Eastern European Markets
December 2, 2006

Rautakesko opens its seventh K-rauta in St. Petersburg

Rautakesko expands its operations in Russia by opening its seventh K-rauta in St. Petersburg today. The large outlet on Moskovskoe Shosse has a floor area of over 13,000 square metres and it employs a staff of 120. The store offers first quality solutions for building, refurbishing and interior decoration for both private and business customers.

The strengths of the store that complies with the international K-rauta concept include a large selection, an effective drive-through builders' yard and interior decoration solutions sold as packages. All K-rauta
stores have a special focus on staff training and competencies. Rautakesko operates in seven countries and can capitalise on its international competence and purchasing power to the benefit ofits customers.

"Our wide international experience provides the basis for the reliable, high-level services we offer to our customers. This is a major competitive advantage in the company that aims to become the marketleader in Northwest Russia and to achieve a significant position in the whole country," says Ilkka Sinkkonen, Country Manager for Russia.

Rautakesko is investing heavily on developing the network of hardware and builders' supplies stores in Russia. The previous K-rauta was opened in St. Petersburg in September. The five outlets of the Stroymaster chain acquired by Rautakesko last year have been operating under the name of K-rauta since August 2006.

Two more K-rauta stores will be opened in St. Petersburg on the main exit roads in 2007. Rautakesko plans to grow the K-rauta network in St. Petersburg to comprise 10-11 stores. In addition, 8-10 stores will be opened in and around Moscow in the next few years. K-rauta stores will also be established in other big cities. A photo of the new K-rauta in St. Petersburg can be downloaded
from "Image archive".

About Rautakesko
Rautakesko Ltd ( is engaged in the hardware and builders' supplies and interior decoration trade in Finland, Sweden, Norway, the Baltic countries and Northwest Russia. It manages and
develops its retail store chains and B-to-B Service in its operating area. Rautakesko is responsible for the chains' concepts, marketing, sourcing and logistics services, store network and retailer resources. Rautakesko's net sales totalled ¤1,610.0 million in 2005.
Kesko is the most versatile provider of trading sector services in the Baltic Sea area. In close cooperation with retailers and other partners it produces retail and wholesale services that are highly valued by customers. Kesko operates in Finland, Sweden, Norway, Estonia, Latvia, Lithuania and Russia.

Further information:
Ilkka Sinkkonen, Country Manager for Russia, Rautakesko Ltd,
tel. +7 495 764 0838
Ari Pärssinen, Store Site Director, Rautakesko Ltd,
tel. +358 500 609 506

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