SELF-HELP MEASURES UNDERTAKEN BY THE LESSOR PREVENTS STOCKMANN FROM KEEPING A DEPARTMENT STORE OPEN FOR BUSINESS IN MOSCOW CITY CENTRE FOR THE TIME BEING

STOCKMANN plc
Company Announcement
13.5.2008 at 16.30

SELF-HELP MEASURES UNDERTAKEN BY THE LESSOR PREVENTS STOCKMANN FROM
KEEPING A DEPARTMENT STORE OPEN FOR BUSINESS IN MOSCOW CITY CENTRE FOR THE
TIME BEING

Stockmann's department store located in the Smolensky Passage shopping
centre in Moscow city centre is closed until further notice. The lessors
of Stockmann in the said shopping centre are Mostroiekonombank and its
subsidiary, the real estate company of Smolensky Passage. Stockmann has
operated in the premises since 1998 and the company has a right of option
under the lease agreements to extend the lease period until 2018. In
accordance with the lease agreements, Stockmann has in 2006 informed the
lessors that it will exercise this option. The lessors have disputed the
existence of the right of option and Stockmann has, in accordance with the
agreements, submitted the matter to be decided by the International
Commercial Arbitration Court of Moscow (ICAC). The Arbitration Court has
found for Stockmann and stated that Stockmann has the right to continue
the lease until April 30, 2018, in accordance with the terms and conditions
currently in force. As to the decision regarding 10 per cent of the leased
premises, it was further required that the terms and conditions of the
lease agreement must comply with the peremptory provisions of the Russian
legislation, which requirement the current lease agreement has already
satisfied.

Despite the decisions of the Arbitration Court, the lessors have by
relying on self-help partly discontinued the distribution of electricity
and have by their activities made it impossible to continue business
operations of the department store as from Tuesday, May 13, 2008. The
measures are in breach of the lease agreements currently in force and
grossly violate the legitimate rights of Stockmann as the lessee. As a
result, Stockmann will commence legal action against the lessors and
present a substantial claim for damages for the prevention to use the
premises.

The department store in question is one of the four Stockmann department
stores located in Moscow. Stockmann will open its fifth department store
in the Metropolis shopping centre in October 2008, making it the fifth
store in the Moscow city area. The sixth department store in Moscow will
be opened in Rostokino shopping centre either in late 2009 or early 2010.

A total of 350 Russian employees work at the department store, and their
access to work is prevented by the actions undertaken by the lessors. If
the situation is prolonged, Stockmann will endeavour to offer a number of
them work in its other department stores located in the Moscow area.

Additional information:
CEO Hannu Penttilä, tel. +358 9 121 5801
Executive Vice President with responsibility for the
Department Store Division Heikki Väänänen, tel. +358 9 121 5230
Development Director for the Group's international operations
Jussi Kuutsa (Moscow), tel. +358 9 121 5268


STOCKMANN plc

Hannu Penttilä
CEO


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OMX Nordic Exchange Helsinki
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