Latvia's fourth K-rauta opened in Jelgava

Rautakesko continues strong growth in the Baltic countries by opening in Jelgava the fourth K-rauta store in Latvia. The total floor area of the outlet opened on Friday is 7,770 sqm, and it has a parking lot for 150 cars.

The opening of the K-rauta store in Jelgava raises the total number of Rautakesko's stores in the Baltic countries to 97, of which 21 are run by Rautakesko and 76 by business partners. This year, Rautakesko is opening four new K-rauta stores in the Baltic states, the next one in Liepaja, Latvia in September.

The opening of the Jelgava store is part of Rautakesko's internationalisation strategy, which involves healthy, strong growth in Estonia, Latvia, Lithuania, Sweden, Norway and Russia. In its operating area, Rautakesko is investing in 13 new retail outlets this year: four in the Baltic countries, four in Finland, two in Russia, two in Sweden, and one in Norway.

During the first half of 2006, the retail sales of Rautakesko's chains totalled €1,312.2 million, of which €810.8 million (61.8%) came from outside Finland. Judged by the total value of retail sales, Rautakesko's chains are among the five largest European hardware and builders' supplies chains.

Rautakesko's international K-rauta concept is based on the large selection of hardware store items including, in addition to building supplies, for example products, ideas and solutions related to interior decoration and gardening.

Photos of the K-rauta store in Jelgava and Rautakesko's Baltic operations can be downloaded from Kesko's website at www.kesko.fi/material, Image archive, Rautakesko.

Further information:

Managing Director Guntis Sokolovskis, A/S Rautakesko, tel. +371 29262698

Vice President Jouko Björkman, Rautakesko, tel. +358 50 5026400

Rautakesko is engaged in the hardware and builders' supplies and interior decoration trade in Finland, Sweden, Norway, the Baltic countries and Russia. It manages and develops its retail store chains and B-to-B Service in its operating area. Rautakesko is responsible for the chain's concepts, marketing, purchasing and logistics services, store network and retailer resources. Rautakesko accounted for approximately 19% of the Kesko Group's total net sales in 2005.

Kesko is the most versatile provider of trading sector services in the Baltic Sea area. In close cooperation with retailer entrepreneurs and other partners Kesko produces retail and wholesale services that are highly valued by customers. Kesko operates in Finland, Sweden, Norway, Estonia, Latvia, Lithuania and Northwest Russia.