KESKO FOOD LTD AND KESWELL LTD START OPERATIONS ON 1 APRIL 2001

In accordance with the decision made in August 2000, Kesko Corporation’s business operations for foods and home and speciality goods are transferred on 1 April 2001 to Kesko Food Ltd and Keswell Ltd, subsidiaries wholly owned by Kesko Corporation. The related deeds of assignment were signed today, on 30 March 2001. Kesko Corporation’s subsidiaries responsible for the hardware and builders’ supplies and the agricultural and machinery trade will start operations on 1 October 2001.

Kalervo Haapaniemi is President of Kesko Food Ltd that is responsible for the foods trade, and Matti Laamanen is President of Keswell Ltd that is responsible for the home and speciality goods trade. In 2000, the net sales of Kesko’s Foodstuffs Division were EUR 3,453 million and operating profit was EUR 65.4 million. The net sales of the Home and Speciality Goods Division were EUR 726 million and operating profit was EUR 0.4 million.

The incorporation of business operations by division gives Kesko more flexibility to respond to the challenges of markets and internationalisation.

For further information, please contact President Kalervo Haapaniemi of Kesko Food Ltd, telephone +358 10 5311, or President Matti Laamanen of Keswell Ltd, telephone +358 10 5311.

Kesko Corporation
Corporate Communications

Erkki Heikkinen
Senior Vice President

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