Tiimari Oyj Abp - Company Announcement

Tiimari acquires Swedish retail chain Gallerix

Tiimari Plc Stock Exchange Release 1 November 2007                              


Tiimari acquires Swedish retail chain Gallerix                                  

The acquisition creates a prominent Nordic retail chain specialising in home    
decoration items, arts and crafts and seasonal products that has approximately  
300 stores in seven countries. The acquisition creates a solid base for         
reproducing multiple concepts for several market areas.                         


Finnish Tiimari group acquires the Swedish retail chain Gallerix under the      
transaction signed on 1 November 2007. The Gallerix chain operates mainly on the
franchising principle. The basic purchase price for the shares in Gallerix      
International AB is MSEK 65.5 (approx. MEUR 7.1) with an additional purchase    
price of a maximum of MSEK 21 (approx. MEUR 2.3). The amount of the additional  
purchase price depends on Gallerix's financial development up to the end of the 
year. Approx. 30% of the basic purchase price will be paid by offering an       
aggregate of 463,320 newly issued Tiimari Plc shares for subscription by the    
sellers and the remainder with available credit limits. The mentioned share     
issuance will be effected on or around 12 November 2007 based on the authority  
granted to Tiimari Plc's Board of Directors by the annual general meeting.      
Tiimari is also entitled to pay 30% of the possible additional purchase price in
shares, which will be announced later.   Gallerix will be consolidated with     
Tiimari's figures as of 1 November 2007.                                        


Gallerix is the leading Swedish retail chain specialising in framed prints,     
framing services and frames, home decoration and gift wrapping items and cards. 
The company has 92 stores in Sweden.  In May 2007, Gallerix opened its first    
store in Finland in the Sello shopping centre in Leppävaara, Espoo, west of     
Helsinki. The primary objective of Tiimari is to drive Gallerix's growth in     
Finland. The secondary objective is to continue the expansion in the Baltic     
region and in Russia according to Tiimari's own strategy. The business concept  
of Gallerix is to offer a wide selection of various middle-priced wall          
decoration products.                                                            
                                                                                

The acquisition is estimated to achieve definite synergies, particularly with   
regard to purchasing and logistics. The synergies will also be reflected as     
price advantages enabled by achieved volumes and the benefits from the          
integration of overlapping operations. The total annual value of these synergies
is estimated to be over MEUR 1.  They are estimated to realise in full within   
the next two-year period.                                                       


Tiimari will profit from Gallerix's measurable franchising expertise, solid     
knowledge of the Swedish markets and the opportunity to establish a more        
extensive clientele. The merger will boost domestic business growth. The        
established company will be a more favourable partner to shopping centres and   
other store facility leaseholders through the combined appeal of two vibrant    
brands. The combination of these strong brands will strengthen the position of  
the new company also when obtaining new business facilities in the Baltic       
countries, Poland and in Russia.                                                


The Gallerix retail concept fits the Finnish market well. In addition to        
individual specialized stores, mainly home decoration departments of department 
stores are currently focusing on the increasingly popular wall furnishing and   
decoration trend in Finland. Tiimari Plc is planning to convert and open several
stores under the Gallerix concept within the next year.                         


”Gallerix adds a new dimension to Tiimari's strong penetration to the home      
decoration market. Gallerix's area-specific know-how in wall decoration adds    
depth to our product selection. Gallerix's position as ”Everyman's Gallery” is  
applicable to Tiimari's target group as well”, Kristina Illi, CEO of Tiimari Plc
states. ”We are able to utilise our purchasing and logistics expertise          
effectively to the benefit of both companies. Furthermore, the merger creates   
definite synergies with regard to the internationalisation of the companies.    
Tiimari will also benefit from Gallerix's significant franchising experience and
competence”, Illi continues.                                                    

”We see Tiimari as the ideal partner with excellent know-how in purchasing and  
logistics”, Thomas Sonesson, Managing Director of Gallerix continues. ”Gallerix 
is in need of a powerful owner who can facilitate the development of our        
business operations. Our joint venture with Tiimari will strengthen our concept 
further, considering that we are both reputable retail experts. Gallerix and    
Tiimari operate on similar markets but through different strategies targeted at 
different target groups. Tiimari represents the optimal owner for Gallerix”,    
Thomas Sonesson describes the motives of the acquisition.                       

Gallerix 12-month turnover to 31 August 2007 was MSEK 116 (c. MEUR 12,55).      
Gallerix franchise retail turnover for the equivalent period was MSEK 250 (c.   
MEUR 27).                                                                       
Tiimaris Interim report for July-September 2007 is released on November the     
12th.                                                                           

Press conference, Eteläesplanadi 14, Restaurant Savoy on the 7th floor, 1       
November 2007 at 14.30.                                                         

Tiimari Plc is the leading Nordic and Eastern-European retail store chain       
specialising in home decoration, arts and crafts and gift wrapping items, cards,
office and school supplies and seasonal products. Tiimari has 160 stores in     
central business locations in Finland, 14 in Estonia, 4 in Latvia, 3 in Poland  
and one in Norway and 9 franchising stores in Sweden. One store will be opened  
in Russia for the Christmas season 2007.                                        
TiiMore Oy is a business gift merchandiser with a versatile and high quality    
assortment of business gifts. It provides comprehensive solutions according to  
its customer-oriented operations model. In addition to using traditional sales  
representatives, TiiMore implements a web-based sales concept.                  

Gallerix was established in Uppsala in 1974. It has 92 stores in central        
business locations in Sweden and one store in Finland. Expansion into the       
international markets has a central role in the Gallerix growth strategy.       
Gallerix's product selection is built around wall decoration products (framed   
pictures, frames, posters) as well as cards. In addition, the selection includes
elegant gift items and gift wrapping supplies.