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Eastern European Markets
NEWS RELEASE
March 21, 2007

Atria to concentrate production in Russia

Atria's subsidiary in St. Petersburg, Pit-Product Ltd., in the context of implementing investment program plans to concentrate production capacities in Sinyavino and Gorelovo in the St. Petersburg region. During May 2007 the production capacities currently functioning in St. Petersburg at pr. Obukhovskoy Oborony will be terminated and transferred to Sinyavino in Leningrad region.

Decision to concentrate the production capacity in one place is made to improve operational efficiency of the company, increase the control over technological processes and simplify logistics. Costs improvement effect will be about EUR 1.5 million year basis and reduce of persons - approximately 220 persons. During the year 2007 cost improvement effect will be approximately EUR 700,000.

The investment program for the years 2006-2008 of Atria Group Plc, where Pit-Product belongs, includes a number of steps to increase the operational efficiency, investments into own premises in Sinyavino and construction of a new production site and logistics centre in Gorelovo. Investments to Sinyavino (total EUR 10 million) factory during 2006-2007 will increase the total capacity of the site nearly 50 percentage. The production capacity of the St. Petersburg factory is only one fifth of the Sinyavino capacity and it operates in rental facilities.

The next step of further development will be the start of operations of the new factory in Gorelovo in the end of 2008, which will allow Pit-Product to double the capacity. The investments in construction of the new factory and logistic centre in St. Petersburg will be approximately EUR 70 million.

Since 2005 Pit-Product Ltd. is a part of Atria Group Plc, and obtains the leading position among meat processing companies in St. Petersburg area. Pit-Products market share is 25%. Company's turnover was EUR 74 million year 2006. During the year 2006 Pit-Product's market share increased 5 percentageunits (source: ACNielsen, January 2007). During Jan-Feb 2007 the sales and profit have developed positively.

Further information
Mr Juha Ruohola, Director, Atria
Russia and Baltic, tel. +358 400 647160.

www.atria.fi


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