Kesko receives a non-recurring gain of €103 million on structured property lease agreement

Kesko Corporation has waived the purchase option included in the lease agreements made with Nordisk Renting Oy in 2001 and 2002. RBS Nordisk Renting will pay Kesko a compensation of €74.2 million for the purchase option. The previous agreements were financial leasing agreements by their nature and cancelling them will generate a non-recurring income of €26.5 million. In conjunction, the lease agreements were updated to correspond with the current market situation.

Kesko Corporation has also today sold the property of K-citymarket Pieksämäki to RBS Nordisk Renting. Kesko Food Ltd has agreed to lease it under a long-term agreement and updated the lease agreement concerning eight other food store properties located in various parts of Finland.

The impact of the lease agreement arrangement and the property sale on the total operating profit of Kesko Food and Kesko Corporation for the first quarter will be €103 million, which will be treated as a non-recurring item. The arrangement will have no effect on the future outlook presented in the Kesko Group's financial statements.

Further information:
Terho Kalliokoski, President, Kesko Food Ltd, tel. +358 1053 22204
Arja Talma, Senior Vice President, CFO, Kesko Corporation, tel. +358 1053 22113

Kesko Corporation

Paavo Moilanen
Senior Vice President, Corporate Communications and Responsibility

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