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Eastern European Markets
NEWS RELEASE
March 15, 2007

Rautakesko opens its biggest store in Estonia

Rautakesko has today opened its biggest store in Estonia. The new store, K-rautakesko Tondi, is located in Tallinn at the intersection of the Pärnu highway and the ring road. The store is the first one in Estonia built according to the new K-rauta concept. The store employs 100 people.

"The Tondi store helps us implement Rautakesko's mission - to help customers make the right choices for better living in the Nordic and Baltic countries and in Russia - with the best product selections, modern stores and competent personnel", says Raul Kadaru.

The showroom areas in the stores are surrounded by the departments of soft interior decoration materials and building materials, tools and house technology. Ideas and solutions are presented in showrooms. Customers can place orders for installation service in connection with purchasing. The drive-through builder's yard makes shopping easy and quick, and it also has an entrance to the store so that customers can collect all the materials they need at the same visit.

All of K-rautakesko Tondi's selling areas are covered, which makes shopping pleasant in every season of the year. The 10-member team serving professional and B-to-B customers has a separate office in the store. K-rauta serves both consumer and business customers.

The product categories of the over 9,000 square metre outlet include a wide selection of gardening, interior decoration, building and house technology products and tools. The in-store offer is complemented by the 5,500 square metre drive-through builder's yard.

At the end of 2006, the K-Group had 342 hardware and builders' supplies stores, of which 180 in Finland, 14 in Sweden, four in Estonia, five in Latvia, 14 in Lithuania, seven in St. Petersburg, Russia, and 118 in Norway. Their total sales were 3,139 euros. In addition to the Umeå store in Sweden and the Tondi store in Tallinn, Estonia, Rautakesko will open nine new stores during this year.

About Kesko
Kesko is a retail specialist whose stores offer quality to the daily lives of consumers through valued products and services at competitive prices. Kesko operates in the Nordic and Baltic countries and Russia.

About Rautakesko
Rautakesko Ltd (www.rautakesko.com) is a division parent company of Kesko Corporation and the market leader in the Finnish hardware and builders' supplies sector. Rautakesko's share of the hardware and builders' supplies trade is about 35%. Rautakesko develops the K-rauta and Rautia chains and is responsible for their marketing, purchasing and logistics services, store network and retailer resources. Rautakesko operates in Finland, Sweden, Norway, Estonia, Latvia, Lithuania and Russia.

Further information
Managing Director Raul Kadaru, Rautakesko AS, tel. +37 2 507 9696

www.rautakesko.com


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