Kermansavi Oy to merge with parent company

Tulikivi Corporation and  Kermansavi Oy's Boards of Directors have today decided
to merge Kermansavi Oy  into Tulikivi Corporation by absorption. The merger aims
to clarify the Group structure. The draft terms of merger will be registered in 
the Trade Register within a month. The planned registration date for            
consummation of the merger is December 31, 2007.                                

Kermansavi Oy manufactures Kermansavi fireplaces and utility ceramics. The      
merger will not affect the figures in the Group's financial statements.         

Tulikivi Corporation                                                            

Board of Directors                                                              
Matti Virtaala, Chairman of the Board                                           

Distribution: Helsinki Stock Exchange                                           
Principal media                                                                 

For additional information, contact: Tulikivi Corporation, 83900 Juuka, Finland,
tel. +358 207 636 000, www.tulikivi.com                                         
- Matti Virtaala, Chairman of the Board                                         
- Heikki Vauhkonen, Managing Director