10 January, 2008 FOR IMMEDIATE RELEASE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN POWERFLUTE OYJ Powerflute Oyj ("Powerflute" or the "Company"), (traded on AIM: POWR), which operates a paper mill in Finland and manufactures high quality Nordic semi-chemical fluting, is pleased to announce that it today applies for an additional listing for the Company's shares of no par value (the “Shares”) on the First North list, the alternative market of the OMX Nordic Exchange Stockholm AB. The intended additional listing would take place in the Finnish section of the First North list and the Shares would be traded in Euros. First North is an alternative marketplace within OMX Nordic Exchange Stockholm AB operated by Swedish OMX group. Companies on First North are not subject to the same rules as companies on the regulated main market. Instead they are subject to a less extensive set of rules and regulations adjusted to small growth companies. All companies with shares traded on First North have a Certified Adviser who monitors that the rules are followed. E. Öhman J:or Fondkommission AB of Stockholm (“Öhman”) will act as Certified Adviser in connection with the trading of the Shares on the First North list. Trading on First North is subject to a number of conditions including sufficient Shareholder base and publication of a company description. If all of the conditions are satisfied, the Shares are expected to begin trading approximately by the end of January 2008. Don Coates, the CEO, commented, "We are very excited about the opportunity to trade on First North. 12.5 per cent. of Powerflute's Shares were placed by Öhman in the Nordic region at the time of the AIM IPO in May and we've seen growing interest towards our Shares particularly from Finland. A listing on First North will complement our existing trading facility on AIM and should add greater liquidity and depth of distribution." For additional information please contact: Financial Dynamics: Billy Clegg +44 (0)20 7269 7157 Collins Stewart Europe Ltd: Nick Ellis Philip P. Roe +44 (0)20 7523 8350 E.Öhman J:or Fondkommission AB Vesa Heikkilä +358 (0)9 8866 6021 A copy of this announcement has been placed on the Company's website www.powerflute.com. Copies of the announcement will not be dispatched to shareholders. Note to Editors Powerflute Powerflute is a holding company which, through its wholly-owned subsidiary Savon Sellu Oy (together the “Group”), operates a 300,000 tonne per annum rated capacity paper mill near Kuopio, Finland, and manufactures a specialised high quality grade of fluting called nordic semi-chem fluting. The Group is one of only three producers of nordic semi-chem fluting (sold by the Group as “Powerflute™”) in the world. In accordance with its strategy, the Company may in the future also acquire and manage complementary companies or assets related to paper and packaging or other forestry derivatives. Additional information on Powerflute is available on the Company's website at www.powerflute.com . First North First North is an alternative marketplace within OMX Nordic Exchange Stockholm AB operated by Swedish OMX group. Companies on First North are not subject to the same rules as companies on the regulated main market. Instead they are subject to a less extensive set of rules and regulations adjusted to small growth companies. The risk in investing in a company on First North may therefore be higher than investing in a company on the main market. All companies with shares traded on First North have a Certified Adviser who monitors that the rules are followed. The exchange approves the application for admission to trading. Additional information on First North is available on the website at www.omxgroup.com/nordicexchange/firstnorth/ Trading on First North Trading on First North is carried out in the electronic trading system SAXESS, developed by OMX. SAXESS offers functionality to support both order driven markets and price driven markets. For order driven markets, bids and offers are entered in the relevant order book and automatically matched to trades when price, volume and other order conditions are met. For price driven markets, interests are entered into the relevant order book and transactions are negotiated manually and reported into the system. SAXESS also offers functionality to support issuing of new bonds via an electronic order book. The trading is decentralized, which means that member firms are connected to the system and trade from their respective home offices, inside and outside the Nordic countries. Trades in Powerflute's Shares between the AIM Market and the First North Market The primary listing of Powerflute is on the AIM market. The actual shares are traded in the AIM market but since non-UK issuers' shares are not CREST (electronic settlement system operated by Euroclear UK & Ireland) eligible the traded shares are settled in the form of depository interests (DI) issued by Capital IRG Trustees Limited (Capita). It is possible for the holders of Powerflute's DIs to sell their DI's to the First North market. It is also possible for the Shareholders in Powerflute to sell their Shares to the AIM market. The DIs sold to the First North market will be converted to Shares. The Shares sold to the AIM market will not be converted but will remain in Finland by virtue of Capita issuing depository DIs in the UK's CREST system. Should shareholders wish to transfer shares into depositary interests or vice versa, they should contact the Company registrars, Capita IRG Trustees Limited, on +44 (0)20 8639 2209 for further details.
Admission to trading on First North
| Source: Powerflute