STOCKMANN SELLS STOCKMANN AUTO OY AB TO VEHO, THE VOLKSWAGEN-AUDI BUSINESS TO KESKO AND THE FORD DEA

STOCKMANN plc STOCK EXCHANGE RELEASE January 20, 2006, at 9.00

STOCKMANN SELLS STOCKMANN AUTO OY AB TO VEHO, THE VOLKSWAGEN-AUDI BUSINESS TO KESKO AND THE FORD DEALERSHIPS IN TURKU AND ESPOO TO SOK. STOCKMANN TO OFFER VEHO'S ENTIRE RANGE OF MODELS TO ITS LOYAL CUSTOMERS.

Stockmann has today, January 20, 2006, sold the entire shares outstanding in its subsidiary Stockmann Auto Oy Ab to Veho Group Oy Ab, Stockmann Auto's Volkswagen-Audi business to Kesko Corporation's subsidiary VV-Auto Oy and its retailing company Helsingin VV-Auto Oy, as well as the Ford dealerships in Turku and Espoo to Maan Auto Group, owned by SOK Corporation, for a total price of about EUR 70 million. The transactions are contingent on approval by the competition authorities. Veho will continue selling Stockmann Auto's line-up of Ford, Skoda, BMW and MINI vehicles in addition to its own previous marques. In future, Stockmann will offer its loyal customers Veho's entire range of marques and launch wide-ranging loyal customer cooperation together with Veho.

Stockmann has today, January 20, 2006, sold the entire shares outstanding in its subsidiary Stockmann Auto Oy Ab to Veho Group Oy Ab, Stockmann Auto's Volkswagen-Audi business, including its real-estate properties, to Kesko Corporation's subsidiary VV-Auto Oy and its retailing company Helsingin VV-Auto Oy, as well as the Ford dealerships in Turku and Espoo to Maan Auto Group, owned by SOK Corporation, for a total price of about EUR 70 million. Title to Stockmann Auto and the divested businesses will pass to the buyers on March 1, 2006, subject to approval of the transactions by the competition authorities. Stockmann Auto has about 680 staff, of whom about 260 will remain in the employ of the divested company, some 300 of whom will transfer to the employ of Helsingin VV-Auto under their current terms of employment and some 115 of whom will transfer to the employ of Maan Auto Group under their current terms of employment as well.

Stockmann Auto sells Ford, Skoda, Volkswagen and Audi in the Helsinki metropolitan area; Ford in Turku; Skoda and Ford in Tampere as well as BMW and MINI in Oulu. It also has a wide range of trade-in vehicles and operates versatile servicing and repair facilities. Veho is a major dealer for Citroen, Honda, Mercedes-Benz, Mitsubishi, smart and Maybach. It has a comprehensive network of car dealerships in all the localities in Finland where Stockmann has a department store. Apart from the Volkswagen and Audi, Stockmann's marques will round out Veho's product palette. For Stockmann's loyal customers, the deal means an expanded range of service and enhanced benefits because Stockmann will offer its loyal customers Veho's full range of vehicles.

Stockmann Auto has nine outlets in the Helsinki metropolitan area as well as an outlet in Turku, Tampere and Oulu. Stockmann Auto Oy Ab was formed on January 1, 2005, by incorporating the Stockmann Group's vehicle business and the properties used in its operations as an independent company. Stockmann's vehicle business had sales in 2004 of EUR 437 million, or about 25 per cent of the Stockmann Group's sales. The vehicle business generated operating profit of EUR 7.0 million and its return on capital employed was 12 per cent. Stockmann Auto's preliminary sales in 2005 amounted to EUR 414,1 million, or about 7 per cent less than sales by Stockmann's vehicle business in 2004. Stockmann Auto's operating profit for the first three quarters of 2005 was EUR 2.5 million, down EUR 4.1 million on the Stockmann Vehicle Division's operating profit in the comparative period. A major factor behind the drop in both sales and operating profit was the transfer of the Volkswagen-Audi dealership in Helsinki's Herttoniemi district to the importer as from July 1, 2004. In addition, operating profit in the comparative period included an EUR 2.3 million payment that was received on the sale of the Volkswagen-Audi dealership in Herttoniemi.

The capital gain on the sale of Stockmann Auto's shares and the businesses will improve Stockmann's first-quarter earnings. Henceforth, Stockmann will focus on its core businesses: the Department Store Division, Seppälä and Hobby Hall. The freed-up capital will be used to expand operations in Finland, Russia and the Baltic countries.

Klaus Sundström, managing director of Stockmann Auto Oy Ab and a member of the Stockmann Group's Management Committee, will oversee implementation of the company and business transactions of the vehicle business. After the transactions are completed, Mr. Sundström will take up special duties with Stockmann plc and resign from the company's employ six months after the transactions have been finalized.

Further information: Hannu Penttilä, CEO, Stockmann, tel. +358 9 121 5801 Pekka Vähähyyppä, CFO, Stockmann, tel. +358 9 121 3351

STOCKMANN plc

Hannu Penttilä CEO

DISTRIBUTION Helsinki Stock Exchange Principal media