Kesko Oyj - Company Announcement

Kesko Corporation's Board of Directors decided to grant stock options

KESKO CORPORATION STOCK EXCHANGE RELEASE 18.07.2007

Kesko Corporation's Board of Directors decided to grant stock options

Kesko Corporation's Board of Directors has decided to grant the year 2007 stock
options, decided by the Annual General Meeting of 26 March 2007, to persons in
the Kesko Group management, other key Kesko personnel, and to Sincera Oy, a
subsidiary wholly owned by Kesko Corporation. 

Kesko Corporation's Annual General Meeting held on 26 March 2007 decided to
grant a total of 3,000,000 stock options for no consideration to persons in the
Kesko Group management, other key Kesko personnel, and to Sincera Oy, a
subsidiary wholly owned by Kesko Corporation. The stock options are part of
Kesko's share-based incentive plan. 

Each stock option entitles its holder to subscribe for one new Kesko
Corporation B share. Of the stock options 1,000,000 shall be marked with the
symbol 2007A, 1,000,000 with the symbol 2007B and 1,000,000 with the symbol
2007C. 

Now 2007A options were granted to approximately one hundred persons in the
Kesko Group management and other key personnel. The remaining options were
granted to Sincera Oy to be granted later on to option recipients employed by
Kesko or to be hired by Kesko. 

The year 2007 stock options entitle to subscribe for a maximum number of
3,000,000 new Kesko Corporation B shares in aggregate. The share subscription
price for stock option 2007A shall be the trade volume weighted average
quotation of a Kesko Corporation B share on the Helsinki Stock Exchange between
1 April and 30 April 2007, for stock option 2007B, between 1 April and 30 April
2008, and for stock option 2007C, between 1 April and 30 April 2009. The
subscription prices of shares subscribed for with stock options shall be
reduced by the amount decided after the beginning of the period for the
determination of the subscription price but before the subscription as at the
record date for each distribution of funds referred to in the terms and
conditions. The share subscription price shall be recognised in the company's
reserve of invested non-restricted equity. 

The exercise period for 2007A options will be from 1 April 2010 to 30 April
2012, for 2007B options from 1 April 2011 to 30 April 2013, and for 2007C
options from 1 April 2012 to 30 April 2014. 

The stock options include an obligation to share ownership. Option recipients
are obliged to buy company shares for permanent ownership for the value of 25%
of the proceeds from the sale of stock options. 

The matter was last announced in a stock exchange release concerning the
decisions of the Annual General Meeting on 26 March 2007. 

Further information is available from Riitta Laitasalo, Senior Vice President,
Human Resources, tel. +358 1053 22060. 


Kesko Corporation



Paavo Moilanen
Senior Vice President, Corporate Communications


DISTRIBUTION
Helsinki Stock Exchange
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