Honkarakenne Oyj - Company Announcement

HONKARAKENNE CONTINUES DEVELOPMENT PROGRAMME. HONKARAKENNE CONTINUES ITS EFFORTS IN RUSSIA, CIS-COUNTRIES AND ASIA

HONKARAKENNE OYJ Stock Exchange Release 7 October 2014 at 9 a.m.

HONKARAKENNE CONTINUES DEVELOPMENT PROGRAMME. HONKARAKENNE CONTINUES ITS
EFFORTS IN RUSSIA, CIS-COUNTRIES AND ASIA 

Honkarakenne Oyj is continuing development programme. The aim of this phase of
programme is to achieve three million euro savings. Most of the improvement
measures should be completed in 2014.  The full impact of the programme will be
apparent from the third quarter in 2015. 

The implementation of the savings programme may result to non-recurring costs
in 2014. 

Honkarakenne continues its efforts in Russia, CIS countries and Asia. According
to Honkarakenne's view the growth potential in these market areas, especially
in China, is significant. Despite the political situation the turnover in
Russia and CIS countries has developed favourably this year. "Developing the company's operational effectiveness is a key factor in securing
its long-term success. Developing sales and marketing, improving the network of
importers and distributors and developing the design and architecture of
company's products will also be the focus of attention. To ensure growth in
Finland we will put emphasis on the residential housing market and we will
strengthen our position as market leader in leisure market. Our spearhead
products will be our residential housing models which are designed according to
the Honka healthy house concept”, says CEO of Honkarakenne Oyj, Mikko
Kilpeläinen. 

Honkarakenne initiates co-operation negotiations for its Finnish personnel
concerning clerical and managerial employees, in order to improve operational
efficiency. The negotiations may lead to lay-offs, dismissals and
centralisation of workforce mainly from Tuusula to Karstula. According the
preliminary estimate the reduction of workforce is maximum 25 persons. 

HONKARAKENNE OYJ
Mikko Kilpeläinen
President and CEO
FURTHER INFORMATION 
Mikko Kilpeläinen, President and CEO, tel. +358 50 542 5884,
mikko.kilpelainen@honka.com 
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
Financial Supervisory Authority
www.honka.com