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  • EARNINGS DEVELOPMENT IN HKSCAN GROUP'S FINNISH BUSINESS MORE MODEST THAN ANTICIPATED IN EARLY PART OF YEAR - LAUNCH OF BUSINESS CHAIN DEVELOPMENT PROJECTS THUS BROUGHT FORWARD
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EARNINGS DEVELOPMENT IN HKSCAN GROUP'S FINNISH BUSINESS MORE MODEST THAN ANTICIPATED IN EARLY PART OF YEAR - LAUNCH OF BUSINESS CHAIN DEVELOPMENT PROJECTS THUS BROUGHT FORWARD

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HKScan Corporation       STOCK EXCHANGE RELEASE   9 April 2010, at 4:15pm

EARNINGS DEVELOPMENT IN HKSCAN GROUP'S FINNISH BUSINESS MORE MODEST THAN
ANTICIPATED IN EARLY PART OF YEAR - LAUNCH OF BUSINESS CHAIN DEVELOPMENT
PROJECTS THUS BROUGHT FORWARD 

According to preliminary estimates, HKScan Corporation's Finnish business
operations will fall clearly short of the earnings performance seen in Q1 of
last year. The market has proven even more challenging than anticipated. The
greatest movements in the market have been seen in poultry meat, the underlying
reason being stepped-up price competition in anticipation of the revised EU
Poultry Directive which is to take effect in May. The demand for pork and beef
as well has been flatter than expected. 

According to CEO Matti Perkonoja, the planned development measures in HK
Ruokatalo's business chain must be brought forward markedly if long-term
profitability targets are to be met. These plans extend throughout the business
chain, the aim being to strengthen the company's position in its home market.
The development programmes are envisioned to deliver annual earnings
improvements of EUR 12 million. Programme-related investments are included in
the ordinary annual investment programmes of the business. The programmes are
estimated to give rise to some additional expenditure in the years 2010-2011. 

Preliminary plans have HK Ruokatalo centralizing its production activities and
markedly scaling back production outsourced to subcontractors. The plans are
intended to concern all of HK Ruokatalo's production plants as well as all its
employees and subcontractors in Finland. Implementation of the programmes is
tentatively estimated to translate into a reduction of roughly 200 person-years
in HK Ruokatalo's business chain. The appropriate negotiations will be started
with HK Ruokatalo employees once the specifics of the plans have been worked
out. 

HKScan Corporation will release its Q1 interim report on 4 May 2010 at
approximately 8:00 am. 


HKScan Corporation


Matti Perkonoja
CEO



Further information is available from HKScan Corporation CEO Matti Perkonoja.
Please leave any message for him to call with communications manager Marja
Siltala, tel. +358 (0)10 570 2290. 



HKScan is one of the leading food companies in northern Europe with home
markets in Finland, Sweden, the Baltics and Poland. HKScan manufactures, sells
and markets pork and beef, poultry products, processed meats and convenience
foods under several well-known local brand names. Its customers are retail, the
HoReCa sector, industry and export customers. HKScan is active in nine
countries and has some 10,000 employees. It had net sales of 2.1 billion euro
in 2009. 


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