HKScan Oyj STOCK EXCHANGE RELEASE, 31 May 2007 at 11am HKSCAN TO RATIONALIZE OPERATIONS IN SWEDEN Scan AB, responsible for the HKScan Group's business operations in Sweden, is launching an efficiency programme estimated to deliver annual savings in the region of EUR 18-22 million upon completion. Underlying this two-year programme is to improve competition strengths and the unsatisfactory financial performance of Scan AB. The planned efficiency programme comprises competitiveness-boosting investments to modernise production techniques and work practices at plants. The investments concern several industrial locations. In a further bid to enhance efficiency, Scan's business will be reorganised into two profit centres: Meat Business and Processed Meat and Convenience Food Business. The marketing and sales organisation will be overhauled to better meet today's demands on the interaction with the customer base. Implementation of the efficiency measures included in the programme calls for investments of roughly EUR 20 million in the years 2007-2009. The company will also take write-downs of approximately EUR 10-15 million. Along with the two-year efficiency programme the future need for labour is reducing in several industrial plants. The programme will affect in all an estimated 400 jobs, corresponding to ca. 12 percent of current Scan personnel. The majority of the cuts will concern production employees. Accurate measures will be specified as they become actual while the programme is advancing. Personnel representatives have been informed on the planned programme and its realization. The savings now sought are expected to be realised in full starting from Q3 in 2009. The efficiency programme is a continuation of the centralisation of production currently underway at Scan and initiated by Swedish Meats in summer 2006. Centralisation measures have involved the closure of the Skurup processing plant in autumn 2006 and the shutdown of the Visby cutting plant as well as operations in Helsingborg and Malmö in early 2007. Operations in Kävlinge will be discontinued in the third quarter of 2008. Besides the programme, Scan is also starting work on a national distribution centre in Linköping together with an outside partner. The centre will enhance efficiency and flexibility in logistics while also allowing further progress to be made in customer service and delivery reliability. Construction will begin in June 2007 and the distribution centre should come on line in 2010. HKSCAN OYJ Kai Seikku CEO Further information: CEO Kai Seikku, HKScan Oyj. Please leave any messages for him to call with Katja Backman on +358 10 570 2428 DISTRIBUTION: Helsinki Exchanges Main media www.hkscan.com