Finnish Competition Authority granted new exemption to Kesko Food’s pricing

The Finnish Competition Authority has today granted an exemption to Kesko Corporation’s subsidiary Kesko Food Ltd, on the basis of which it can decide the highest retail prices for Pirkka products and some other products sold at K-food store chains. The exemption is valid until the end of 2004.

The exemption entitles Kesko Food to determine the highest retail prices for some of the products sold at K-food stores. Maximum prices can be determined for those products included in the chain selection of each K-food store chain which do not account for more than 35 percent of the average sales of the stores in each size category of the chain, calculated annually afterwards, and for all Pirkka products.

The exemption now granted by the Finnish Competition Authorityis valid until the end of the year 2004. A Government bill concerning an amendment to the Act on Competition Restrictions is currently before the Finnish Parliament. It has been proposed that the amendment come into force on 1 May 2004, after which date new exemptions will no longer be granted. According to the Government bill, in the Competition Restrictions Act the advance evaluation of exceptions by competition authorities will be replaced by evaluations made by entrepreneurs themselves on the fulfilment of those conditions which allow for an exception from the provisions of the Act on Competition Restrictions.

The exemption now granted is an extension to the exemptions concerning K-food store chains which were granted by the Finnish Competition Authority in 2001 and whose validity it extended in December 2003 until 30 April 2004. The exemptions granted by the Finnish Competition Authority in 2001 concerning Rautakesko Ltd’s, Kesko Agro Ltd’s and Keswell Ltd’s chains are valid until 31 December 2005.

For the time being, Kesko Food applies the present terms of the exemptions obtained in 2001 in its chain operations. Stock exchange releases about the exemptions granted in 2001 were published on 29 January 2001 and 19 February 2001, and about the extension to the exemptions on 23 December 2003.

Further information:

Kalervo Haapaniemi, President of Kesko Food Ltd, tel. +358 1053 22204

KESKO CORPORATION
Corporate Communications

Erkki Heikkinen
Senior Vice President

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