HK RUOKATALO AND SAARIOINEN SIGN PRELIMINARY AGREEMENT ON

HKScan Corporation    STOCK EXCHANGE RELEASE  27 February 2008, at 8am


HK RUOKATALO AND SAARIOINEN SIGN PRELIMINARY AGREEMENT ON SOURCING CHICKEN RAW
MATERIAL 

HK Ruokatalo Oy, the company responsible for the HKScan Group's Finnish
operations, has been planning to focus on boned chicken products and the
processing of boned chicken raw material at its Eura production plant. The
company seeks cost savings and improved productivity through this
specialisation. 

HK Ruokatalo intends to continue offering also whole broilers and bone-in
chicken products, and has therefore studied the possibilities of sourcing
Finnish raw material for the manufacture of these. 

Ruoka-Saarioinen Oy, a part of the Saarioinen Group, has been planning to
specialise in processing bone-in chicken while also continuing the
comprehensive processing and sales of all chicken products. 

HK Ruokatalo and Ruoka-Saarioinen have discussed the possibility of sourcing
the meat raw material for chicken products from each other with the goal of
both parties ensuring the sufficient supply of Finnish raw materials for their
own product manufacture. The two companies have signed a preliminary agreement
under which HK Ruokatalo would source the raw materials for bone-in chicken leg
and split breast products as well as whole broilers from Saarioinen while
Ruoka-Saarioinen would acquire its boned chicken raw material from HK
Ruokatalo. 

When implemented, the arrangement would generate efficiency benefits and
increase capacity utilisation rate and productivity at both companies, which
will ultimately also benefit consumers. Both HK Ruokatalo and Ruoka-Saarioinen
can also be mutually assured of a constant supply of Finnish raw materials. The
contractual arrangements will have no impact on the competitive relationship
between the two companies or their product offerings. 

The execution of the final contract now tentatively agreed is conditional on
confirmation on issues pertaining to i.a. competition legislation. 

In 2007, HK Ruokatalo's plant in Eura processed 42.5 million kg of chicken
while the annual processing volume at Ruoka-Saarioinen's Sahalahti plant was
10.8 million kg. 


HKScan Corporation


Kai Seikku
CEO

Further information:
Managing director Jari Leija, HK Ruokatalo Oy, tel. +358 (0)10 570 6434.



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HK RUOKATALO AND SAARIOINEN SIGN PRELIMINARY AGREEMENT ON SOURCING CHICKEN RAW MATERIAL
