Neomarkka - Company Announcement

NEO INDUSTRIAL PLC´S DAUGHTER COMPANY AVILON POSTPONES THE PRODUCTION STARTUP

NEO INDUSTRIAL PLC	STOCK EXCHANGE RELEASE	18 November 2010	at 20.00             


NEO INDUSTRIAL PLC´S DAUGHTER COMPANY AVILON POSTPONES THE PRODUCTION STARTUP   


Neo Industrial´s Interim Report was published 4 November, 2010. In the Interim  
report Neo Industrial wrote in near term outlook that the production of         
Valkeakoski special fibre plant will start its activities during this year and  
that the first deliveries of fire retardant fibre are planned to deliver in     
December.                                                                       

Poor harvest of cotton and specially the market growth of China but also        
increase in common market demand of viscose fiber bring good possibilities to   
the success of the products that Valkeakoski special fibre plant will produce.  
However, at the same time the explosive growth within very short time in the    
demand of the main raw material of Valkeakoski, dissolving pulp, has brought    
challenges to the timetable of the production startup; At least the raw         
materials for three production months are needed to be secured before the       
production startup is reasonable. When the usage of raw materials for three     
months is secured the constant continuation of 24/7 process can be ensured.     

All needed raw materials for three months constant production has not been      
confirmed yet and therefore production startup will probably not happen during 
December. This means that probably the first customer deliveries will be made in
2011.                                                                           

The preparations relating starting the production machinery will be continued.  
Thus the production can be launched immediately when the needed raw material    
quantities has been secured.                                                    

Neo Industrial Plc                                                              




Markku E. Rentto                                                                
Managing Director                                                               


FURTHER INFORMATION:                                                            
Markku E. Rentto, Managing Director, tel. +358 207 209 191                      
Claus Carlsen, Director, tel. +358 40 728 8191                                  


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