Interim Results

29 July 2009
                               POWERFLUTE OYJ
                               INTERIM REPORT
                     for the six months ended 30 June 2009

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 six months ended 30 June, 2009. 
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

• Revenue increased to €120.4m (H1 2008: €55.6m)
• Underlying EBITDA was €5.6m (H1 2008: €7.3m), including €8.0m from Scheufelen
• Operating profit was €33.9m including a gain of €34.7m on acquisition of
Scheufelen 
• Profit before tax was €31.4m (H1 2008: €3.6m profit)
• Basic EPS of 22.2 cents per share including impact of gain on acquisition of
Scheufelen 
• Underlying loss per share of 1.8 cents (H1 2008: profit 2.9 cents per share)
• Net debt increased to €50.1m (€41.6m at 31 December 2008)
• Net asset value per share was €0.40

Operating Highlights

• Papierfabrik Scheufelen (“Scheufelen”) performed in line with expectations
despite extremely challenging market conditions validating the decision to
proceed with the acquisition 
• Trading in Savon Sellu has been weak throughout the period due to volume and
price erosion and this significantly impacted the Group's results in the first
half 
• Decisive action has been taken in both businesses to manage the impact of the
economic downturn with annualised savings of €15.0m in Scheufelen and €6.0m in
Savon Sellu expected 
• Dermot Smurfit (Chairman) will continue to act as Chief Executive until a
replacement is found 
• Outlook for Scheufelen remains positive as the benefit of post-acquisition
improvement initiatives are realised, while prices and volumes at Savon Sellu
are showing some signs of stabilisation 

Powerflute Chairman, Dermot Smurfit commented:

“The Group's recent acquisition, Scheufelen the manufacturer of coated woodfree
papers, has shown extraordinary resilience in this difficult operating
environment and performed in line with our expectations. However, our Nordic
semi-chemical fluting business, Savon Sellu, suffered from very weak demand and
considerable price erosion and this significantly impacted the Group's
performance in the first half. 

“Although market conditions remain challenging, the outlook for Scheufelen
remains positive and we expect performance to continue to improve as the
benefit of post-acquisition improvement initiatives are realised. There are
early signs of a return to price stability and increasing volumes at Savon
Sellu and we expect there to be some limited improvement in performance during
the second half. 

“There will continue to be a strong focus on tight cost controls, cash
management, and operational development throughout the second half. This,
together with the strong support we enjoy from our banks, means the Group is
well positioned to withstand the challenges it currently faces and to benefit
from any market recovery.” 

Contacts
For additional information please contact:

Powerflute OYJ
Dermot Smurfit (Chairman)
David Walton (Chief Financial 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.