HK RUOKATALO TO STREAMLINE ITS LEGAL STR

HK Ruokatalo Oyj  STOCK EXCHANGE BULLETIN 16 September 2004,at14.15pm.

HK RUOKATALO TO STREAMLINE ITS LEGAL STRUCTURE IN FINLAND


HK Ruokatalo Group is to restructure. The Group’s domestic industrial
operations, sales, marketing and logistics are to merged into one
company. There are currently five companies in the Group responsible
for these operations.

Various corporate acquisitions effected over the past few years have
left HK Ruokatalo with a rather disjointed group structure. With
business operations increasingly being integrated around our core
process, we have decided to take steps to streamline our corporate
structures. Making one company responsible for our industrial
operations at home will enhance the business itself, harmonise working
practices and the corporate culture and cut operating costs.

It is envisaged restructuring in Finland will take place in two
stages. In the first stage, the plan is to merge HK Ruokatalo Oyj’s
fully-owned subsidiaries Broilertalo Oy, Food Kuljetus Oy, Koiviston
Teurastamo Oy and Pouttu Foods Oy into HK Ruokatalo Oyj. In the second
stage, domestic industrial operations, including employees, will be
divested into a separate subsidiary. The parent company will remain
responsible for Group management and administration. 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 restructuring project.

The intention is to launch the project this autumn. It is expected the
project will take half a year to effect, including consideration by
the authorities. Restructuring will have no impact on employees. The
employees of the companies affected by restructuring will be
transferred without loss of holiday and similar entitlements.

HK Ruokatalo aims to have just one company responsible for industrial
operations in each of its principal market areas. In the near future,
the Group’s business in the Baltic market area will be reorganised to
cover the entire Baltic Region instead of each country as at present.
Sokolów S.A., listed company owned jointly by HK Ruokatalo and Danish
Crown will be responsible for industrial operations in the Polish and
Central European market.

Restructuring will have no impact on the position of shareholders in
the parent company, HK Ruokatalo Oyj, which is quoted on the Main List
of the Helsinki Exchanges.

HK Ruokatalo’s core processes will form an extensive unbroken
production chain from the farm to the customer in each of the Group’s
respective markets. This chain includes rearing animals for slaughter,
raw meat procurement, slaughtering, cutting, product manufacture,
logistics and commercial functions.

The Group employs 2,700 persons in Finland and around 2,000 in the
Baltics.


HK Ruokatalo Oyj


Simo Palokangas
CEO


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