Stockmann plc's Annual General Meeting, which was held in Helsinki on March 20, 2007, elected Kaj-Gustaf Bergh, managing director of Föreningen Konstsamfundet r.f., as a new member of the Board to replace Lasse Koivu, M.Sc. (Econ.), who has stepped down from the Board. At its organization meeting held after the Annual General Meeting, the Board of Directors elected Christoffer Taxell, LL.M., as its new chairman. The Annual General Meeting approved the financial statements for the financial year January 1 - December 31, 2006, granted release from liability to the responsible officers, and decided to pay a dividend of EUR 1.30 per share for the past financial year. The Board of Directors' proposals to the Annual General Meeting were approved without changes. CEO's review In his review at Stockmann's Annual General Meeting in Helsinki on March 20, 2007, CEO Hannu Penttilä observed that last year the Group once again broke its earnings records. Profit before taxes was up 25 per cent to EUR 128.9 million. Return on capital employed rose to 22.9 per cent and the operating profit margin to 10.0 per cent, surpassing the financial targets set for 2011. Mr Penttilä stated that these key figures will dip somewhat during the next couple of years due to ongoing large investments. That said, Stockmann aims to achieve these targets with greater consistency by the year 2011. Earnings have improved thanks to both gains from structural reorganization and the vigorous improvement in earnings abroad. According to CEO Penttilä, Stockmann has now reached a critical mass in its operations abroad after a long stage of basic investments, enabling it to rack up a profit. Including non-recurring items, 36 per cent of the Group's earnings were generated abroad last year. CEO Hannu Penttilä observed that all of the Stockmann Group's divisions - the Department Store Division, Hobby Hall and Seppälä - are currently in good or better shape. Each of the divisions has a credible and realistic expansion strategy that focuses on the geographical areas, the Baltic countries and Russia - and, in the future, probably Ukraine as well. A dividend of EUR 1.30 per share The Annual General Meeting resolved that a dividend of EUR 1.30 per share is to be paid for the 2006 financial year. The total dividend payout will amount to EUR 72.1 million. The dividend will be paid on March 30, 2007, to those shareholders who on the record date for the dividend payout, March 23, 2007, have been entered in the Shareholder Register kept by Finnish Central Securities Depository Ltd. Election of the members of the Board of Directors The Annual General Meeting resolved, in accordance with the proposal of the Board's Appointments and Compensation Committee, that seven members be elected to seats on the Board of Directors. Following the announcement by Lasse Koivu, chairman of the Board of Directors, that he will no longer be available as a member of the company's Board of Directors, the Annual General Meeting re-elected Erkki Etola, managing director, Oy Etola Ab; Professor Eva Liljeblom; Kari Niemistö, managing director, Oy Selective Investor Ab; Christoffer Taxell, LL.M.; Carola Teir-Lehtinen, Senior Vice President, Corporate Communications, Fortum Corporation; and Henry Wiklund, managing director, Svenska litteratursällskapet i Finland r.f., to the Board and elected Kaj-Gustaf Bergh, managing director of Föreningen Konstsamfundet r.f., as a new Board member, for a period of office up to the end of the next Annual General Meeting. At its organization meeting on March 20, 2007, the Board of Directors elected Christoffer Taxell as chairman and re-elected Erkki Etola as vice chairman. The Board of Directors appointed Christoffer Taxell as chairman of the Appointments and Compensation Committee and re-elected Erkki Etola, Eva Liljeblom and Henry Wiklund as the other members. Auditors Elected as regular auditors were Jari Härmälä, Authorized Public Accountant, and Henrik Holmbom, Authorized Public Accountant. KPMG Oy Ab, Authorized Public Accountants, will continue as the deputy auditor. Amendment to the Articles of Association Under the new Companies Act, a shareholder who has not been registered in the book-entry system does not have the right to participate in a General Meeting. Accordingly, the Annual General Meeting resolved to amend Article 12 of the Articles of Association for compliance with the new Companies Act. Authorization to transfer treasury shares The Annual General Meeting passed a resolution to authorize the Board of Directors to decide on transferring a maximum of 373 134 of the company's own Series B shares (treasury shares) in one or more instalments. The authorization will be valid for five years. STOCKMANN plc Hannu Penttilä CEO ANNEXES Amendment to Article 12 of the Articles of Association DISTRIBUTION Helsinki Stock Exchange Principal media ANNEX AMENDMENT TO ARTICLE 12 OF THE ARTICLES OF ASSOCIATION PREVIOUS WORDING Article 12 Right to vote and registration to attend a General Meeting A shareholder shall exercise his right to vote at a General Meeting personally or via a proxy. In order to participate in a General Meeting, a shareholder who has been entered in the Shareholder Register must notify the Company of his intention to attend the meeting at the time and place mentioned in the notice of meeting. The date of notification can be no earlier than ten (10) days before the meeting. A shareholder whose Shares have not been transferred to the book- entry system shall also have the right to participate in a General Meeting provided that the shareholder has been entered in the Company's Shareholder Register prior to September 28, 1994. In this case the shareholder must present his share certificate or other documentation indicating that title to the Shares has not been transferred to the book- entry system. NEW WORDING Article 12 Right to vote and registration to attend a General Meeting A shareholder shall exercise his right to vote at a General Meeting personally or via a proxy. In order to participate in a General Meeting, a shareholder who has been entered in the Shareholder Register must notify the Company of his intention to attend the meeting at the time and place mentioned in the notice of meeting. The date of notification can be no earlier than ten (10) days before the meeting.