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LÄNNEN TEHTAAT PLC?S EXIT FROM MACHINIUM

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LÄNNEN TEHTAAT PLC  STOCK EXCHANGE RELEASE   May 18, 2004   4;05 pm


LÄNNEN TEHTAAT PLC’S EXIT FROM MACHINIUM BEGINS WITH GROUP
RESTRUCTURING

Lännen Tehtaat plc and Machinium Ltd have today agreed on the sale of
Suomen Rakennuskone Oy shares. As part of Lännen Tehtaat’s ownership
rearrangements with the Machinium Group, Lännen Tehtaat plc has
acquired the entire share capital of Suomen Rakennuskone Oy from
Machinium Ltd and is now looking for an outside buyer for the Suomen
Rakennuskone shares by offering them for public sale. The assets
obtained from the sale will be used to strengthen the capital
structure of the companies in Machinium Division and to reduce their
liabilities.

In connection with the restructuring process, Timo Huttunen is
resigning from his duties as Managing Director of Machinium Ltd and of
Lännen Engineering Oy. In his place, Kimmo Korhonen was appointed
Managing Director of Lännen Engineering Oy and acting Managing
Director of Machinium Ltd on May 18, 2004. Mr Korhonen has had a long
career with Metso Corporation, both in Finland and abroad. Kari
Kokkonen will continue as Managing Director of Suomen Rakennuskone Oy.

The Machinium Division consists of three business areas; manufacture
of backhoe loaders, sales and maintenance of earthmoving and utility
machinery, and supply of materials handling machines. Lännen
Engineering Oy manufactures backhoe loaders, Suomen Rakennuskone Group
is responsible for sales and maintenance of earthmoving and utility
machinery in Finland and the Baltic States, and SMA Construction AB in
Sweden. SMA Maskin AB and its subsidiaries supply materials handling
machines in Sweden.

Consolidated net turnover of Suomen Rakennuskone Oy, subsidiary of
Lännen Tehtaat plc, was EUR 44 million in 2003 and profit before
extraordinary items EUR 1.2 million. Suomen Rakennuskone Group
consists of Suomen Rakennuskone Oy in Finland, AS Balti Ehitusmasin-
Baltem in Estonia, SIA BCM Baltijas Celtniecibas Masina in Latvia and
UAB Baltijos Statybinès Masinos in Lithuania.

Suomen Rakennuskone Group will continue to distribute Lännen backhoe
loaders and Komatsu earthmoving machinery in Finland and the Baltic
States.

Lännen Tehtaat mainly operates in the food industry. The aim is to
withdraw from Machinium ownership during 2004. Lännen Tehtaat’s
consolidated net turnover for 2003 was EUR 492 million, and profit for
the financial year EUR 6.7 million. Lännen Tehtaat’s capital and
reserves on March 31, 2004 were EUR 95 million. The consolidated
financial statements include a restructuring provision of EUR 1.9
million for Machinium. Lännen Tehtaat’s liabilities and commitments
concerning the Machinium Division amounted to EUR 7.3 million on March
31,2004.


LÄNNEN TEHTAAT PLC

Erkki Lepistö
President & CEO


More details: Erkki Lepistö, tel. +358 2 8397 4001.

Distribution:
Helsinki Exchanges
Main media
www.lannen.fi

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