Rapala VMC - Tender offer

RAPALA ACQUIRES PREMIUM CARP BAIT COMPANY DYNAMITE BAITS

Rapala VMC Corporation
Stock Exchange Release
August 27, 2010 at 7.00 p.m.


Rapala VMC Corporation (Rapala or Group) has finalized the acquisition of 100 %
of the share capital of Dynamite Baits Ltd ("Dynamite"), a manufacturer of
boilies, groundbaits, liquid attractants, pellets and bagged particle baits for
sport fishing having its manufacturing facilities and offices in Nottingham,
United Kingdom, where it employes some 60 people. The total consideration for
the deal is some GBP 5.3 million (some EUR 6.5 million).

Founded some 15 years ago, Dynamite manufactures and sells a wide range of baits
in particular for carp fishing under its main brand Dynamite Baits and a few
other brands. Dynamite is a market leader in premium carp baits in the UK and it
has a good market share of the premium carp and groundbait market in a few other
European countries. In 2009, the net sales of Dynamite were GBP 6.5 million
(some EUR 7.9 million) of which some 20% was outside the UK.

Dynamite has its own efficient distribution system in the UK securing deliveries
directly to some 1,200 sales outlets within 72 hours from receipt of order. Its
products enjoy an excellent reputation for catching fish. The acquisition of
Dynamite Baits brings Rapala into an important segment of the bait market in
which it has not been represented before."Dynamite is an ideal fit for the Rapala family of brands," said Jorma Kasslin,
CEO of Rapala. "Their products have a great reputation with anglers and are
widely known for their quality. We intend to take this quality brand to the
global marketplace via our network of Group distribution companies and to widen
their product range. As a result of the Dynamite acquisition we are able to
offer a wide range of products including baits, hooks, accessories, terminal
tackle and fishing lines to the carp fisherman. In addition, in the UK we are
able to combine the distribution of our group products with those of Dynamite.""It was a difficult decision to sell the business that was founded by my partner
and I some 15 years ago," said Marcus Twidale, Managing Director of Dynamite."But the decision was made easier knowing that the Dynamite product range,
quality and good service will continue, and that Dynamite is able to benefit
quite significantly from some distribution and product synergies as a member of
the Rapala VMC Group." Marcus will continue as the Managing Director of Dynamite
after the acquisition.

This acquisition is part of Rapala's strategy for profitable growth and it will
make Rapala a strong player in the growing carp fishing market in Europe. Carp
fishing is the fastest growing market in fishing throughout Europe. It
contributes to the Group's brand strategy and portfolio while it leverages
Rapala's unique sourcing and distribution platforms.

Rapala aims to significantly expand its sales to carp fishermen in the next few
years by more than doubling Dynamite's 2009 sales. Before this deal, Rapala had
only moderate sales of carp fishing products predominantly in France and few
East European markets.
This deal will have an immaterial effect on Rapala's 2010 full year net sales
and profitability.

RAPALA VMC CORPORATION

Jorma Kasslin
Chief Executive Officer

For further information:
Olli Aho, Legal Councel, tel. +358 9 7562 540
Jouni Grönroos, Chief Financial Officer, tel. +358 9 7562 540
Marcus Twidale, Managing Director of Dynamite Baits, tel.  + 44 115 989 2146

Distribution: NASDAQ OMX Helsinki and Main Media

Rapala VMC Corporation is a leading fishing tackle company and the global market
leader in fishing lures, treble hooks and fishing related knives and tools. The
Group also has a strong global position in other fishing categories and it is
one of the leading distributors of outdoor, hunting and winter sport products in
the Nordic countries. The Group has the largest distribution network in the
industry. The main manufacturing facilities are located in Finland, France,
Estonia, Russia and China. The Group brand portfolio includes the leading brand
in the industry, Rapala, and other global brands like VMC, Storm, Blue Fox, Luhr
Jensen, Williamson, Marttiini and Sufix. The Group, with net sales of EUR 235
million in 2009, employs more than 2 000 people in 32 countries. Rapala's share
is listed and traded on the NASDAQ OMX Helsinki stock exchange since 1998.


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Attachments:

Stock_ Exchange_Release_270810_dynamite_baits.pdf