Subscriptions for Kesko Corporation's B shares with warrants and application for listing

During 1 to 9 December 2004, a total of 855,796 new Kesko Corporation B shares were subscribed for with the B and C warrants issued under Kesko Corporation's year 2000 stock option scheme. 411,481 of these were subscribed for with B warrants and 444,315 with C warrants. In addition, during 1 to 30 September 2004 and during 16 to 30 November 2004, a total of 1,155,656 new company B shares were subscribed for with the B and C warrants issued under the year 2000 stock option scheme.

In accordance with the terms of the stock option scheme, the share subscription price with B warrants was EUR 9.87 per share and with C warrants EUR 8.11 per share before 12 November 2004, the record date for the payment of the additional dividend decided by Kesko Corporation's Extraordinary General Meeting of 9 November 2004. As from the record date, the share subscription price with B warrants is EUR 8.87 per share and with C warrants EUR 7.11 per share.

Kesko Corporation's Board of Directors decided to apply for listing these new B shares, subscribed for in September, November and December, in the "Kesko B" series on the main list of the Helsinki Stock Exchange. At the same time, an application will be made for combining the shares subscribed earlier this year and traded on the main list of the Helsinki Stock Exchange as the "Kesko B uudet" series with the ”Kesko B" series.

The increase in share capital corresponding to share subscriptions made during 1 to 30 September 2004 and during 16 November to 9 December 2004 is planned to be entered in the Trade Register on 31 December 2004. The plan is also to apply for all of the above shares to be included in the stock exchange list as part of the ”Kesko B” series as from 3 January 2005.

In 2005, the Board of Directors intends to continue the policy stated in the terms and conditions of the stock option scheme approved by the Annual General Meeting according to which applications are made for quoting the new B shares, each year subscribed for with the B and C warrants of the year 2000 stock option scheme, on the main list of the Helsinki Stock Exchange as a separate ”Kesko B uudet” series.

Applying for listing the new B shares as a separate “Kesko B uudet” series on the stock exchange list is in order to comply with paragraph 3.5 of the terms of the year 2000 stock option scheme stipulating that B shares subscribed for with B or C warrants do not entitle to dividends until the financial year during which they were subscribed for and paid.

A stock exchange notification concerning share subscriptions made with warrants issued under the year 2000 stock option scheme was last published on 1 December 2004.

The previous time that Kesko Corporation’s share capital was increased was in August to correspond to subscriptions made with warrants during 1 to 15 July 2004 (stock exchange notification on 4 August 2004).

The terms and conditions of the year 2000 stock option scheme were published in a stock exchange release on 10 April 2000.

Further information is available from Corporate Counsel Jarkko Karjalainen, telephone +358 1053 22602.

Kesko Corporation
Corporate Communications

Erkki Heikkinen
Senior Vice President

DISTRIBUTION
Helsinki Stock Exchange
Main news media