Neomarkka - Company Announcement

NEOMARKKA SIGNED LETTER OF INTENT REGARDING THE PURCHASE OF SPECIALTY CELLULOSE FIBRE BUSINESS PRODUCTION FACILITIES

NEOMARKKA PLC	STOCK EXCHANGE RELEASE	6 July 2010	at 9.30 am                     

NEOMARKKA SIGNED LETTER OF INTENT REGARDING THE PURCHASE OF SPECIALTY CELLULOSE 
FIBRE BUSINESS PRODUCTION FACILITIES                                            

Neomarkka Plc and Kuitu Finland Ltd´s estate of bankruptcy and Pension Fund of  
Säteri Ltd have signed letter of intent (LOI) regarding the purchase of former  
production facilities of Kuitu Finland Ltd.                                     

The LOI is one step ahead in negotiations regarding possibility to invest in    
specialty cellulose fibre business.                                             

Kuitu Finland Ltd was driven into bankruptcy in 2008.                           

The negotiating parties aim to restart the production and exploit the already   
well known product, know-how of the personnel and existing customer base in     
textile and non-woven cellulosic fiber for European and United States markets.  

The restarted production would focus on fire-retardant fiber technology.        
Fire-retardant fiber is needed in materials used in textiles for interior       
decorations, vehicles and protective clothing. Market research indicates that   
demand in fire-retardant fiber is rising especially in United States.           

This business would bring about 200 new jobs in Valkeakoski. The estimated      
annual production capacity of the factory is 65,000 tonnes.                     

Neomarkka will give a press release when negotiations are finalised and         
decisions are made.                                                             

Neomarkka Plc                                                                   



Markku E. Rentto                                                                
Managing Director                                                               


FURTHER INFORMATION:                                                            
Sari Tulander, CFO, tel. +358 20 720 9192                                       




www.neomarkka.fi                                                                

Neomarkka Plc's strategy is to invest mainly in industrial companies with       
similar synergic benefits. The aim of investments is with active ownership to   
develop the purchased companies and establish additional value. Returns are     
sought both through dividend flow and an increase in value. Neomarkka's B shares
are listed on the NASDAQ OMX Helsinki main market.