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SUOMEN REHU PLANS TO IMPROVE OPERATING EFFICIENCY BY CLOSING ITS VAASA FACTORY

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LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE January 24, 2005 9.00 am


SUOMEN REHU PLANS TO IMPROVE OPERATING EFFICIENCY BY CLOSING ITS VAASA FACTORY

All elements of the Finnish food business have been under considerable pressure
in recent years to become more cost effective. The Lännen Tehtaat Group's animal
feeds business has responded to these demands by cutting costs, improving the
efficiency of its processes and optimizing the division of activities between its
factories. It is nevertheless becoming clear that these measures will be
insufficient in the future.

Structural changes are needed in order to achieve improvements in cost
effectiveness and to safeguard competitiveness. As a result, Suomen Rehu is to
begin statutory codetermination talks between staff and management on the closure
of the company's animal feeds factory at Vaasa and the transfer of its production
to other factories within the Suomen Rehu Group. The talks concern the jobs of 34
employees.

By closing the factory, the company aims to achieve an annual saving of about EUR
3 million. The savings are expected to be made gradually from 2006 onwards. The
closure of the factory would have a negative effect on the Lännen Tehtaat Group's
net profit for 2005. The value of the Vaasa factory's fixed assets entered in the
consolidated balance sheet on December 31, 2004 was approximately EUR 4 million.

LÄNNEN TEHTAAT PLC

Erkki Lepistö
CEO

More information: Erkki Lepistö, tel. +358 10 402 4002

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

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