Neomarkka - Company Announcement

AVILON'S VISCOSE FIBER PRODUCTION SUCCESSFULLY STARTED

NEO INDUSTRIAL PLC    STOCK EXCHANGE RELEASE     12 JANUARY 2011 at 5 pm

AVILON'S VISCOSE FIBER PRODUCTION SUCCESSFULLY STARTED

Neo Industrial Plc's subsidiary Avilon has successfully started its viscose
fibre production in Valkeakoski, Finland. The first batch of fibre will be
produced for a Chinese customer this Friday, 14 January. 

Avilon's factory startup, planned for last December, was delayed as
availability of dissolving pulp - the fibre's main raw material - could not be
secured. Neo Industrial sent a release concerning the delay on 18 November
2010. Production plant was started as then planned, on 3 January 2011. 

The demand of dissolving pulp has recently risen heavily due to the drastic
rise of the price of cotton and consequently growing demand of viscose fibre.
However, the same factors enable success for Avilon's products in the future. 
Availability of dissolving pulp has been secured, which enables continuing
production for Avilon. 

One of the factory's dissolving pulp suppliers is Swedish Domsjö. Dissolving
pulp is no longer produced in Finland. 
- Availability of the raw material will probably improve this year, as new
dissolving pulp production capacity is underway in, for example, Swedenand
Canada, notes director of Avilon's production plant Claus Carlsen. 

Avilon continues the work of Kuitu Finland, filed for bankruptcy in 2008. It is
now part of Neo Industrial's Viscose Fibre business segment. 



Neo Industrial Plc

Markku E. Rentto
Managing Director

FURTHER INFORMATION:
Markku E. Rentto, Managing Director, tel. +358 207 209 191
Claus Carlsen, Director, tel. +358 40 728 8191

www.neoindustrial.fi

Neo Industrial Plc's strategy is to invest mainly in industrial companies with
similar synergic benefits. The aim of investments is with active ownership to
develop the purchased companies and establish additional value. Returns are
sought both through dividend flow and an increase in value. Neo Industrial's B
shares are listed on the NASDAQ OMX Helsinki main market.

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