Neomarkka - Company Announcement

NEO INDUSTRIAL MAKES AN ADDITIONAL INVESTMENT IN FINNDOMO

NEO INDUSTRIAL PLC    STOCK EXCHANGE RELEASE    17 February, 2011 at 3.10 pm



NEO INDUSTRIAL MAKES AN ADDITIONAL INVESTMENT IN FINNDOMO

Neo Industrial has decided to strengthen the financial position of its Single
Family Housing industry company, Finndomo. Neo Industrial will make an
additional investment in Finndomo, together with the prefabricated house
manufacturer's other major owner, Ilkka Brotherus, pro rata i.e. in
proportionate allocation. Neo Industrial's share of the additional investment
is 2.8 million euros. 

In the same context, Finndomo has agreed with its financers of financing
reorganization, which together with Neo Industrial's and Ilkka Brotherus's
additional investments significantly strengthens the company's balance sheet
and supports its long-term strategy. 

The effects of the restructuring measures carried out in Finndomo will be
visible with some delay, and at the same time the faster than expected revival
of the markets and demand require investments. This is why the entire company
continued to operate at a loss in 2010, although its result was clearly better
than in the previous year. Neo Industrial's share of the loss was -1.3 million
euros in May-December 2010. 

Finndomo's profitability is, however, improving. In H2 of 2010, the
restructuring began to show results, and the company's Finnish operations'
EBITDA turned positive. 
- We continue to be convinced of Finndomo's excellent operating conditions;
quality, good brand and efficient production. Furthermore, last year's positive
tempo in the prefabricated house market seems to continue, comments Neo
Industrial's Managing Director Markku E. Rentto. 

Finndomo carries on with its profitability improving measures in Finland and
particularly in Sweden, where the restructuring will be intensified in the near
future. 

Neo Industrial invested in a 30 percent share of Finndomo in April 2010.


Neo Industrial Plc

Markku E. Rentto
Managing Director



FURTHER INFORMATION:
Markku E. Rentto, Managing Director, Neo Industrial, tel. +358 207 209 191



www.neoindustrial.fi

Neo Industrial 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 through both dividend flow and an increase in value. Neo Industrial's B
shares are listed on the NASDAQ OMX Helsinki Stock Exchange.