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LÄNNEN TEHTAAT CUTS FIXED COSTS AND BEGINS EMPLOYEE CO-DETERMINATION TALKS TO

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Lännen Tehtaat plc     Stock Exchange Release    February 7, 2006 at 2;00 p.m.


LÄNNEN TEHTAAT CUTS FIXED COSTS AND BEGINS EMPLOYEE CO-DETERMINATION TALKS TO
REDUCE PERSONNEL

The cost competitiveness of the Lännen Tehtaat Group units is unsatisfactory as a
result of increasingly stiff competition. In order to improve cost efficiency the
Group will be making changes to cut fixed costs permanently.

The aim is to cut fixed costs by some EUR 5 million at annual level. This year's
savings target is EUR 2.5-3.0 million. Achieving the target will call for savings
in both personnel and other costs. Lännen Tehtaat will start co-determination
talks with the personnel at Apetit and Suomen Rehu in order to reduce the number
of personnel by a total of some 30 people in various locations. As a result of
this plan, the company will record non-recurrent expenses of EUR 0.8-1.0 million
in the financial performance for the first quarter in 2006.

Apart from the cost cuts scheduled for immediate implementation, Lännen Tehtaat
will start looking into the possibility of transferring its production at the
Turku factory, which is part of the Apetit Frozen Foods and Jams unit, and the
related jobs to Apetit's factory in Säkylä. Production at the factory in Turku
currently employs some 55 people, 40 of whom may be offered work at the Säkylä
factory. The transfer of the production to Säkylä would take place during 2007 at
the earliest.

LÄNNEN TEHTAAT PLC

Matti Karppinen
CEO

More information: Matti Karppinen, CEO, tel. +358 10 402 00

Distribution:
Helsinki Stock Exchange
Principal media
www.lannen.fi

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