Lemminkäinen - Company Announcement

Lemminkäinen to construct approx. 2,000 residential units in downtown St Petersburg

LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 10.2.2011 at 8:35 a.m.

Lemminkäinen to construct approx. 2,000 residential units in downtown St
Petersburg 

Lemminkäinen has signed a binding framework agreement with Lipsanen & Co. Group
for the realization of a vast residential construction project on Vasily
Island, downtown St. Petersburg. The total value of the project is
approximately 400 million euros. The construction work is estimated to start in
early 2012 and the first phase of the project to be completed in 2014 the
latest. The estimated completion of the whole project is in 2017. 

In accordance with the agreement, Lemminkäinen will build approximately 2,000
residential units in addition to business and office premises on a 5.6 hectare
lot. Lemminkäinen will be responsible for the construction, marketing and sales
related to the project. The parties have agreed not to disclose any details on
the terms of the cooperation. 

Currently, the area of land targeted for the project houses industrial
buildings. The plan is to start demolition in the summer of 2011. The
construction project will be implemented in phases and completed in
approximately six years. The site already has the first-level approvals in the
city district plan, and municipal engineering services have been provided for
the site. "In accordance with our strategy, we seek growth in the St. Petersburg
residential construction market. With this agreement, we have three
construction sites in excellent locations in St. Petersburg. In total, some
2,700 residences will be built there," states Timo Kohtamäki, President and CEO
of Lemminkäinen Corporation. "This is a significant cooperation venture, which highlights the decades of
experience both companies have in Russia. Other key parameters are the scope
and the phase of completition of the project, as well as and our shared vision
for quality- and schedule-related goals," says Juhani Lipsanen. 

LEMMINKÄINEN CORPORATION
Corporate Communications


ADDITIONAL INFORMATION:
President and CEO Timo Kohtamäki
Lemminkäinen Corporation
Tel. 02071 53263

Managing Director Juha Höyhtyä
Lemminkäinen Talo Oy International
Tel. 02071 53620

Juhani Lipsanen
Lipsanen & Co Group
Email: jal@lipsanengroup.com



Lemminkäinen Group operates in all areas of the construction sector. The
Group's business sectors are Building Construction, Infrastructure Construction
and Technical Building Services. Net sales in 2010 were approx. EUR 2.0
billion, of which international operations accounted for over a quarter. The
Group employs about 8,300 people. Lemminkäinen Corporation's share is quoted on
NASDAQ OMX Helsinki Ltd. www.lemminkainen.com