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.