Neomarkka - Company Announcement

AVILON FIRST IN THE WORLD TO CONVERT PAPER PULP INTO DISSOLVING PULP

NEO INDUSTRIAL PLC    STOCK EXCHANGE RELEASE    19 May, 2011 at 10.15 am


AVILON FIRST IN THE WORLD TO CONVERT PAPER PULP INTO DISSOLVING PULP

Avilon Ltd, part of Neo Industrial's Viscose Fiber business, has made a
revolutionary innovation of converting paper grade pulp into dissolving pulp.
The technology was developed on Avilon's R&D and Technology laboratory, and it
has already been taken into production use on the company's Valkeakoski-based
factory. The method is not used anywhere else in the world. 

The technology enables high-quality products and excellent service
availability, while solving the company's main raw material, dissolving pulp
management in a competitive way, in both short and long term. 

- I am very proud of the innovativeness of Avilon's team. Avilon is not merely
a high-class viscose fiber producer, but also a globally significant bio
economy player and a technological forerunner of its industry, comments
Managing Director of Neo Industrial, Markku E. Rentto. 

Avilon has now secured its short and long term pulp management with its own
technology. Until now, Avilon's production has been dependent on market
dissolving pulp, availability of which has been very limited and price
exceptionally high. Avilon has recently entered long-term contracts regarding
paper grade pulp deliveries with selected suppliers. 

The patenting of this technology is underway. In the future, Avilon intends to
also commercialise the method by licensing it. 


Neo Industrial Plc

Markku E. Rentto
Managing Director



FURTHER INFORMATION:
Heikki Hassi, Managing Director, Avilon Ltd, tel. +358 50 321 8550



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).