Lännen Tehtaat plc STOCK EXCHANGE RELEASE January 19, 2007 at 9;20 a.m. LÄNNEN TEHTAAT REJECTS MAJORITY SHAREHOLDING IN BIOETHANOL PROJECT Lännen Tehtaat said in a stock exchange release in April 2006 that it had conducted a feasibility study into the launching of ethanol production in western/south-western Finland. Surveys show that this part of Finland has the best potential for this purpose. The region has sufficient grain- growing capacity to supply the raw material for an ethanol plant. It also home to one of the two main pig-farming areas in Finland, which is important for utilizing the animal feed by-products from an ethanol plant. The region also has a number of feed factories that could use some of the by-products from an ethanol plant as raw material for their animal feeds. The total cost of the investment was put at some EUR 55 million. Lännen Tehtaat considered Säkylä to be a highly suitable location for the plant in terms of the procurement of the grain raw material and ready infrastructure. The company has, however, decided that it will not implement the project in the way planned. Lännen Tehtaat, however, is prepared to take part in the project by providing good location conditions for a production plant at Säkylä, and it is ready to consider a minority shareholding in the company that would construct the plant there. The decision to withdraw from implementing the project is based on Lännen Tehtaat's strategic policy of focusing on the food business operations and is linked with today's news of the sale of majority shareholdings in Suomen Rehu Ltd and Avena Nordic Grain Oy to Hankkija-Maatalous Oy. Under a decision taken on December 21, 2006 the Ministry of Trade and Industry granted the project an investment subsidy of EUR one million. Lännen Tehtaat has today informed Pori Employment and Economic Development Centre and the Ministry of Trade and Industry that the project will not be conducted by Lännen Tehtaat. LÄNNEN TEHTAAT PLC Matti Karppinen CEO More details: Erkki Lepistö, tel. +358 10 402 7000. Distribution: Helsinki Stock Exchange Main media www.lannen.fi