KESKO FOOD TO SELL ITS COFFEE ROASTERY TO GUSTAV PAULIG LTD

Kesko Food has made an agreement to sell the business operations and property of its subsidiary, Viking Coffee Ltd, to Gustav Paulig Ltd. The deal does not include Kesko Food's own product brands, the most important of which is Costa Rica.

Viking Coffee Ltd is a coffee roastery, the net sales of which amounted to 18.5 million euros in 2002. The 35 persons employed by the company will be transferred under their previous conditions to Gustav Paulig Ltd.

The coffee roastery is the last of Kesko's actual production plants, which have all been disposed of earlier. Costa Rica and Pirkka will remain Kesko Food's own coffee brands. This deal is in line with Kesko Food's policy to concentrate on their core business operations.

Kesko Food develops food trade operating systems and operates as a wholesaler and retailer in Finland and the Baltic countries. Kesko Food's key business operations consist in the chain operations of the K-food stores in Finland, Kespro Ltd's trade to large-scale customers, and in grocery retailing in the Baltic countries.

Gustav Paulig Ltd is part of the Paulig Group, and is the leading coffee company in Finland with operations in the Nordic, Baltic, Russian and its neighbouring markets.

Further information:
Kalervo Haapaniemi, President, Kesko Food Ltd, tel. +358 1053 22204
Harri Sivula, Executive Vice President, Kesko Food Ltd, tel. +358 1053 22213
Pekka Pirinen, Managing Director, Gustav Paulig Ltd, tel. +358 400 215 433