VV-Auto to expand its retailing

VV-Auto Oy and its retailing company Helsingin VV-Auto Oy have agreed to acquire the Volkswagen and Audi business operations from Stockmann Auto Oy Ab starting from 1 March 2006. The implementation of the deal is subject to the approval by the Finnish Competition Authority. The acquisition will strengthen VV-Auto's position in car retailing.

The deal covers Stockmann Auto Oy Ab's sales and after-sales services concerning Volkswagen and Audi in Helsinki, Espoo and Vantaa. The purchase price and the liabilities accepted amount to approximately EUR 28 million. The price includes the Audi property in Espoo and the Volkswagen property in Vantaa. The preliminary sales of the acquired business operations, tax included, totalled some EUR 178 million in 2005.

The Volkswagen and Audi business operations in question have approximately 300 employees who will be transferred to VV-Auto under their previous conditions. Car sales and maintenance will continue as usual during the transition period.

VV-Auto Group, a limited company owned by Kesko Corporation, is engaged in import and retail trade. The company imports Volkswagen, Audi and Seat passenger cars and Volkswagen commercial vehicles. It has two retail companies: Turun VV-Auto Oy and Helsingin VV-Auto Oy.

VV-Auto Group has 360 employees. The Group's net sales totalled over EUR 707 million in 2005. The market share of Volkswagen passenger cars in Finland was 10.1 percent, Audi had a market share of 3.1 percent and Seat's share was 0.9 percent.

Further information isavailable from VV-Auto Oy's President Erkki Sillantaka, tel. +358 9 758 3211 and Pekka Lahti, who will become President on 1 February, tel. +358 9 75 831.

Kesko Corporation

Paavo Moilanen
Senior Vice President, Corporate Communications

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