Neomarkka - Company Announcement

AVILON RAMPS UP FIRE-RETARDANT FIBER PRODUCTION

NEO INDUSTRIAL PLC    STOCK EXCHANGE RELEASE    10 March, 2011    at 3.20 pm


AVILON RAMPS UP FIRE-RETARDANT FIBER PRODUCTION

Avilon Ltd, part of Neo Industrial's Viscose Fibers industry, has started its
fire-retardant fiber production in its Valkeakoski factory. Avilon manufactures
its speciality product alongside viscose fiber. Fire-retardant fiber is
produced by incorporating fire retardant silicate into viscose fiber, a
technology developed by the Valkeakoski factory. 

Fire-retardant fiber is needed, for example, in home and public space
furnishings, military combat uniforms and other protective clothing, as well as
vehicles. 

The main market for Avilon's fire-retardant fiber is the United States, where
fire safety regulations speed the demand. Avilon's first fire-retardant fiber
delivery is being made before the end of the week to the United States. 
- Our customer, Vita Nonwovens, is a manufacturer of non-woven textiles, notes
Chief Operating Officer of Avilon, Claus Carlsen. 

Avilon's high-end fire-retardant fiber also has potential in Europe, and
several negotiations are ongoing. This week, Avilon has produced test batches
for these potential European customers. 

According to Avilon's estimates, its fire-retardant fiber production volume
will be some 8,000 tonnes annually. 


Neo Industrial Plc

Markku E. Rentto
Managing Director



FURTHER INFORMATION:
Claus Carlsen, Chief Operating Officer, Avilon, tel. +358 40 7288 191

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.