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HK RUOKATALO MAKES FURTHER PROGRESS WITH RESTRUCTURING

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HK Ruokatalo Oyj        RELEASE    19 October 2004, at 2pm


HK RUOKATALO MAKES FURTHER PROGRESS WITH RESTRUCTURING

On 16 September 2004, HK Ruokatalo announced a plan to streamline the
legal structure of its Finnish operations. Domestic industrial
operations, sales, marketing and logistics are to be merged into one
company. There are currently five companies in the Group responsible
for these operations.

Meeting on 16 September 2004, the Boards of Directors of HK Ruokatalo
Oyj and its subsidiaries Broilertalo Oy, Food Kuljetus Oy, Koiviston
Teurastamo Oy and Pouttu Foods Oy approved a merger plan whereby the
subsidiaries mentioned would merge with and into HK Ruokatalo Oyj. In
compliance with the Finnish Companies Act, HK Ruokatalo Oyj will
notify the company’s shareholders of the merger plan once the plan has
been entered in the trade register.


The merger plan content is given below:

1. Changes to be made to the acquiring company’s trade register entry:
In connection with the merger, Broilertalo, Kariniemi, Food Kuljetus,
Koiviston Teurastamo and Pouttu Foods will be adopted as HK Ruokatalo
Oyj’s auxiliary company names.

2. Inter-company shareholdings: The acquiring company will own the
entire share capital of the merging companies. The merging companies
will not own shares in the parent company.

3. Capital loans: None of the companies involved in the merger has
capital loans.

4. Special benefits and rights: No member of the Board of Directors,
the CEO, managing director or auditors of any of the companies
involved in the merger or any authorised public accountant acting as
an independent expert has received any special benefits or rights.

5. Reasons for mergers: The reason for the envisaged mergers is to
simplify HK Ruokatalo Oyj’s corporate structure.

6. Registration date of planned merger executions: It is planned to
register the merger executions by 31 March 2005.

HK Ruokatalo’s procurement company LSO Foods Oy, which is responsible
for the procurement of beef and pork and for providing consultation to
support primary production, remains outside the Group’s legal
restructuring process. Restructuring will have no impact on employees.
The employees of the companies affected by the arrangements will be
transferred without loss of holiday and similar entitlements.

Restructuring will not affect the position of shareholders in the
parent company, which is quoted on the Main List of the Helsinki
Exchanges.


HK Ruokatalo Oyj



Simo Palokangas
CEO



DISTRIBUTION:
Helsinki Exchanges
Internet: www.hk-ruokatalo.fi

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