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Eastern European Markets
PRESS RELEASE
March 10, 2005

2004 a profitable year for John Nurminen

John Nurminen Oy grew at a clearly faster rate than the industry as a whole during 2004. The company's turnover was EUR 97 million and the operating profit before extraordinary items and taxes was EUR 9.6 million. The company's financial result developed very favourably and all business areas showed a positive result, as well.

The company's turnover was EUR 97 million, an increase of 17 per cent on the previous year. The operating profit before extraordinary items and taxes grew from EUR 5.6 million in the previous year to EUR 9.6 million. The return on investment was 23 per cent, thus exceeding the 14 per cent set by the company as its target. The company employed 678 persons, 551 of these working in Finland and 127 abroad.

Increases in the trade between Russia and Finland and in transit transports were the factors that most influenced the growth in the business. The strong growth in Russian economy was particularly apparent in the Railway Logistics Unit, which grew at a very fast pace. Transit transports produced an increase in the Vehicle Logistics Unit's operations.

"John Nurminen's turnover has increased during the last three years from EUR 60 million to EUR 97 million, or by 60 per cent. The development indicates that the objectives for growth and profitability are achievable. We expect to reach a turnover of approx. EUR 130 million by 2007," explains Managing Director Jan Lönnblad the company's growth objective.

John Nurminen identified in 2004 the focal areas that will enable it to grow in future years. Investments totalled EUR 15 million. The company developed significantly the business activities linked to railway traffic between Finland and Russia, which enhances the competitiveness of both the Timber Logistics and the Railway Logistics Units. Completion of the terminal construction and modernisation projects will also help expand the business activities. The largest project was the construction of a new chemical terminal at Mussalo in Kotka for Chemical Logistics, which is a service provided by the Cargo Handling and Value-Added Services Unit. The Vehicle Logistics Unit's terminal at the port of Paldiski in Estonia was opened in early 2005. The terminal enables the distribution of new vehicles to the Baltic and CIS countries via Estonia. Also the competitiveness of domestic vehicle transports was enhanced through diversifying the transport equipment and upgrading the information systems.

John Nurminen's business environment is expected to remain similar to that of 2004. The growth in the Finnish economy will continue at a very moderate rate, but the Russian and Baltic markets will continue to develop very positively. Possible industrial disputes will bring the most significant threat to the business environment with a possible negative effect on operations as well as on the 2005 financial result.

The investments made during the year will enable the turnover to grow moderately in 2005, as well. Development of the existing businesses and strengthening of the Units' competitiveness will be continued. In order to achieve the growth objective, expansion through acquisitions will be necessary and suitable targets for reaching John Nurminen's aims are constantly investigated.

Further information:
Managing Director Jan Lönnblad
tel. +358 10 545 2420
Administrative Director Kenneth Huomo
tel. +358 10 545 2598


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