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HK RUOKATALO TO RATIONALISE RAW MATERIAL SUPPLIES IN FINLAND

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HK Ruokatalo Group Oyj  STOCK EXCHANGE BULLETIN 12 Sept. 2006, 00:40pm


HK RUOKATALO TO RATIONALISE RAW MATERIAL SUPPLIES IN FINLAND

HK Ruokatalo’s procurement company LSO Foods Oy and Järvi-Suomen
Portti cooperative have today signed a subcontracting agreement
concerning supplying of pork and beef. In practice Portti has decided
to outsource animal procurement and associated services to LSO Foods.

The arrangement seeks greatly improved procurement efficiency through
larger volume than at present and by removing overlaps in the supply
organisations.

For LSO Foods, the subcontracting agreement will translate into a
marked increase in supply volumes to around 92 million kg for pork and
26 million kg for beef. Lower per unit costs will deliver a marked
improvement in supply cost effectiveness. This is in line with HK
Ruokatalo’s efficiency programme currently underway in Finland.

In order to start the subcontracting a permission from the Finnish
Competition Authority is required. A resolution is expected during the
first half of October.

The subcontracting agreement applies solely to the procurement of pork
and beef. It does not affect the mutual competition between HK
Ruokatalo and Järvi-Suomen Portti in product manufacture and
marketing.

In 2005, LSO Foods supplied 80.6 million kg of pork and 18.2 million
kg of beef. The corresponding figures for Järvi-Suomen Portti were
11.7 million kg and 7.7 million kg respectively.

Further information is available from:
- CEO Kai Seikku and CFO Matti Perkonoja at HK Ruokatalo Group Oyj.
Please leave any messages for them to call with Katja Backman on +358
10 570 2428
- managing director Tero Hemmilä, LSO Foods Oy, tel: +358 10 570 4300
and +358 400 522 012


HK Ruokatalo Group Oyj


Kai Seikku
CEO


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

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