Grant of Options

12 January 2010

                                    POWERFLUTE OYJ
                                   GRANT OF OPTIONS

Powerflute Oyj (“Powerflute” or “the Company”), which operates paper mills in
Finland and Germany, today announces that on 11 January 2010 its Board of
Directors approved the grant of options over 3,000,000 of the Company's
ordinary shares to Marco Casiraghi, who joined the Company as its Chief
Executive Officer on 1 January 2010. The options were granted under the terms
of the Powerflute Stock Option Scheme (“PSOS”) as announced on 19 November 2009
and have a subscription price of €0.33 (33 eurocents). 

In addition to the share options granted to him under the PSOS, under the terms
of his employment Mr Casiraghi has been provided with a special share-based
incentive comprising a nil-cost option over a further 2,000,000 shares whose
vesting is subject only to him continuing to be employed by the Company on 31
December 2012. 

The shareholding and total number of share options held by Mr Casiraghi
following this announcement are as follows: 

      Shareholding	                                  Options
    Number	        %	                    Number	     %
     Nil	         -	                 5,000,000         3.5%

Details of the terms and conditions and the nature of the equity incentives to
be provided to Mr Casiraghi were included in the announcements relating to the
establishment of the PSOS and his appointment as Chief Executive, both made by
the Company on 19 November 2009. 

Ends

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
Mark Dickenson 		
+44 (0)20 7523 8350

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) 663 3686

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.