Neomarkka - Company Announcement

FINNDOMO'S SWEDISH SUBSIDIARY STARTS CORPORATE REORGANIZATION

NEO INDUSTRIAL PLC    STOCK EXCHANGE RELEASE    23 February, 2011 at 4.20 pm



FINNDOMO'S SWEDISH SUBSIDIARY STARTS CORPORATE REORGANIZATION

Neo Industrial's Single Family Housing industry company Finndomo's Swedish
subsidiary, Finndomo AB, has today applied for a corporate reorganization with
the district court of Eksjö, Sweden. The application was accepted a while ago. 

The reorganization decision concerning the Swedish operation follows Finndomo
Group's strategy change, according to which the company intends to concentrate
on its business in Finland, the Baltics and Russia. Finndomo also continues
with measures to improve its profitability throughout the Group. Swedish
Finndomo AB is now going to locally look for the best long-term financing
solution for itself. 

Due to the quicker than expected revival of the prefabricated house market and
rising demand, Finndomo strengthens its dealer network in Finland. The company
has also made an investment decision of increasing the capacity of its Hartola
house factory as needed. The company is currently working on or planning
regional housing projects of over 300 apartments in Finland. 

Following the strategy change, Finndomo is also going to seek growth from the
Baltics and Russia. The company is going to strengthen its dealer network as
well as its regional housing project business in Russia. 


Neo Industrial Plc



Markku E. Rentto
Managing Director



FURTHER INFORMATION:
Markku E. Rentto, Managing Director, Neo Industrial, tel. +358 207 209 191



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 through both dividend flow and an increase in value. Neo Industrial's B
shares are listed on the NASDAQ OMX Helsinki Stock Exchange.