari Tulander, Managing Director of Avilon Ltd. "The PPV concept fits very well into our business idea and our operations" says
Fredrik Anderson, Senior Vice President General Manager Pulp Division of
CellMark AB. 

The production of Avilon was discontinued last summer and the company started
restructuring process in September. However, the research and developing
projects have continued actively by the technology company Carbatec Ltd. 

Markku E. Rentto

Neo Industrial Plc

For further information, please contact:

Sari Tulander, Managing Director, Avilon Ltd, tel. +358 207 800 500

Heikki Hassi, Managing Director, Carbatec Ltd, tel. + 358 207 800 506

www.neoindustrial.fi

www.cellmark.com

Neo Industrial'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
class 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). 

The CellMark Group is a global supply chain service company that provides
valuable business links between manufacturers and customers in thechemicals,
metals, pulp and paper industry. Its range of services makes itmuch more than
just a marketing company. Sales, marketing, trade finance, 
risk management and logistic services are all part of CellMark's core business.

CellMark Group's activity is structured around six specialized product
divisions: Pulp, Paper, Packaging, Recycling, Chemicals and Metals. Theproduct
divisions are supported by the group's own global network of about65 offices in
28 countries and by a large number of representatives in 
other markets. CellMark's sourcing activity extends to over 60 countries.For
the complete CellMark office network, please refer to  www.cellmark.com