Neomarkka - Company Announcement

AVILON'S TECHNOLOGY BUSINESS TAKES OFF

NEO INDUSTRIAL PLC        STOCK EXCHANGE RELEASE     2 August, 2011 at 9.40 am

AVILON'S TECHNOLOGY BUSINESS TAKES OFF

Avilon Ltd, part of Neo Industrial's Viscose Fibers business, has started its
technology business. According to its strategy, the company has a portfolio of
research and development projects including raw material and process optimizing
related production technology as well as novel fiber products. 

Avilon has now brought to the market licenses to a cost competitive technology
allowing the use of paper grade pulps for the manufacture of viscose fibre and
cellulosic films. Until now, only considerably costlier dissolving grade
specialty pulp has been used as the raw material for these products. The
technology has already been taken into use at Avilon's factory. 

Since the public announcement of this innovation last May, there has been very
strong interest in it among viscose and pulp manufacturers. Avilon is currently
negotiating license sales, in which it has named advisor Rainer Häggblom and
his team, utilizing Mr Häggblom's long experience in strategies and projects of
international forest industry. 

The new technology has patents pending. Avilon will also retain the right of
using the technology in its own fiber manufacture. 

Avilon's research and development operations continue active. Announced last
January, the eco-friendly carbamate technology that enables carbon disulphide
free viscose fiber production is intended to be commercialized in 2013. 
- Both the carbamate technology and the paper grade pulp converting method now
being licensed enable notable production cost savings for their users, which
translates into profitable business for the technology seller. This is a
significant, very interesting part of Avilon's strategy, reminds Neo
Industrial's Managing Director, Markku E Rentto. 

Neo Industrial will define the technology business' effect on its earnings when
Avilon enters its first license agreement. 



Neo Industrial Plc

Markku E. Rentto
Managing Director


FURTHER INFORMATION:
Markku E. Rentto, Managing Director, Neo Industrial, tel. +358 207 209 191
Rainer Häggblom, Vision Hunters, tel. +358 40 555 9567

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. 

Neo Industrial's business segments are Cable (Reka Cables, Expokabel, Nestor
Cables), Viscose Fibers (Avilon) and Single Family Housing (Finndomo).