Honkarakenne Oyj - Company Announcement

HONKARAKENNE LIQUIDATES ITS HOLDINGS IN OY TIMBERHEART LTD

Honkarakenne Oyj Stock Exchange Release 21 December 2009 at 16.00 hours         

HONKARAKENNE LIQUIDATES ITS HOLDINGS IN OY TIMBERHEART LTD                      

On 21 December 2009, Honkarakenne completed an agreement to sell its 38% holding
in the Lahti-based provider of wooden buildings, Oy TimberHeart Ltd, to the     
company's private shareholder, Mr. Risto Kontinen. He will continue as          
TimberHeart's principal shareholder and Managing Director. The parties in the   
transaction have agreed that the sale price will remain undisclosed.            

TimberHear Oy will continue its operations as an independent company            
specialising in timber frame buildings, and the Honkarakenne factories in       
Alajärvi and Karstula will keep providing the frame sections and wooden parts of
the TimberHeart buildings, as before.                                           

Honkarakenne relinquishes its holding in TimberHeart Oy as part of its on-going 
measures to streamline the entire group's structure. Honkarakenne's own         
marketing and sales activities are focused on the promotion of the Honka brand  
in the premium customer segments of selected target markets.                    

Oy TimberHeart Ltd is a Lahti-based company which was established in 2002. The  
company provides timber frame buildings for both domestic and international     
markets. TimberHeart buildings have been on display, for example, at the Heinola
Housing Fair in 2004 and the Espoo Housing Fair in 2006.                        

HONKARAKENNE OYJ                                                                

Board of Directors  
For further information, please contact:                                        
CEO Esa Rautalinko, gsm +358 400 740997, Esa.Rautalinko@honka.com   

Distribution:                                                                   
NASDAQ OMX Helsinki                                                             
Key Media                                                                       
Financial Supervisory Authority
www.honka.com