Lännen Tehtaat - Company Announcement

CHANGE IN STRUCTURE OF THE MAJORITY SHAREHOLDING SALE OF SUOMEN REHU LTD AND AVENA NORDIC GRAIN OY

LÄNNEN TEHTAAT PLC	STOCK EXCHANGE RELEASE 	May 28, 2007                         

CHANGE IN STRUCTURE OF THE MAJORITY SHAREHOLDING SALE OF SUOMEN REHU LTD AND    
AVENA NORDIC GRAIN OY                                                           

On January 19, 2007 Lännen Tehtaat plc and SOK subsidiary Hankkija-Maatalous Oy 
signed a share-transaction agreement whereby 51% of the shares in Suomen Rehu   
Ltd and Avena Nordic Grain Oy would be transferred to the ownership of          
Hankkija-Maatalous Oy. The final closing of the transaction required approval by
the competition authorities.                                                    

At the beginning of March the competition authorities decided that the further  
investigation of the merger notification lodged by Hankkija-Maatalous was       
necessary. The merger of the grain trading operations of Avena Nordic Grain Oy  
with the grain trading by Hankkija-Maatalous Oy is believed to create a strong  
market position from the perspective of competition, so the parties to the sale 
have decided that Avena will not be included in the sale. The competition       
authorities are continuing their investigation.                                 

Lännen Tehtaat plc and Hankkija-Maatalous Oy have agreed today that the majority
shareholding sale of Suomen Rehu Ltd will go ahead. The enterprise value of the 
business operations of Suomen Rehu has been agreed at EUR 71 million. The price 
for the 51 per cent of the shareholding in the company to be sold is about EUR  
24 million. The purchaser will also assume responsibility for the net debts of  
Suomen Rehu at the moment when the closing takes place. The exact price for the 
shares will be determined on the basis of the assets and liabilities of the     
companies to be sold by the end of May. The sale of the majority shareholding in
Suomen Rehu is expected to generate a profit of about EUR 6 million.            

In connection with the sale of the majority shareholding an option scheme has   
also been agreed under which Lännen Tehtaat will, if it wishes, have the right  
to sell the remaining 49% of the shares in Suomen Rehu Ltd to                   
Hankkija-Maatalous. The latter, for its part, has a purchasing option for the   
remaining shares, which it will be able to put into effect at the earliest 15   
months after the purchase of the majority holding.                              

Lännen Tehtaat's consolidated net sales in 2006 amounted to EUR 409 million and 
the operating profit to EUR 14.5 million. The Lännen Tehtaat Group employed 981 
people during 2006. The net sales of the feed operations to be sold was about   
EUR 190 million and the operating profit under IFRS standards was EUR 9.2       
million. There were an average of 319 people working for Suomen Rehu.           

Avena Nordic Grain will continue its grain trading operations as usual as part  
of the Lännen Tehtaat Group. The net sales of Avena Nordic Grain amounted to EUR
96 million in 2006 and the operating profit to EUR 2.0 million. There were an   
average of 29 people working for Grain trading operations.                      

Lännen Tehtaat's vision is to be one of the leading Finnish food companies, and 
the company will continue to single-mindedly implement its vision. The sale of  
the feed operations will strengthen Lännen Tehtaat's financial room for         
manoeuvre and improve the company's potential for developing the food sector    
through corporate acquisitions and other corporate restructuring.               

LÄNNEN TEHTAAT PLC                                                              
Matti Karppinen                                                                 
CEO                                                                             

More details: Matti Karppinen, CEO, tel. +358 10 402 4001                       

Distribution:                                                                   
Helsinki Stock Exchange                                                         
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