STOCK EXCHANGE RELEASE January 22, 2008 Financial Impact of Closing the Irish Factory As part of the restructuring and development of its lure manufacturing operations in Europe, Rapala VMC Corporation ("Rapala") informed in December about plans to close its lure factory in Ireland. The manufacturing operations in Ireland will discontinue in the end of April 2008. The average number of personnel in the Irish factory has been declining in the last few years and was some 20 persons at the end of 2007. The manufacturing functions of the Irish factory will be taken over by the Group's lure factory in Estonia that will continue finalizing, testing and packaging the products. At the same time, significant part of assembly work is being transferred from Estonian factory to Rapala new lure factory in Russia, established in 2007. The Russian factory employs currently close to 50 persons. Rapala will book a restructuring provision of 1.1 MEUR in the fourth quarter for the costs related to the closing of the Irish factory. After the closing of the factory and transfer of its duties to the Estonian factory, the annual savings are expected to reach some 0.7 MEUR. Updated Information on the Consolidation of French Operations Consolidation of all Rapala's French operations to Morvillars in Eastern France proceeds. This restructure will affect almost 90 persons in France, who were all offered work in the new location. The relocation of first distribution unit, Ragot, has been completed. Distribution unit Waterqueen and fishing line supplier Tortue moves are planned for mid-2008 and hook distributor VMC Europe during the third quarter of 2008. The information on the restructuring provision to be booked in the fourth quarter has been updated and decreased to 2.5 MEUR (original estimate was 2.8 MEUR). In addition to the 0.1 MEUR expense booked in the third quarter, this restructuring will cause some 0.5 MEUR other expenses that will be booked when incurred between October 2007 and September 2008. Rapala sign a sale agreement for the warehouse and office building in Saint Marcel in January 2008 and will book a capital gain of some 0.9 MEUR in the first quarter of 2008. The plan is also to sell the warehouse and office building in Loudeac. In December, Rapala sold its fishing tackle shop in Antibes without any significant effect on the fourth quarter financials. After all relocations have been made and the new consolidated organisation is up and running, the annual savings are expected to reach 1-2 MEUR. RAPALA VMC CORPORATION Jorma Kasslin Chief Executive Officer For further information: Jouni Grönroos, Chief Financial Officer, tel. +358 9 7562 540 Olli Aho, Company Councel, tel. +358 9 7562 540 Distribution: Helsinki Stock Exchange Main Media Rapala VMC Corporation is a leading fishing tackle company and the global market leader in the fishing lures, treble hooks and fishing related knives and tools. The Group also has a strong global position in other fishing categories. The Group has its own distribution companies in all the main markets and the largest distribution network in the industry. The main manufacturing facilities are located in Finland, France, Estonia and China. The Group brand portfolio includes the leading brand in the industry, Rapala, and other global brands like VMC, Storm, Blue Fox, Luhr Jensen, Williamson and Marttiini. The Group, with net sales of EUR 227 million in 2006, employs more than 4 000 people in 29 countries.