Statement regarding Potential Acquisition

1st October 2008

                                       Powerflute OYJ

                          Statement regarding Potential Acquisition

Powerflute Oyj ("Powerflute"), which operates a paper mill in Kuopio, Finland
where it manufactures premium quality Nordic semi-chemical fluting, confirms
that it has agreed terms with the insolvency administrator of the estate of
Papierfabrik Scheufelen GmbH & Co for the purchase of the assets and business
of Scheufelen, a manufacturer of coated woodfree paper based in Lenningen,
Germany. 

The agreement is subject to due diligence and to final approval by the Board of
Directors of Powerflute. Accordingly the agreement may or may not lead to
Powerflute completing an acquisition. It is the current intention of the Board
of Powerflute to finance the acquisition from internal resources. 

A further announcement will be made as appropriate.

Ends

For additional information please contact:

Powerflute
Dermot Smurfit, Chairman
Don Coates, CEO
C/O Billy Clegg
+44 (0)20 831 3113

Öhman (Certified Adviser of Powerflute)
Arja Vayrynen	
+358 (9)8866 6021

Collins Stewart (Nominated Adviser of Powerflute)
Nick Ellis
+44 (0)20 7523 8350

Financial Dynamics (IR Agency of Poweflute)
Billy Clegg
Georgina Bonham	
+44 (0)20 831 3113


K Capital Source
Mark Kenny 
Jonathan Neilan
+353 (1) 631 5500


About Powerflute
Powerflute is a holding company and, through its wholly-owned subsidiary Savon
Sellu Oy, operates a 300,000 tonne per annum rated capacity paper mill which is
also called “Savon Sellu”. The Mill is located near Kuopio, Finland on the
shores of Lake Kallavesi and manufactures a specialised high quality grade of
semi-chem fluting called nordic semi-chem fluting which is made primarily from
birch wood sourced from Finland and Russia. 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. 

The Group's key customers comprise corrugated board and packaging manufacturers
including International Paper Company and Smurfit Kappa Group.