Tulikivi Oyj - Company Announcement

Tulikivi Corporation: Court of Appeal dismisses breach of obligation to cooperate

TULIKIVI CORPORATION                         STOCK EXCHANGE RELEASE

                                                                    December 9,
2014 at 10.00 



Court of Appeal dismisses breach of obligation to cooperate

Tulikivi Corporation's stock exchange release of 11 October 2013 about a
decision of the District Court of Varsinais-Suomi stated that the district
prosecutor from the Prosecutor's Office of Western Finland had pressed charges
against Heikki Vauhkonen, Managing Director of Tulikivi Corporation, and Jouko
Toivanen, CFO of Tulikivi Corporation, concerning a breach of the duty to
inform that had allegedly occurred in Taivassalo on 15-30 June 2011, pursuant
to the Act on Cooperation Within Undertakings. In its decision issued on 3
December 2014, the Court of Appeal dismissed the breach of the obligation to
cooperate. 

 On 11 October 2013, the District Court of Varsinais-Suomi ordered Heikki
Vauhkonen and Jouko Toivanen to pay a total of 15 ‘unit fines' each (Vauhkonen
EUR 1,470 and Toivanen EUR 1,125) due to a breach of the cooperation obligation
concerning the need for prior, appropriate provision of information to employee
representatives in connection with the business transfer of Tulikivi
Corporation's building stone business executed on 1 July 2011 in Taivassalo. 

Vauhkonen and Toivanen denied that they had committed a breach of the
obligation to cooperate, and considered that they had duly followed the
procedure required under the Act on Cooperation Within Undertakings. Both
Vauhkonen and Toivanen considered the District Court's decision erroneous and
appealed against the decision to the Court of Appeal. 

In its decision issued on 3 December 2014, the Court of Appeal dismissed the
breach of the obligation to cooperate concerning Toivanen and Vauhkonen. The
Court of Appeal interpreted section 41(2) of the Act on Cooperation Within
Undertakings the same way as the Helsinki Court of Appeal in its decision
212/31.1.2014 and considered that the obligation to provide information
described in section 41 of the Act does not exist before the final agreement on
a business transfer. In its decision the Court of Appeal states that in
Tulikivi Corporation's situation, the main terms and conditions had only been
agreed upon just before signing the agreement, and the employee representatives
had been given the information referred to in section 41(1) of the Act right
after the creation of the agreement. Tulikivi Corporation thus followed its
legal duty to inform the personnel in due time before the execution of the
business transfer. 

 TULIKIVI CORPORATION



 Distribution: NASDAQ OMX Helsinki

 Key media

 www.tulikivi.com



 Additional information: Tulikivi Corporation, FIN-83900 Juuka, www.tulikivi.com

 - Heikki Vauhkonen,  Managing Director,  tel.  +358 207 636 555