Neste Oil - Company Announcement

Court of Arbitration rules on contract dispute between Neste Oil and YIT

The Finnish Court of Arbitration has issued Arbitration Award on the
contract dispute between Neste Oil and YIT Industrial and Network
Services. The Court has found that the contract was not completed
according to the agreed timetable for reasons attributable to YIT and
has ruled as a result that YIT must pay Neste Oil the full delay
penalties specified in the contract between the two companies, a
total of some EUR 6.5 million. The Court has limited YIT's liability
for delay, however, to the maximum amount of the delay penalties.
This limitation was based on the General Terms for Building Contracts
in Finland.

The Court of Arbitration has also ruled that YIT must pay damages to
Neste Oil in the sum of EUR 500,000 for failing to inform Neste Oil
of the delays affecting the contract that YIT was aware of. Under the
terms of the ruling, YIT will also be required to pay Neste Oil a
total of some EUR 370,000 in respect of other breaches of contract.

The Court of Arbitration rejected all the claims lodged by YIT
related to prolongation of the contract period.

The Court has also ruled that Neste Oil must pay a total of
approximately EUR 5.1 million to YIT in respect of contested
contractual payments due to YIT. Neste Oil had also thus far withheld
uncontested contractual payments due to YIT, totaling some EUR 3.6
million.

The dispute between Neste Oil and YIT relates to disagreements linked
to the final financial settlement of mechanical installation work on
diesel production line 4 at Neste Oil's Porvoo refinery, which was
completed and came on stream in summer 2007. The dispute was put
before the Court of Arbitration in April 2008.

Neste Oil claimed total damages of EUR 107 million from YIT, of which
EUR 38.5 million related to contract delays and some EUR 68.5 million
to subsequent lost production. YIT lodged counter claims against
Neste Oil totaling some EUR 25 million, primarily based on work
carried out under the contract and additional costs incurred due to
prolongation of the project. Both parties contested each other's
claims.

The Arbitration Award is final.


Neste Oil Corporation
Hanna Maula
Director, Corporate Communications


Further information: General Counsel Matti Hautakangas, tel. +358
(0)10 458 5350


Neste Oil in brief

Neste Oil Corporation is a refining and marketing company
concentrating on low-emission, high-quality traffic fuels. The
company is the world's leading supplier of renewable diesel. Neste
Oil's refineries are located in Porvoo and Naantali in Finland and
have a combined crude oil refining capacity of approx. 260,000 bbl/d.
The company had net sales of EUR 15 billion in 2008 and employs
around 5,300 people. Neste Oil's share is listed on NASDAQ OMX
Helsinki.

Neste Oil is included in the Dow Jones Sustainability World Index and
the Ethibel Pioneer Investment Register. The company has also been
awarded 'Best in Class' recognition for its social accountability by
Storebrand and is included in Innovest's Global 100 list of the
world's most sustainable corporations. For further information, see
www.nesteoil.com.