Neo Industrial Oyj - Company Announcement

DEMERGER OF NEO INDUSTRIAL POSTPONED FROM ESTIMATED DATE

Neo Industrial Plc      Stock Exchange Release      21 December 2012 at 2.00 pm

On 16 August 2012, the board of directors of Neo Industrial Plc signed a
demerger plan according to which Neo Industrial Plc will partially demerge so
that part of its assets and liabilities will transfer without liquidation
procedure to a newly established public limited liability company, Avilon Plc.
In accordance with the demerger plan, the estimated implementation date for the
demerger is 1 January 2013. 

Five of Neo Industrial Plc's creditors with total potential guarantee claims,
long-term lease agreement and other claims of EUR 17 million plus interest and
expenses have stated their opposition to the demerger by the due date of 10
December 2012 provided for in the public announcement made to the creditors in
connection with the demerger process. Due to the opposition, the demerger will
lapse within one month of the due date, i.e. on 10 January 2013, unless the
company and the creditors opposed to the demerger can reach an understanding in
the matter. Neo Industrial Plc is negotiating with the creditors opposed to the
demerger in order to resolve the matter and continue the demerger process and
register the demerger as soon as possible. 



Neo Industrial Plc
Board of Directors

Further information:
Markku E. Rentto, Chairman of the Board, tel. +358 207 209 191

www.neoindustrial.fi

Neo Industrial'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
class B shares are listed on the main list of NASDAQ OMX Helsinki Stock
Exchange. Neo Industrial's business segments are Cable and Viscose Fibers.