Lännen Tehtaat - Company Announcement

LÄNNEN TEHTAAT: NORDIC SUGAR’S COMPENSATION CLAIM UNFOUNDED

LÄNNEN TEHTAAT PLC Stock Exchange Release 3 February 2012 at 15.15 (EET)

In its announcement issued on 3 February 2012, Nordic Sugar stated that it has
presented a compensation claim of EUR 4.5 million to Lännen Tehtaat for breach
of shareholder agreement. No compensation claim has been presented to Lännen
Tehtaat. 

Lännen Tehtaat has requested the Arbitration Institute of the Central Chamber
of Commerce of Finland to appoint a chairman to the arbitration court in a
dispute concerning Nordic Sugar's breaches of shareholder agreement. In Nordic
Sugar's response to Lännen Tehtaat's application, which was submitted to the
Central Chamber of Commerce's Arbitration Tribunal by Nordic Sugar, Nordic
Sugar expressed the view that Lännen Tehtaat committed a breach of shareholder
agreement in connection with the dismissal of Sucros Ltd's managing director,
and requests the arbitration court to confirm the breach of shareholder
agreement and order Lännen Tehtaat to pay a contractual penalty of EUR 4.5
million. 

“Lännen Tehtaat's view is that the shareholder agreement was complied with in
the dismissal of Sucros Ltd's managing director, and so the compensation claim
is unfounded. Under the shareholder agreement, both shareholders are entitled
to demand the managing director's dismissal if confidence in the managing
director has been lost and cannot be restored,” says Chief Executive Officer
Matti Karppinen. 

On 14 October 2011, Lännen Tehtaat published an announcement in which it
reported that a dispute concerning breaches of shareholder agreement is being
taken to arbitration court. According to Lännen Tehtaat, Nordic Sugar is guilty
of three different breaches, and on the basis of these Lännen Tehtaat is
demanding a contractual penalty totalling of EUR 27 million. The arbitration
will begin after appointment of a chairman. In addition, Lännen Tehtaat plc has
submitted to the Regional State Administrative Agency for Southern Finland an
application requesting a special audit of the accounts of Sucros Ltd in
connection with e.g. business transactions between Sucros and Nordic Sugar
Groups companies. 



LÄNNEN TEHTAAT PLC

Matti Karppinen
CEO



Further information:

Matti Karppinen, tel. +358 (0)10 402 00