Finanssivalvonta - Company Announcement

Honkarakenne Oyj publically reprimanded for failing to comply with regular disclosure requirements

Press release 1 September 2010

Honkarakenne Oyj publically reprimanded for failing to comply with regular
disclosure requirements 

The Financial Supervisory Authority (FIN-FSA) has issued a public reprimand to
Honkarakenne Oyj for failing to comply with issuer's regular duty to release
information. Neither the company's annual reports nor financial statements of
2003-2008 contain any information about the shareholder agreement concluded and
announced on 21 April 1990. This had passed unnoticed until FIN-FSA's
prospectus examination in connection with the company's share issue in early
2010. 

Furthermore, neither Honkarakenne Oyj's annual reports nor financial statements
of 2003-2008  contain any information regarding the bodies, known to the
company, that exercise decision-making power in the company or any mention of
the shareholder agreement, known to the company, that relates to the
shareholdings and use of voting rights. By virtue of the Ministry of Finance
Decree on the regular disclosure requirements of listed companies, such
information must be disclosed. 

One of the key principles of securities market legislation is to ensure that
investors have access to the regulatory timely information on investment
outlets and factors that may have a material impact on their value. Taking into
account that a considerable time had elapsed since the announcement of the
shareholder agreement, this cannot be regarded as being commonly known to
investors. 

Legislation empowering FIN-FSA to impose administrative sanctions did not enter
into force until 1 July 2003. Hence, FIN-FSA has not retroactively examined any
information on shareholder agreements announced before this date. 

The public reprimand does not yet have legal force. Honkarakenne Oyj has the
right to appeal against this decision of 1 September 2010 to the Helsinki
Administrative Court within 30 days of receipt of the decision. 

For more information, please contact 
Jarmo Parkkonen, Head of Department, telephone +358 10 831 5255.

Appendix
Decision by the Financial Supervisory Authority (in Finnish)

Attachments:

julkinen_huomautus_honkarakenne_010910.pdf