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HK RUOKATALO AND SAARIOINEN SIGN AN AGREEMENT ON CHICKEN RAW MATERIAL SOURCING

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HKScan Oyj          STOCK EXCHANGE BULLETIN, 6 June 2008 at 11.00am


HK RUOKATALO AND SAARIOINEN SIGN AN AGREEMENT ON CHICKEN RAW MATERIAL SOURCING

On 27 February 2008, HK Ruokatalo and Ruoka-Saarioinen Oy announced a
preliminary agreement under which HK Ruokatalo would source the raw materials
for bone-in chicken leg and split breast products as well as whole broilers
from Ruoka-Saarioinen while Ruoka-Saarioinen would acquire its boned chicken
raw material from HK Ruokatalo. 

The execution of the final contract was conditional on confirmation on issues
pertaining to i.a. competition legislation. Following assessments of
competition impacts, the Finnish Competition Authority stated that there was no
need for further assessments. This enabled the parties to sign their final
agreement on chicken raw material sourcing today. Sourcing under the agreement
is anticipated to begin by the end of October in autumn 2008. 

As well as securing access to Finnish chicken raw material, it is hoped the
arrangement will help achieve functional advantages such as increased
production capacity utilisation rates. The arrangement will result in HK
Ruokatalo's Eura production facilities focusing on boned chicken products and
the processing of boned chicken raw material. 

The contractual arrangements will have no impact on the competitive
relationship between the two companies or their product offerings. HK Ruokatalo
intends to continue the comprehensive processing and sales of all chicken
products. 

In 2007, HK Ruokatalo's plant in Eura processed 42.5 million kg of chicken
while the annual processing volume at Ruoka-Saarioinen's Sahalahti plant was
10.8 million kg. 


HKScan Corporation


Kai Seikku
CEO


Further information:
Managing director Jari Leija, HK Ruokatalo Oy. Please leave any messages for
him to call with Marjukka Hujanen, tel: +358 (0)10 570 6218. 


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