Uponor - Company Announcement

Uponor divests its German OEM unit

Uponor Corporation             Stock Exchange Release                 24
January 2012  15.00 EET 

Uponor divests its German OEM unit

Uponor (Deutschland) GmbH, member of the Uponor Group has today signed a
contract to divest the entire share capital of Hewing GmbH, Uponor's non-core
OEM unit based in Ochtrup, Germany. The buyer is Rettig Germany GmbH, a member
of the Finnish heating technology manufacturer Rettig Group. 

The deal, at a value of €11.9 million, leads to an impairment write-down of
€10.5 million for the financial year 2011, impacting the operating profit of
continuing operations. For this reason, Uponor's full-year operating profit for
2011 will remain clearly below the previous year's level. 

In 2011, Hewing GmbH generated net sales of nearly €50 million, and employed a
staff of 230 persons. Operating under its own brand name, Hewing has served as
an OEM pipe manufacturer to various central European underfloor heating and
plumbing system brands. Hewing's PEXc pipe technology has been non-core for
Uponor after the global brand realignment in 2006, resulting in a stronger
focus on the Uponor multi-layer composite and PEXa pipe technologies in
building solutions. 


Uponor's CEO Jyri Luomakoski comments on the deal:

  -- The business environment for OEM manufacturing has weakened in Europe in
     recent years, and the evolution was speeded up by the difficult market
     conditions in the past few years. This has severely impacted performance,
     with little room for improvement in the current setup.
  -- We are happy to have found a buyer who can bring a considerable own volume
     to Hewing. I believe this is a favourable move for the entire industry that
     is faced with idle capacity especially in central Europe. I trust the deal
     will bring optimism about the future amongst the personnel of Hewing.
  -- The deteriorating performance of Hewing in the recent years has had a
     notable impact on Uponor's consolidated results. In addition to operating
     profit, the divestment will have a positive impact on our future cash flow
     from operations and gearing.

The deal is effective 1 January 2012, pending on certain factors, such as an
approval from competition authorities. The closing of the deal is expected to
take place in March-April 2012. 

Uponor will continue to have a presence in the Ochtrup region where it has some
warehousing, administration and marketing services related to the PEXa
technology-based business under the Uponor brand. 

Uponor acquired Hewing GmbH in early 1988 as its first step in the strategy to
enter the growing market of hot water pipe systems for buildings. Hewing's
advanced know-how of cross-linked polyethylene pipe (PEXc) technology and its
access to new customer segments in Germany have played a key role in Uponor's
journey towards its leading international position as a supplier of building
solutions in Europe and North America. 


For further information, please contact:
Jyri Luomakoski, President and CEO, tel. + 358 20 129 2824
Riitta Palomäki, CFO, tel. + 358 20 129 2822



Uponor Corporation


Tarmo Anttila
Vice President, Communications
Tel. +358(0)20 129 2852



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www.uponor.com

Uponor is a leading international provider of plumbing and indoor climate
solutions for residential and commercial building markets across Europe and
North America. In Northern Europe, Uponor is also a prominent supplier of
infrastructure pipe systems. Uponor offers its customers solutions that are
technically advanced, ecologically sustainable, and safe and reliable to own
and operate. The Group employs approx. 3,200 persons, in 30 countries. In 2010,
Uponor's net sales totalled €750 million. Uponor Corporation is listed on
NASDAQ OMX Helsinki in Finland. http://www.uponor.com.