Glaston Oyj Abp - Company Announcement

GLASTON IS SELLING ITS TAMPERE FACTORY PROPERTY,AND SUBSCRIPTION COMMITMENTS OF THE PLANNED SHARE ISSUE

Helsinki, Finland, 2013-02-21 16:30 CET (GLOBE NEWSWIRE) -- Glaston Corporation
Stock Exchange Release 21 February 2013 at 17.30 

GLASTON IS SELLING ITS TAMPERE FACTORY PROPERTY, AND SUBSCRIPTION COMMITMENTS
OF THE PLANNED SHARE ISSUE 

Glaston Corporation has on 21 February 2013 signed a binding letter of intent
on the sale and leaseback of its factory property complex located in Tampere,
Finland. The buyer of the property complex is Tampereen Mummu ja Poika Oy, a
real estate group belonging to Lahtiset Yhtymä, on behalf of the real estate
companies to be formed. The value of the sale is EUR 12.5 million, of which the
estimated gain on the sale will be approximately EUR 3 million. 

In the letter of intent, the parties have agreed on signing a long term lease
contract. The annual cost effect of the rent for Glaston will be approximately 
EUR 1.1 million as of 1 April 2013. 

The property complex consists of four plots and buildings. This area covers
approximately 11 hectares and has five buildings and four unheated storage
structures. 

The prerequisite for the execution of the sale of the property complex is that
certain conditions, such as signing the lease contracts on premises to be used
by Glaston, are fulfilled. The sale is estimated to be completed by the end of
March 2013. The sale of the factory property is a part of the total arrangement
described in the stock exchange release announced by Glaston on 7 February
2013. By means of this arrangement, Glaston strengthens its financial position
and substantially reduces the amount of its interest-bearing liabilities. 

As a part of the sale of the property, it has been agreed with the buyer of the
property complex and Hymy Lahtinen Oy, an investment company of Lahtiset
Yhtymä, that Hymy Lahtinen Oy will subscribe for Glaston shares with EUR 2
million if the share issue planned by the Company is executed (“Share Issue”).
On 7 February 2013, Glaston announced in a stock exchange release that the
contingent subscription commitments of the planned Share Issue cover share
subscriptions up to a total amount of approximately EUR 8.3 million. This
amount included a subscription commitment of approximately EUR 1.5 million
given by Hymy Lahtinen Oy. The total amount of subscription commitments
received in the Share Issue increases thus by EUR 0.5 million to EUR 8.8
million due to the new subscription commitment given by Hymy Lahtinen Oy in
connection with the sale of the property. If the Share Issue is executed,
Glaston is, in case of potential oversubscription, planning to allocate new
shares first to the shareholders in proportion to their current shareholding
and thereafter to Hymy Lahtinen Oy, on the basis of the above commitment,
before allocating shares to other subscribers. More information on the planned
Share Issue will be announced if the Board of Directors decides to execute the
Share Issue. 

For further information, please contact:
Arto Metsänen, CEO and President, Glaston Corporation, Tel. +358 10 500 500
Sasu Koivumäki, CFO, Glaston Corporation, Tel. +358 10 500 500

GLASTON CORPORATION
Agneta Selroos
Director, Communications and Marketing

Glaston Corporation
Glaston is a global company developing glass processing technology for
architectural, solar, appliance and automotive applications. Our portfolio
ranges from pre-processing and safety glass machines to services. We are
dedicated to our customers' continued success and provide services for all
glass processing needs with a lifecycle-long commitment in mind. For more
information, please visit www.glaston.net. Glaston's share (GLA1V) is listed on
the NASDAQ OMX Helsinki Small Cap List. 

Distribution: NASDAQ OMX, Helsinki, key media, www.glaston.net