Honkarakenne Oyj - Company Announcement

HONKARAKENNE WILL START PURCHASING RAW MATERIAL FROM RUSSIA

HONKARAKENNE OYJ	Stock exchange release 9 June 2008 at 1:00 PM                  

HONKARAKENNE WILL START PURCHASING RAW MATERIAL FROM RUSSIA                     

Honkarakenne Oyj has bought a 37.5% stake in Karjalan Lisenssisaha Invest Oy    
from Timber Component Oy and Ahti Paananen. Part of the purchase price is paid  
with Honkarakenne's own B shares. The deal helps Honkarakenne assure            
availability of competitive and good-quality raw material for its own factories.
The expansion of ownership in a sawmill company also secures the company's      
growth and development.                                                         

Three Karlis companies, owned by Karjalan Lisenssisaha Invest Oy and operating  
in Russia, were established in 1993, and have been Finnish-owned since 2006.    
Since then the companies' logging rights have been expanded, the sawmill's      
capacity has been improved, and its plant and equipment has modernized. This    
year's turnover will be 8 million euro, and the companies employ 45 people in   
the Republic of Karelia.                                                        

Pine and spruce growing in Russian Karelia are of good quality and suitable for 
construction. The production plant of Karlis companies is situated close to the 
border, in Wärtsilä on the Russian side of the border. Its logging rights are   
approximately 60,000 cubic meter a year. In addition, it purchases saw-timber   
trees from Finnish forest companies and local companies. The plant's sawing     
capacity in one shift is 50,000 cubic meter a year.                             

The raw material will be upgraded in Honkarakenne's Finnish log house factories.


Further information: Esko Teerikorpi, President and CEO, tel. +358 40 580 6111. 


HONKARAKENNE OYJ                                                                

Board of Directors                                                              


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