KESKO FOOD TO SELL THE CARROLS HAMBURGER CHAIN TO HESBURGER

Carrols Oy, a Kesko Food subsidiary, has made an agreement to sell the business operations of the Carrols hamburger chain to a subsidiary owned by the Burger-In Group. The deal will come into force on 1 March 2002 upon the fulfilment of the conditions specified in the agreement. The deal includes the transfer of the Carrols brands and the restaurant operations of the Carrols chain.

In Finland, the Carrols chain includes 71 restaurants, with their annual net sales being approx. EUR 50 million and average number of personnel 1,500. Carrols Oy’s personnel will be transferred to the new company as established employees.

The business operations of the Carrols chain were transferred to Kesko Corporation from Sentra in 1997. During the years 1997-2001 the Carrols chain expanded and became a nationwide hamburger chain: the number of restaurants increased from 27 to 71 and the sales were doubled. The Carrols chain’s market position is strong in the metropolitan area in particular.

Kesko Food concentrates on the wholesale and retail trade of food and other groceries, as well as on the development of business operating systems in Finland and the neighbouring areas. In Finland, its subsidiary Kespro Ltd offers delivery and cash-and-carry services to its customers, which include restaurants and other catering customers, service stations, kiosks, bakeries and industry. In the Baltic countries, Kesko Food aims at growing and gaining a share of about 25% of their grocery market.

Further information:
President Kalervo Haapaniemi, Kesko Food Ltd, tel. +358 1053 22204
Managing Director Kari Kivikoski, Carrols Oy, tel. +358 105324400 or +358 500 434912

Kesko Corporation
Corporate Communications

Erkki Heikkinen
Senior Vice President

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