Kesko Oyj - Company Announcement

VV-Auto lowers its guidance for 2007 net sales and profit in consequence of car tax change

KESKO CORPORATION STOCK EXCHANGE RELEASE 02.11.2007

VV-Auto lowers its guidance for 2007 net sales and profit in consequence of car
tax change 

VV-Auto's net sales and profit for the last months of 2007 will remain below
earlier expectations, as passenger car deliveries will be postponed to 2008 in
consequence of changes in the Finnish car taxation. 

The car tax change proposed by the government on 1 November 2007, is expected
to postpone a significant number of passenger car deliveries to customers from
2007 to 2008. For this reason, it is expected that VV-Auto's net sales for the
last quarter of 2007 will fall well short of the previous year. The total 2007
net sales are expected to match the previous year's level. 

As a result of the postponement of passenger car deliveries to customers, the
operating profit, non-recurring items excluded, for the last quarter of 2007
will also fall well short of the previous forecast. Consequently, the total
2007 operating profit excluding non-recurring items will remain somewhat below
the level of the previous year. 

If implemented, the car tax change will improve the outlook for 2008. The
demand for passenger cars, and especially for diesel-powered passenger cars, is
expected to improve markedly in 2008 compared with this year. 

The combined share of Volkswagens, Audis and Seats of diesel-powered passenger
car registrations during the earlier part of the year (1-10/2007) was 20.3%,
whereas they represented 14.8% of the first registrations of all passenger
cars. 

Further information is available from Pekka Lahti, President, VV-Auto, tel.
+358 9 758 3211. 


Kesko Corporation



Paavo Moilanen
Senior Vice President, Corporate Communications



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