Kesko Oyj - Company Announcement

Kesko Group revises its financial objectives and considers disposal of Kauko-Telko

KESKO CORPORATION STOCK EXCHANGE RELEASE 23.05.2007

Kesko Group revises its financial objectives and considers
disposal of Kauko-Telko

Kesko Corporation's Board of Directors in its meeting today
specified the company strategy. Based on the expansion of the
Group's international operations and the current business outlook,
the targets for return on capital were raised. Large-scale store
site investments in Finland and the other operating countries are
expected to be made during the next few years. The Board also
decided to look into possibilities to dispose of Kauko-Telko.

Kesko measures its medium-term performance and balance sheet
structure with several financial indicators. The aim is to
increase the contribution of international operations to net
sales. The new target value for return on equity is 14%
(previously 12%) and that of invested capital is 16% (previously
12%).

The Group's revised financial objectives are:

Net sales growth                 Growth in Finland exceeding that
                                 of the market. Increasing
                                 contribution of international
                                 operations.
Return on equity                 14%
Return on invested capital       16%
Interest-bearing net debt/EBITDA < 3
Equity ratio                     40 - 45%
Economic value added             Growing positive EVA as internal
                                 indicator.

Kesko pursues its strategy of healthy, focused growth with sales
and services to consumer-customers in a central role. Kauko-Telko
engages in international technical trade with the manufacturing
industry and public and private utilities as its key customer
groups. Kauko-Telko's synergies with Kesko's other business
operations are few. In today's meeting, the Kesko Board of
Directors decided to look into possibilities to sell Kauko-Telko.
In 2006, Kauko-Telko's net sales were €248 million, and the
operating profit excluding non-recurring items was €6.2 million.
The average number of employees was 538 in 2006.

Ensuring growth in Finland and the other operating countries will
necessitate major investments in store sites. In the next couple
of years, the annual store site investments will amount to about
€250 million.

Further information is available from Arja Talma, Senior Vice
President, CFO, telephone +358 1053 22113.


Kesko Corporation


Paavo Moilanen
Senior Vice President, Corporate Communications


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