CHANGES IN STOCKMANN'S VW-AUDI BUSINESS

STOCKMANN plc PRESS RELEASE June 1, 2004, at 15.30

CHANGES IN STOCKMANN'S VW-AUDI BUSINESS

The business operations of Stockmann's VW-Audi car dealership in Helsinki's Herttoniemi district will be transferred to Kesko Corporation's subsidiary VV-Auto Oy on July 1, 2004. In July, Stockmann will open Finland's first full-service Audi dealership at Suomenoja in Espoo. The Merituuli outlet nearby will concentrate on developing Stockmann's VW functions.

In line with an agreement made between Stockmann and Kesko Corporation's subsidiary VV-Auto Oy, the business operations of the VW-Audi car dealership in Herttoniemi, Helsinki, will be transferred to Helsingin VV- Auto Oy on July 1, 2004. The sales by the dealership topped EUR 100 million in 2003. The staff, amounting to 134 persons, will be taken over by the new owner.

The transaction will affect the Stockmann Group's sales estimate for 2004. The full-year sales are estimated to amount to about EUR 1.75 billion. The earnings estimates the Group presented in the Interim Report of April 23, 2004, remain unchanged. The Group's second-quarter profit on ordinary operations is anticipated to improve on the previous year's figure, and the target is for profit before extraordinary items in 2004 to be higher than the figure reported for 2003.

A new Audi car dealership to be opened at Suomenoja in Espoo

Stockmann will go on developing the VW-Audi business further in the metropolitan area. The servicing centre in the Stockmann-owned property at Martinkuja 6 in Espoo's Suomenoja has been enlarged and converted into Finland's first full-service Audi car dealership that has been designed in accordance with the recommendations of the Audi manufacturer. Serving the metropolitan area and its surroundings, the dealership grants excellent opportunities for increasing the Audi sales and developing Stockmann's VW functions at the outlet in the Merituuli shopping centre nearby. The annual sales by the new Audi car dealership are estimated to top EUR 30 million. The dealership will have a staff of 25 people, and its director will be Mr Harri Buddas.

STOCKMANN plc

Hannu Penttilä CEO

DISTRIBUTION Helsinki Exchanges Principal media





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