KESKO HAS BEEN SERVED SUMMONS FROM NINE CITYMARKET RETAILERS

Kesko Corporation has been today served summons from nine Citymarket retailers to whom Kesko has given notice. According to the summons, the Citymarket retailers´ primary demand is that Kesko shall be obliged to pay a total of FIM 91 million as compensation for the notices that they claim to be contrary to the contracts.

The retailers´ alternative demand is that, in case the district court will find that the notices have been given according to the contracts, that the condition of notices to terminate the contracts should be modified in the way that the reasonable period of notice should be 24 months instead of the 6 months stated in the contracts. On the basis of this, the retailers´ alternative demand is that their lost profits for 18 months shall be compensated, amounting to a total of about FIM 68 million. In addition, the retailers demand that Kesko shall be obliged to compensate the retailers for damages caused to them by the increase of wholesale prices, which they regard as groundless, a total of maximum FIM 9 million, as well as to compensate their legal expenses. In addition, one retailer demands compensation of FIM 800,000 for renovation expenses. All the amounts claimed are subject to penal interests for delay.

Kesko contests all the claims presented against it as groundless and sees that that Kesko has had legal grounds to give a notice to terminate the contracts. Kesko will demand the Citymarket retailers that have taken legal action against it to give a full compensation for their legal costs and for any other damages possibly caused to it.

Kesko Corporation
Corporate Communications

Erkki Heikkinen
Senior Vice President
tel. +358 1053 22721

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