Lassila & Tikanoja - Company Announcement

REORGANISATION OF THE BUSINESS OF LUBRICATING OIL RE-REFINING TO BE CANCELLED

LASSILA & TIKANOJA PLC   Stock exchange release   1 October 2010 9.00 am        


REORGANISATION OF THE BUSINESS OF LUBRICATING OIL RE-REFINING TO BE CANCELLED   

On 29 April 2010, Lassila & Tikanoja plc announced that Lassila & Tikanoja and  
EcoStream Oy have signed a preliminary agreement on a business arrangement based
on which Lassila & Tikanoja will sell its 50 percent holding in the joint       
venture L&T Recoil Oy to EcoStream, a co-owner. On 22 June 2010, Lassila &
Tikanoja plc announced that the deadline given to the transaction was extended  
until 30 September 2010.                                                        

However, financing needed for the transaction by EcoStream could not be         
completed as agreed in the preliminary agreement. Therefore, the preliminary    
agreement expires. L&T Recoil's assets are no longer recognised as held for-sale
assets and related liabilities.                                                 

Lassila & Tikanoja and EcoStream will continue to develop the business of       
lubricating oil re-refining together.                                           

Despite the cancellation, the earnings guidance for 2010 remains unchanged:     
full-year net sales and operating profit excluding non-recurring items are      
expected to remain at the 2009 level.                                           


LASSILA & TIKANOJA PLC      

Jari Sarjo                                                                      
President and CEO                                                               


For additional information, please contact Jari Sarjo, President and CEO, tel.  
+358 10 636 2810, or Ville Rantala, CFO, tel. +358 50 385 1442.                 

Lassila & Tikanoja specialises in environmental management and property and     
plant support services and is a leading supplier of wood-based biofuels,        
recovered fuels and recycled raw materials. With operations in Finland, Sweden, 
Latvia and Russia, L&T employs 8,700 persons. Net sales in 2009 amounted to EUR 
582 million. L&T is listed on NASDAQ OMX Helsinki.                              

Distribution:                                                                   
NASDAQ OMX Helsinki                                                             
Major media                                                                     
www.lassila-tikanoja.com