VMC AND UTAVIA HAVE BEEN GRANTED EXEMPTION BY THE FINNISH FINANCIAL SUPERVISION AUTHORITY FROM THE OBLIGATION TO LAUNCH A MANDATORY BID FOR ALL SECURITIES IN RAPALA

Rapala VMC Corporation
                    Stock Exchange Release
                    July 25, 2008 at 1.45 pm

Rapala VMC Corporation ("Rapala") has today received notification
from Viellard Migeon & Cie ("VMC") that VMC and Utavia s.à.r.l.
("Utavia") have been granted exemption by the Finnish financial
supervision authority from the obligation to launch a mandatory bid
for all securities in Rapala.

VMC has yesterday July 24, 2008 been notified by the Finnish
Financial Supervision Authority (the "FFSA") that the FFSA has
granted VMC and Utavia, a company owned by certain managers of
Rapala, an exemption from the obligation to launch a mandatory bid
for all securities in Rapala pursuant to Chapter 6, Section 10 of the
Finnish Securities Market Act (495/1989) (the "SMA") and the
implementing provision of the amendment 442/2006 to the SMA. The FFSA
has further confirmed that VMC may increase its direct holding above
30 per cent of the voting rights in Rapala without triggering the
obligation to make a mandatory bid provided, however, that VMC's
proportion of the voting rights in Rapala calculated in accordance
with Chapter 6, Section 10 of the SMA has at no time fallen back to
30 per cent or less.

It is hereby recalled that:

- VMC, together with its subsidiary de Pruines Industries, has been
the largest shareholder in Rapala since November 2005, when its
holding exceeded 30 per cent of the total voting rights in Rapala.

- On June  29, 2006, de Pruines Industries sold 1,610,000 shares in
Rapala to Utavia. These shares represented approximately 4.17 per
cent of the issued shares and voting rights in Rapala.

- Simultaneously, VMC and Utavia entered into an Investment and
Shareholders' Agreement (the "Shareholders' Agreement", secured by an
Investment and Shareholders' Agreement between Utavia and certain
managers of Rapala, and a unilateral undertaking given to VMC by said
managers of Rapala). The Shareholders' Agreement provides, amongst
other things, decision-making in Rapala and any transfers of Rapala
securities. Rapala has published information on the Shareholders'
Agreement in a stock exchange announcement of 29 June 2006 and in its
financial statements for 2006 and 2007.

- As a consequence of the share transaction between Utavia and de
Pruines Industries and the entry into of the Shareholders' Agreement,
the direct holding of the VMC group decreased on 29 June 2006 to
approximately 27.3 per cent of the issued shares and voting rights in
Rapala, but the joint holding and voting rights of VMC and Utavia
(which, together with Utavia's shareholders are considered as acting
in concert for the purposes of exercising control over Rapala as
stipulated in the SMA), remained above 30 per cent.

As the combined voting rights of VMC and Utavia has exceeded 30 per
cent of the total voting rights of Rapala shares as of June 29, 2006,
VMC would, based on the provision on the entry into force of
amendment 442/2006 to the SMA, be under an obligation to launch a
mandatory bid, in accordance with Chapter 6, Section 10 of the SMA
unless the combined voting rights in Rapala of VMC and Utavia fall to
30 per cent or less before July 1, 2009.

Considering that VMC's holding in Rapala has, however, based on the
provisions of the Shareholders' Agreement, effectively exceeded 30
per cent of the voting rights since November 2005, the FFSA has
granted an exemption from the obligation to make a mandatory bid.

RAPALA VMC CORPORATION

Jorma Kasslin
Chief Executive Officer

For further information, please contact:
Emmanuel Viellard, Chairman of the Board of Directors,
contact@viellardmigeon.com,
+33 384 27 82 61


Distribution: OMX Nordic Exchange in Helsinki and 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, Russia 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, Marttiini and Sufix. The Group, with net sales of EUR 242
million in 2007, employs more than 4 000 people in 30 countries.