KESKO PURCHASED A HARDWARE STORE CHAIN IN ESTONIA

On 13 March 2000, Kesko signed a preliminary agreement to acquire Estonia’s largest hardware store chain, Ehitusmaailm. The final deal was made today.

Kesko purchased 98.4 percent of the share capital of AS Fanaal, the owner of the chain, and made a bid for the rest of the shares. Fanaal owns five hardware stores in Estonia and one in Latvia. In 1999, the total net sales of AS Fanaal in Estonia and Latvia amounted to about FIM 300 million (EUR 50 million).

The acquisition of Ehitusmaailm is part of Kesko’s internationalisation strategy, in accordance with which Kesko aims at expanding its hardware store operations in the Nordic and Baltic countries. Kesko has six K-rauta stores in Sweden and the aim is to build a network of around 25 K-rauta stores operating in Sweden.

For further information, please contact Vice President Paavo Moilanen, telephone +358 1053 20410, GSM +358 500 564 629, or Director Simo Manner, telephone +358 1053 20123, GSM +358 500 407 455.

Kesko Corporation

Corporate Communications

Erkki Heikkinen

Director

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