Kesko Oyj (HEL:KESAV) RAUTAKESKO LTD PRESS RELEASE 11.09.2008 AT 15.00 1(2)

K-rauta and Finndomo have agreed that Finndomo's single-family houses will be sold by K-rauta stores in Russia. The first outlet selling them will be K-rauta Rustaveli in St. Petersburg.

"K-rauta has sold tens of thousands of Finndomo houses in Finland during our cooperation of over 30 years, and we have now signed an agreement with K-rauta on the sale of our houses in Russia, too," says Peter Nordgren, Sales and Marketing Director responsible for Finndomo's operations in Russia.

"K-rauta has an experience of many years of the Russian market and is running eight stores there. We believe that the Russian market for single-family houses will be growing considerably and, likewise, the sales of building supplies and interior decoration materials," says Mikko Pasanen, Rautakesko's Country Manager for Russia.

Finndomo is the leading Nordic manufacturer of single-family houses and it aims to be the leading foreign manufacturer of single-family houses in northeastern Russia.

"We will focus our sales efforts mainly in the St. Petersburg and Moscow areas which have tens of millions of inhabitants. The purchasing power is the highest in and around large cities and prosperity is increasing fastest in the middle class. We also have strong expertise in the construction of whole regions, and we want to pursue this in cooperation with the most important operators in the sector," says Pertti Lehti, Finndomo's President and CEO.

Finndomo and K-rauta at the housing fair in St. Petersburg

Finndomo has built twelve single-family houses for Russia's first housing fair area in St. Petersburg. The location of the fair is Koltushi, 15 kilometres east from St. Petersburg. The themes of the fair include the expertise and quality of Finnish single-family house building, the high-level design, and the well-thought-out, high-quality materials in building and interior decoration.

Architects Lasse Juselius and Severi Blomstedt have designed all two-storey Finndomo houses at the fair. Their floor area ranges between 130 to170 square metres and they have 5-6 rooms, terraces and car shelters. Finndomo has decorated three out of the twelve houses to show how a single-family house suits for families of different types. The homes presented at the fair also represent different trends, including Finnish design, Russian design and a home featuring K-rauta's interior design solutions.

House packages have been manufactured in Finland at Finndomo's Sonkajärvi factory. The houses have been built on site by Finnish and Russian constructors. The materials used are mainly Finnish.

The fair will be open from 15 September to 9 November 2008. During the first four weeks (until 12 October 2008) the fair will be open daily and during the following four weeks on weekends.

Further information: Rautakesko Ltd, Seppo Hämäläinen, Executive Vice President, tel. +358 1053 20810 Rautakesko Ltd, Mikko Pasanen Country Manager for Russia, tel. +358 40 743 6665 Finndomo Oy, Pertti Lehti, President and CEO, tel. +358 207 550 475 Finndomo Oy, Peter Nordgren, Sales and Marketing Director, tel. +358 207 550 427 Finndomo Rus, Elena Belova, General Director, tel. +7 (812) 363 02 17

Rautakesko Rautakesko (www.rautakesko.com) is engaged in the building and home improvement trade through the K-rauta, Rautia, Byggmakker and Senukai retail chains. Rautakesko manages its chains, combines their purchasing power, arranges efficient logistics, acquires store sites and guarantees strong marketing and development support to the stores. Rautakesko operates in the Nordic and Baltic countries, Russia, and Belarus. K-rauta stores (www.k-rauta.com) meet the customer demand for safe ideas and solutions for building and living. K-rauta stores operate in the Nordic and Baltic countries, and Russia.

Finndomo The Finndomo Group is the biggest supplier of prefabricated single-family houses in the Nordic countries. The principal market areas are the Nordic and Baltic countries, and Russia. Finndomo has a total of nine production plants in Finland and Sweden. In Finland, Finndomo manufactures houses under the Omatalo, Puutalo, Vaajatalot and Avainkoti brands. In Sweden the brands are Hjältevadshus, Modulenthus and Smartstart. Finndomo is the brand used in project sales and exports. In 2007, the company manufactured 3,000 homes. The Group's net sales in 2007 were about €210 million. The Group's total number of employees is approximately 1,100, about half of whom work in Finland. www.finndomo.fi

Kesko Oyj

http://www.kesko.fi

ISIN: FI0009007900

Stock Identifier: XHEL.KESAV

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