STOCKMANN DECLARES A 1.00 EURO BONUS DIVIDEND

STOCKMANN plc STOCK EXCHANGE RELEASE November 15, 2004, at 12.00

STOCKMANN DECLARES A 1.00 EURO BONUS DIVIDEND

Stockmann will pay a bonus dividend of EUR 1.00 per share. Hobby Hall will be developed as part of the Stockmann Group. Raija Saari, M.Sc. (Econ.), has been appointed managing director of Hobby Hall.

Stockmann's Board of Directors will propose to the extraordinary general meeting to be convened on December 8 that a bonus dividend of EUR 1.00 per share be paid for the financial year ended December 31, 2003, in addition to the EUR 1.35 (0.90 + 0.45) dividend that was paid in the spring. The total amount of the proposed dividend payout is EUR 52.8 million. The reasons cited by the Board of Directors for its proposal are the company's good earnings trend, strong financial position and high equity ratio as well as the unused tax surpluses from previous years.

In accordance with the strategy statement published previously by the Board of Directors, during the autumn the Group has looked into the alternatives for developing Hobby Hall. As a result of this exploratory work, it has been decided to continue developing Hobby Hall as part of the Stockmann Group. Hobby Hall's operations have gone through a major restructuring over the past year and the earnings on operations are expected to head upward in the latter part of the year. Divesting Hobby Hall is not, in the Board's estimation, at present a realistic alternative on satisfactory terms for Stockmann.

Raija Saari, M.Sc. (Econ.), has been appointed as Hobby Hall's new managing director and a member of the Stockmann Group's Management Committee, effective from today. Most recently, she has held the position of purchasing director with Tiimari Oyj and prior to this she has also worked as purchasing manager for the Stockmann Department Store Division's International Operations unit.

Hobby Hall's present managing director, Henri Bucht, a Stockmann Group executive vice president and the CEO's alternate, has been assigned to special duties and will resign from the company's employ on June 30, 2005. Jukka Hienonen, the Group's executive vice president and head of the Department Store Division, has been appointed the CEO's alternate, effective from today, November 15, 2004.

STOCKMANN plc

Hannu Penttilä CEO

DISTRIBUTION Helsinki Exchanges Principal media





Back