Preliminary Results

26th March 2009
                                     POWERFLUTE OYJ
                            PRELIMINARY RESULTS ANNOUNCEMENT
                           for the year ended 31 December 2008

Powerflute Oyj (the "Company" or “Powerflute”), the packaging group with
established positions in Nordic semi-chemical fluting and coated woodfree
papers, today announced results for the year ended 31 December, 2008.
Powerflute is listed on the AIM market of the London Stock Exchange (Ticker:
POWR) and on the First North list, the alternative market of the OMX Nordic
Exchange Stockholm AB (Ticker POW1V) 

Financial highlights

•  Net sales at € 108.0m (2007 - € 115.7m)
•  Underlying EBITDA € 12.8m (2007 - € 20.4m)
•  Operating profit € 6.0m (2007 - € 12.4m) 
•  Basic EPS 2.8 cents (2007 - 8.0 cents)
•  Net assets € 25.8m (2007 - € 17.2m)
•  Net debt € 41.6m (2007 - € 25.6m)

Operating highlights

•  Acquisition of Papierfabrik Scheufelen, a manufacturer of coated woodfree
papers, successfully completed 
•  Major investment in new headbox at Savon Sellu
•  Establishment of Harvestia enhancing security and continuity of wood supply
to Savon Sellu 
•  Management team strengthened with the appointment of David Walton as CFO

The Group will announce its Interim Results for the period ending 30th June
2009 on or about 5th August 2009. 

Powerflute Chairman, Dermot Smurfit commented:

“Despite the unprecedented changes to the economic environment and the
challenging market conditions we encountered, 2008 was a transformational year
for Powerflute. It culminated in the exciting acquisition of Scheufelen, a
manufacturer of coated wooodfree papers, which has both diversified the Group's
operating activities and has the potential to be significantly earnings
enhancing and to create value for our shareholders. With the acquisition of
Scheufelen, the Group has doubled in size from a volume perspective and more
than trebled its potential annual sales. Since the start of 2009, market
conditions have continued to be very challenging. However, we are confident
that we remain well placed to benefit from recovery. 
 
Contacts
For additional information please contact:

Powerflute OYJ
Dermot Smurfit (Chairman)
Don Coates (Chief Executive Officer)		
c/o Billy Clegg, Financial Dynamics
+44 (0)20 7269 7157

Collins Stewart Europe Ltd:
Piers Coombs		
+44 (0)20 7523 8319

E.Öhman J:or Fondkommission AB:
Ms Arja Väyrynen		
+358 9 8866 6029

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

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

About Powerflute

Powerflute Oyj (“the Company” or “Powerflute”) is a packaging group with
established positions in Nordic semi-chemical fluting and coated woodfree
papers. 

Through its subsidiary Savon Sellu Oy, the Group operates a paper mill in
Kuopio, Finland which produces a specialised form of semi-chemical fluting made
from birchwood sourced principally in Finland and Russia. Corrugated boxes
manufactured using Nordic semi-chemical fluting demonstrate exceptional
strength and moisture resistance and are extensively used for transportation of
fruit and vegetables, high-value industrial goods such as electrical appliances
and automotive components. The Kuopio mill has the capacity to produce up to
300,000 tonnes per annum and is one of three suppliers of Nordic semi-chemical
fluting in Europe. 

Through its recently acquired subsidiary Papierfabrik Scheufelen, the Group
operates a paper mill in Lenningen, Germany which produces a range of coated
woodfree papers from mixed hardwood and softwood pulps. Coated woodfree papers
are used in the production of printed promotional material such as brochures,
leaflets and other point of sale materials for producers and distributors of
premium branded goods. The Lenningen mill has the capacity to produce up to
300,000 tonnes per annum and supplies the majority of its products into the
European market where total demand has historically been in excess of 7.7
million tonnes per annum. 

Powerflute is a public company and its shares are traded on the AIM market of
the London Stock Exchange and on First North, the alternative market of the OMX
Nordic Exchange Stockholm AB. For further information, please visit
www.powerflute.com 

Forward Looking Statements

Some statements in this announcement are forward-looking. They represent
expectations for Powerflute's business, and involve risks and uncertainties.
These forward-looking statements are based on current expectations and
projections about future events. The Company believes that current expectations
and assumptions with respect to these forward-looking statements are
reasonable. However, because they involve known and unknown risks,
uncertainties and other factors, which are in some cases beyond the Company's
control, actual results or performance may differ materially from those
expressed or implied by such forward-looking statements.