2008-01-22 14:46:50 CET

2008-01-22 14:46:55 CET


REGULATED INFORMATION

English
Rapala VMC - Company Announcement

RAPALA'S RESTRUCTURINGS IN IRELAND AND FRANCE PROCEED


STOCK EXCHANGE RELEASE

 January 22, 2008

Financial Impact of Closing the Irish Factory

As part of the restructuring and development of its lure
manufacturing operations in Europe, Rapala VMC Corporation ("Rapala")
informed in December about plans to close its lure factory in
Ireland. The manufacturing operations in Ireland will discontinue in
the end of April 2008. The average number of personnel in the Irish
factory has been declining in the last few years and was some 20
persons at the end of 2007.

The manufacturing functions of the Irish factory will be taken over
by the Group's lure factory in Estonia that will continue finalizing,
testing and packaging the products. At the same time, significant
part of assembly work is being transferred from Estonian factory to
Rapala new lure factory in Russia, established in 2007. The Russian
factory employs currently close to 50 persons.

Rapala will book a restructuring provision of 1.1 MEUR in the fourth
quarter for the costs related to the closing of the Irish factory.
After the closing of the factory and transfer of its duties to the
Estonian factory, the annual savings are expected to reach some 0.7
MEUR.

Updated Information on the Consolidation of French Operations

Consolidation of all Rapala's French operations to Morvillars in
Eastern France proceeds. This restructure will affect almost 90
persons in France, who were all offered work in the new location. The
relocation of first distribution unit, Ragot, has been completed.
Distribution unit Waterqueen and fishing line supplier Tortue moves
are planned for mid-2008 and hook distributor VMC Europe during the
third quarter of 2008.

The information on the restructuring provision to be booked in the
fourth quarter has been updated and decreased to 2.5 MEUR (original
estimate was 2.8 MEUR). In addition to the 0.1 MEUR expense booked in
the third quarter, this restructuring will cause some 0.5 MEUR other
expenses that will be booked when incurred between October 2007 and
September 2008.

Rapala sign a sale agreement for the warehouse and office building in
Saint Marcel in January 2008 and will book a capital gain of some 0.9
MEUR in the first quarter of 2008. The plan is also to sell the
warehouse and office building in Loudeac. In December, Rapala sold
its fishing tackle shop in Antibes without any significant effect on
the fourth quarter financials.

After all relocations have been made and the new consolidated
organisation is up and running, the annual savings are expected to
reach 1-2 MEUR.

RAPALA VMC CORPORATION

Jorma Kasslin
Chief Executive Officer

For further information:

Jouni Grönroos, Chief Financial Officer, tel. +358 9 7562 540
Olli Aho, Company Councel, 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.