THE STOCKMANN GROUP'S NEW LONG-TERM FINANCIAL TARGETS

STOCKMANN plc STOCK EXCHANGE RELEASE June 15, 2005, at 16.30

THE STOCKMANN GROUP'S NEW LONG-TERM FINANCIAL TARGETS

In its strategy meeting held today, June 15, 2005, the Stockmann Group's Board of Directors confirmed the Group's new financial targets up to 2010. The objective is for the Group's return on capital employed to reach 20 per cent in 2010, with an operating profit margin of at least 8 per cent. The target for Group sales is to outpace the market. The equity ratio target has been set at a level of at least 50 per cent. The dividend policy will remain unchanged, the target being to pay dividends of at least 50 per cent of the profit on ordinary operations, nevertheless taking into account the financing required to grow the business.

According to the Board's estimate, this year the Group will achieve the long-term financial targets that were set in 2001: a 15 per cent return on capital employed and an operating profit margin of at least 5 per cent.

STOCKMANN plc

Hannu Penttilä CEO

DISTRIBUTION Helsinki Exchanges Principal media