PROGRESS WITH EFFICIENCY AND MODERNISATION PROJECT AT HK RUOKATALO?S PRODUCTION FACILITIES AT FORSSA

HK Ruokatalo Group Oyj    RELEASE  5 May 2006, at 10am

PROGRESS WITH EFFICIENCY AND MODERNISATION PROJECT AT HK RUOKATALO’S
PRODUCTION FACILITIES AT FORSSA

In January 2006, HK Ruokatalo announced an extensive two-year
programme to overhaul its production structure. The programme includes
major investments to develop the company’s production facilities at
Forssa.

The roughly EUR 30-million slaughtering line modernisation project
that started in autumn 2004 entered productive service in late 2005.
The next stage is the modernisation of cutting operations. An almost
EUR 8-million project will increase the degree of automation of the
cutting plant and reduce laborious, repetitive work stages. As
deployment of the new line approaches, week 19 will see the start of
employer-employee negotiations in respect of cutting operations.
Increased automation is expected to lead to the unfortunate loss of
around 60 jobs out of the current figure of 320 in cutting operations.

The project will deliver more efficient production and provide the
capacity to deal with even larger volumes of meat. Work is still under
way on reception facilities for slaughter animals and the quick
carcass refrigeration plant, both of which are scheduled for
completion in late autumn 2006. This work is part of the project to
modernise the slaughtering line.

The Forssa production facilities currently have a permanent staff of
almost 600 persons. HK Ruokatalo slaughters and cuts pork at Forssa.
The company also has a pork slaughterhouse in Mellilä, a beef
slaughterhouse in Outokumpu and poultry slaughterhouses in Eura and
Säkylä. HK Ruokatalo processed around 145 million kg of Finnish meat
in 2005.

Further information is available from:
Executive vice president, meat business, Esa Mäki, HK Ruokatalo, tel:
+358 (0)10 570 6434


HK Ruokatalo Group Oyj



Kai Seikku
CEO


DISTRIBUTION:
Helsinki Exchanges
www.hk-ruokatalo.fi