Honkarakenne Oyj - Company Announcement

HONKARAKENNE LIQUIDATES ITS HOLDINGS IN KARJALAN LISENSSISAHA INVEST OY

Helsinki, Finland, 2011-02-17 14:00 CET (GLOBE NEWSWIRE) -- 

HONKARAKENNE OYJ Stock Exchange Release 17 February 2011 at 3:00 PM

HONKARAKENNE LIQUIDATES ITS HOLDINGS IN KARJALAN LISENSSISAHA INVEST OY

In a move to focus on its core business, Honkarakenne sells its 37.5% holding
in Karjalan Lisenssisaha Invest Oy to FM Timber Team Oy. The parties to the
deal have agreed not to publish the trading price. It was agreed that the
trading price be paid in installments by 30 November 2011. 

Honkarakenne's holding in Karjalan Lisenssisaha Invest Oy and in the Karlis
companies, which the former owns, has enabled Honkarakenne's participation in
the sawmill business in Russia. With the share transaction concluded now,
Honkarakenne terminates a section not part of its core business. Honkarakenne's
core business will concentrate on the manufacture of high-quality log houses. 

In future, Honkarakenne will purchase sawn timber from FM Timber Team Oy and
other sawn timber suppliers. This has no immediate impact on Honkarakenne's
business operations. 

The deal has a non-recurring positive impact on Honkarakenne's result in the
first quarter. 

In connection with the deal, it was agreed that Honkarakenne's obligation to
guarantee the loan taken out to develop Karjalan Lisenssisaha Invest Oy will
end. 

Karjalan Lisenssisaha Invest Oy owns sawn timber companies operating in Russia.



HONKARAKENNE OYJ

Esa Rautalinko

President and CEO



Further information:

President and CEO Esa Rautalinko, tel. +358 400 740 997,
esa.rautalinko@honka.com 



DISTRIBUTION

NASDAQ OMX Helsinki

Key media

Financial Supervisory Authority

www.honka.com