Alma Media planning to consolidate operations of Lapland newspapers

Alma Media Corporation   Stock Exchange Release   20 March 2015, 10:00 a.m.
(EET)

ALMA MEDIA PLANNING TO CONSOLIDATE OPERATIONS OF LAPLAND NEWSPAPERS

Alma Media is planning to carry out significant changes in the production of its
two daily newspapers published in Lapland, namely Lapin Kansa and Pohjolan
Sanomat. According to the plan, the two newspapers’ editorial staffs, media
sales and production would be consolidated so that, beginning from June 2015,
Alma would be effectively publishing one 6-day newspaper, Lapin Kansa, in
Lapland. It would have another edition, with partly different contents, called
Pohjolan Sanomat, distributed in the Kemi–Tornio region.

At the same time, the online and mobile services of these newspapers will be
revamped. The online content would be available only to subscribers. In
addition, a new weekend supplement, called Sunnuntai, would be issued together
with the Saturday paper. Furthermore, on Sundays an entirely new digital paper
would be published.

These planned structural changes aim to achieve a sustainable improvement in the
poor financial situation of the newspapers, which has been going on for a long
time. In Lapland, where the distances are long, the distribution costs have been
increasing at an uncontrollable rate. The planned changes aim to secure the
newspapers’ future. By consolidating the functions the company would be able to
create a strong and vital provincial newspaper, the seventh largest in Finland
by the number of readers.

The employees of Lapin Kansa, Uusi Rovaniemi, Pohjolan Sanomat and Lounais-Lappi
have been today invited to statutory personnel negotiations in respect of the
operational change plan. The employer estimates that, if the plan is
implemented, potential repercussions may lead to staff reductions of no more
than 30 man-years for the Lapland newspapers. The statutory personnel
negotiations concern approximately 130 employees.

As of April 2014, Alma Media’s Lapland newspapers have been printed in Oulu, at
Kaleva’s print, and their distribution is carried out by Alma Manu. In 2014, the
circulation of Lapin Kansa was 27,841 (decrease of -4%) and it had 74,000
readers (no change). The circulation of Pohjolan Sanomat in 2014 was 15,303
(decrease of -6.9%) and it had 43,000 readers (increase of 4.9%).

In addition to Lapin Kansa and Pohjolan Sanomat, Regional Media, part of Alma
Media, publishes two other provincial papers, namely Aamulehti and Satakunnan
Kansa. The company’s newspaper portfolio also includes local and town papers
around Finland. Regional Media also includes the printing and distribution
company Alma Manu Oy.

For more information, please contact:

Kari Juutilainen
Senior Vice President, Regional Media
Tel. +358 50 4354159

Antti Kokkonen
Editor-in-Chief, Lapin Kansa
Tel. +358 50 3430379

Alma Media in brief

Alma Media is a media company focusing on digital services and publishing. In
addition to news services, the company’s products provide useful information
related to lifestyle, career and business development. The services of Alma
Media have expanded from Finland to the Nordic countries, the Baltics and
Central Europe. In 2014, the company employed an average of 1,830 professionals
(excluding deliverers), of whom approximately one quarter worked outside
Finland. Alma Media’s revenue in 2014 totalled approximately EUR 295 million.
Alma Media’s share is listed on NASDAQ OMX Helsinki. Read more at
www.almamedia.com.