Appointment of Chief Financial Officer

8 January 2009	
                                   POWERFLUTE OYJ
                       APPOINTMENT OF CHIEF FINANCIAL OFFICER

Powerflute Oyj (“Powerflute” or “the Group”) which operates paper mills in
Kuopio, Finland and Lenningen, Germany is pleased to announce the appointment
of David Andrew Walton, 43, as its Chief Financial Officer with immediate
effect. 

David brings considerable relevant experience to the Group. He has previously
held senior operational and financial roles, including main board positions, in
a number of international public companies and has worked in the UK, the US and
Europe. Most recently, he was the Chief Executive of API Group plc, a
manufacturer of packaging materials for premium branded goods, and a company
which he initially joined as Finance Director in 2001. He is a Chartered
Accountant and member of the ICAEW. Prior to commencing his industrial career,
he spent seven years at Ernst & Young where he gained considerable experience
of mergers, acquisitions and other transaction related activities. 

Upon his departure from the API Group plc in February 2008, David began working
with Powerflute on the evaluation of development opportunities and played an
important role in the Group's recent acquisition of Papierfabrik Scheufelen in
Germany. 

In accordance with the requirements of Finnish company law and the Group's
Articles of Association, it is the intention of the Board of Directors to
propose David Walton's appointment as a director of Powerflute at the next
Annual General Meeting which is expected to take place in April 2009. 

Commenting on the appointment Dermot Smurfit, Powerflute's Chairman said:	

“We are very pleased to be able to announce the appointment of David Walton as
Chief Financial Officer of the recently enlarged Powerflute group of companies.
David brings with him a wealth of relevant experience and we expect him to make
a significant contribution to the future development of the Group.” 

 
The additional information required under AIM Rule 26 in connection with the
proposed appointment as a Director of Powerflute is as follows: 

David Walton holds or has held the following directorships, and is or was a
member of the following partnerships, during the past five years: 

Current directorships/partnerships	
Hamelin Limited	

Past directorships/partnerships
A.S. Holdings (UK) Limited
Advanced Coated Products Limited
API Asia Limited
API Foils Holdings Limited
API Foils Limited
API Group Plc
API Group Services Limited
API Holographics Limited
API Laminates Limited
API Overseas Holdings Limited
API Stace Limited
Arnold Belford Limited
Associated Packaging Industries Limited
Associated Paper Industries (Trustees) Limited
Data-Label Limited
Filmcast Extrusions Limited
Flytrack Limited
Label World Limited
Learoyd Group Limited
Leonard Stace Limited
Morris Plastics Limited
Netherwoord Engineering Limited
Peerless Foils Limited
Tenza Sales Limited
Tenza Technologies Limited
United Foils International (Sales) Limited

API Channel Islands
API Foils Inc.
API Foils Italia Srl
API Foils Pty Ltd.
API Foils New Zealand Ltd.
API Foils SARL
API Sales (Asia) Ltd.
API-Swanson (Kunshan) Company Limited
API (USA) Holdings Ltd.
API Wing Fat Ltd.
Chromagem Inc.
Cybernetic Industrial Corporation
Learoyd Packaging (USA) Inc.
Shanghai Shenyong Stamping Foil Co. Ltd.
Tenza Australia Pty Ltd.
Tenzab Scandinaviska Forsaljnings AB

API Channel Islands, Morris Plastics Limited and Flytrack Limited were
liquidated by means of company voluntary arrangements during the time that Mr
Walton was a director. The liquidations were undertaken as part of a broader
legal reorganisation of the API Group plc, the ultimate parent company and a
company of which Mr Walton was also a director, which took place during the
period 2001 to 2005. In each case, all liabilities were fully discharged. 

There are no further disclosures required under paragraph (g), Schedule Two of
the AIM Rules for Companies. 
                                       Ends

About Powerflute

Powerflute is a holding company and, through its wholly-owned subsidiaries
operates paper mills in Finland and Germany with total production capacity of
approximately 600,000 tonnes per annum. The mill in Finland manufactures a
specialised high quality grade of semi-chem fluting called nordic semi-chem
fluting which is made primarily from birch wood sourced from Finland and
Russia. The mill in Germany manufactures coated wood free papers. In accordance
with its strategy, the Company may in the future also acquire and manage
complementary companies or assets related to paper and packaging or other
forestry derivatives. 

For additional information please contact:

Powerflute OYJ
Dermot Smurfit (Chairman)
Don Coates (Chief Executive Officer)		
C/O Billy Clegg 
+44 (0)20 7269 7157

Collins Stewart Europe Ltd:
Mark Dickenson
Piers Coombs 
+44 (0)20 7523 8350

E.Öhman J:or Fondkommission AB:
Arja Vayrynen		
+358 (9) 8866 6021

Financial Dynamics:
Billy Clegg
Georgina Bonham		
+44 (0)20 7831 3113

K Capital Source
Mark Kenny
Jonathan Neilan
+353 (1) 631 5500