16 April 2008 POWERFLUTE OYJ Annual General Meeting of Powerflute Oyj: dividend of EUR 3.366 cents per share and other matters relating to the annual general meeting and withholding tax position for shareholders The Annual General Meeting of Powerflute Oyj (the “Company”) yesterday evening approved the Company's income statement and balance sheet for the financial period ended 31 December 2007 as presented by the Board of Directors. In addition, at the Annual General Meeting, all of the proposals by the Board of Directors to the General Meeting were passed thereby authorising the Board of Directors to resolve on the repurchase of the Company's own shares, the issue of new shares and the conveyance of treasury shares, as well as the payment of an interim dividend if appropriate. Dermot Smurfit was re-elected as Chairman of the Board of Directors and all of the current Board Members (Don Coates, Ian Halliday, Christopher Knight, Juha Niemelä and William Anthony Smith) were re-elected. The term of office of Board members lasts until the end of the Annual General Meeting in 2009. The Annual General Meeting resolved that the remuneration of the Board Members be as follows: EUR 100,000 per annum for the Chairman, and EUR 50,000 per annum for the other Board Members. Ernst & Young Oy were re-elected to act as auditors of the Company until the end of the Annual General Meeting in 2009. Dividend The Annual General Meeting resolved that a dividend of EUR 0.03366 (i.e. 3.366 cents) per share be paid in respect of the financial year ended 31 December, 2007. The dividend will be paid to shareholders who have been entered as shareholders in the Company's shareholders' register maintained by the Finnish Central Securities Depository Ltd or as holders of depositary interests in the register maintained by Capita Registrars Ltd. by the dividend record date on 18 April, 2008. The dividend will be paid on or about 6 May 2008. As stated in the Company's Annual Report and Accounts 2007, for dividends paid by a Finnish company to a non-resident shareholder, an applicable withholding tax, if any, shall be withheld in connection with the payment of the dividend. The general withholding tax for nominee-registered shares in Finland is in principle 28 per cent. The withholding tax may be reduced or removed based on the treaties for the elimination of double taxation. Additionally, under Finnish law no withholding tax will be levied on dividends paid to corporate entities that reside in the European Union (as defined in Article 2 of the Directive 90/435/EEC) and directly hold at least 15 per cent of the capital of the distributing company (this threshold will be reduced to 10 per cent in 2009). A withholding tax at a rate of 15 per cent or higher as required by a relevant tax treaty would be collected from the dividend paid on shares that are nominee-registered, provided that, pursuant to the information duly ascertained by the payer, the recipient qualifies under the tax treaty between Finland and the relevant country applicable to the dividend. The recipient of the dividend may, for a limited period well in advance of the payment, provide the payer with an explanation of his/her/its domicile and the fulfilment of the other requirements for the application of the tax treaty, in which case he/she/it may receive the dividend payable on the nominee-registered shares at a lower tax rate pursuant to the applicable tax treaty. For those nominee-registered shareholders (such as the holders of DIs) that have not, prior to the payment, provided the payer with the necessary information regarding their tax treaty position and qualify for a more advantageous withholding tax rate (such as 15 per cent or nil per cent.) according to a relevant tax treaty and wish to claim for refund of excess Finnish withholding tax, it is possible to claim the overpaid withholding tax both during the dividend payment year and after this. According to the applicable stipulations, during the dividend payment year only the payer of the dividend (i.e. Nordea Bank Finland) is able to reclaim back the overpaid withholding tax. If it is intended that the payer of the dividend claims for a refund of excess Finnish withholding tax, the following information regarding the dividend recipient should be disclosed to the payer of the dividend name, address in country of residence and date of birth or another identification number. Additionally, the dividend recipient should assure that a relevant tax treaty is applicable to him/her/it. After the year of the dividend payment, the recipient of the payment can personally turn to the Finnish tax authorities and ask for a refund of Finnish withholding tax by using a form provided by the Finnish Tax Administration. www.powerflute.com For further information, please contact: Powerflute Oyj Dermot Smurfit (Chairman) c/o Billy Clegg Don Coates (Chief Executive Officer) +44 (0)20 7269 7157 Collins Stewart Europe Limited Nick Ellis/Helen Goldsmith +44 (0)20 7523 8350
Annual General Meeting
| Source: Powerflute Oyj