Tiimari Oyj Abp - Company Announcement

TIIMARI STRENGTHENS ITS CAPITAL FUNDING AND BOARD OR DIRECTORS IN ORDER TO ENABLE QUICK IMPLEMENTATION OF THE RENEWED STRATEGY

Tiimari Plc               STOCK EXCHANGE RELEASE  22 September 2009 at 10.00    

TIIMARI STRENGTHENS ITS CAPITAL FUNDING AND BOARD OF DIRECTORS IN ORDER TO      
ENABLE QUICK IMPLEMENTATION OF THE RENEWED STRATEGY                             


The Board of Directors at Tiimari Oyj Abp has decided to accelerate the         
development of the Tiimari and Gallerix business operations by investing more   
than previously planned in activities that enable an increase in customer flows 
and sales growth. The company has in its strategy defined arts & crafts and     
party organising as focus points. The company has decided to accelerate the     
launch of new product categories and branded products to support the focus      
points and expand the amount of shops, in which the products are to be          
introduced. New product categories, such as CDs, pocket books, children's toys  
and leading Finnish brands have already been tested in shops during the autumn  
with great success. Simultaneously, the company increases its efforts in        
logistics and operations management as well as in the development of in-shop    
information technology systems in order to increase operational efficiency and  
profitability. The aims of these actions are to increase the operational cash   
flow and balance out its fluctuation during the calendar year.                  

Due to initiated and planned actions the company's seasonal working capital     
needs during the latter part of the year will be higher than expected,          
especially because of new product launches and preparations for the Christmas   
sales period. The need for external funding has also increased through the      
discounted sales period in the summer, which has resulted in a third quarter    
gross margin development that is weaker than expected. In addition to covering  
the seasonal funding need the Board has established a need to improve the       
financial position of the company and increase the flexibility of long-term     
funding.                                                                        

CEO Hannu Krook                                                                 
“In our second quarterly report we announced that this year we are going to     
focus on developing our competitive edge in our retail concepts by improving our
activities within the profit improvement programme and introducing new product  
categories and branded products. In the prevailing economic climate the         
execution of these activities still needs to be improved in order to reach our  
full year targets. In terms of the operative efficiency of the profit           
improvement programme, cost and inventory reductions and investment management, 
the aforementioned actions have proceeded according to plan. Although the gross 
margin percentage has improved its effect on profit has not reached the target  
as the sales volume is lagging behind expectations. The intention of the sales  
improving activities is to grow the sales towards year-end and accelerating     
these is therefore of special importance. The additional funding enables a      
broader and faster introduction of the new product categories in our shop       
network and stabilises the long-term funding significantly.”                    

Due to the aforementioned and the general economic downturn, the Board of       
Tiimari Oyj Abp has decided to call for an additional general meeting in order  
to decide on releasing a 4.98 million euro (maximum) convertible capital loan,  
which will mainly be offered for subscription to professional and institutional 
investors, empowering the Board to decide on the share issue and any special 
rights related to the offering as well as decide on the change in board size and
composition. The terms of the loan and invitation to the general meeting will be
published in full in a separate release.                                        

The company has received separate commitments from its biggest owner Atine Group
Oy's parent company Virala Oy Ab, Assetman Oy and Baltiska Handels A.B, in which
the aforementioned parties have according to proposed loan terms and under the  
assumption that the general meeting will release a convertible capital loan to  
subscribe a total of 3.540.000 euro of the loan amount. The prepayments from the
parties who have given the subscription commitment will be netted off against   
the subscription costs of the convertible capital loan. In connection with the  
corporate finance preparations, the company has also agreed with its financing  
bank new absolute profitability related loan terms concerning the Tiimari and   
Gallerix business operations to stabilise the financial position of the group.  

In the additional general meeting a proposition will also be made to increase   
the board size by one member and that the member to be chosen to the Board would
be Mr. Markku Pelkonen (b. 1962). Mr. Pelkonen has worked as Senior Vice        
President , kiosk operations for Rautakirja Oy from 2001 to June 2009 and in    
other sales and marketing positions from 1992 onwards. The Board has also agreed
that after the general meeting the Board will choose the current vice-chairman  
Mr. Hannu Ryöppönen as chairman of the board and the current chairman Mr. Peter 
Seligson as vice-chairman.                                                      

The essential terms of the convertible capital loan agreement to be proposed to 
the Annual General Meeting:                                                     
Loan amount  4.980.000 euro                                                     
Emission rate 100%                                                              
Subscription period 20th - 21st October 2010                                    
Interest rate 8.0% p.a.                                                         
Due date for loan 29th March 2013                                               
Conversion period for shares 30th October 2009 - 15th March 2013                
Conversion rate shall be the weighted average price of the share in trading     
Nasdaq OMX Helsinki Plc during 22 nd September - 7 th October 2009 increased by 
5 percent but at least 1.30 euro and at maximum 1.50 euro/ share.               


Tiimari Plc                                                                     
Hannu Krook                                                                     
CEO                                                                             

Further information: CEO Hannu Krook                                            
tel. + 358 (0)3 812911, e-mail hannu.krook@tiimari.fi                           

Distribution: NASDAQ OMX Helsinki                                               
important news media                                                            
www.tiimari.com                                                                 

Tiimari Plc is a listed company. The group consists of two retail shop concepts:
Tiimari and Gallerix. These two concepts do business in seven countries within  
the Baltic Sea region and there are altogether nearly 300 shops. All three      
concepts belong to the forerunners of their market segment. In the corporation  
there is also a company called Tiimore Oy which specialises in corporate gifts  
and sales promotion solutions.