Rapala VMC - Company Announcement

RAPALA PLANS TO CONSOLIDATE ITS OPERATIONS IN FRANCE

STOCK EXCHANGE RELEASE

July 2, 2007

Rapala VMC Corporation ("Rapala") has today informed its labour
representatives of its French distribution business units about plans
to consolidate all French operations to Morvillars in the Eastern
France. Today, the French distribution unit Ragot is located in
Loudeac, Normandie, distribution unit Waterqueen and line supplier
Tortue in Saint Marcel in Mid-France and hook manufacturing unit VMC
and hook distribution unit VMC Europe in Morvillars.

With the consolidation of the operations to one location in France,
the Group plans to gain major savings and efficiency improvements in
deliveries and transportation, customer service and marketing,
procurement and supplies, maintenance, organisational synergies and
other location and logistic benefits. All in all, these changes would
help to improve the competitiveness of the French operations in the
tough competition in the fishing tackle market.

The plan is to move the operations from Loudeac and Saint Marcel to
Morvillars and also move the operations of VMC Europe to the same
premises. These plans would affect some 86 persons in France who are
all offered work in the new location. The plan is that the relocation
of Ragot would take place during the second half of 2007, Waterqueen
and Tortue in mid-2008 and VMC Europe during the third quarter of
2008. The plan is also to invest in the line spooling and some other
facilities to further improve the operations. The plan is also to
sell the warehouse and office buildings in Loudeac and Saint Marcel
and lease a new joint premise for these operations in Morvillars. The
financial impact of the plan is yet unknown."This plan is a major change for our operations in France but we need
to consider it to improve our competitiveness and to ensure that we
can continue with major manufacturing and distribution operations in
France in the future despite tough competition," states Stanislas de
Castelnau, Head of Fishing Hook Business & Distribution in France.

RAPALA VMC CORPORATION

Jorma Kasslin
Chief Executive Officer

For further information:

Jouni Grönroos, Chief Financial Officer, tel. +358 9 7562 540

Distribution:

Helsinki Stock Exchange
Main Media

Rapala VMC Corporation is a leading fishing tackle company and the
global market leader in the fishing lures, treble hooks and fishing
related knives and tools. The Group also has a strong global position
in other fishing categories. The Group has its own distribution
companies in all the main markets and the largest distribution
network in the industry. The main manufacturing facilities are
located in Finland, France, Estonia 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 and Marttiini. The Group, with net sales of EUR
227 million in 2006, employs more than 4,000 people in 29 countries.