STROMSDAL CORPORATION STOCK EXCHANGE RELEASE 30 October 2008 at 13.30 (Finnish time) STROMSDAL CORPORATION RECEIVED EUR 2 MILLION IN ADDITIONAL FINANCING, SIGNED A SIGNIFICANT SUPPLY AGREEMENT AND SIGNED LETTER OF INTENT REGARDING A MAJOR CORPRORATE AND FINANCING RESTRUCTURING Negotiations about corporate and financial arrangements published on October 13, 2008 have progressed. Stromsdal Corporation has agreed with its current financiers about a EUR 2 million financing package in order to improve company's liquidity. The financing package is independent from the corporate and financing restructuring explained below. The company has signed a significant supply agreement mainly for year 2009, which is about 5 per cent of next year's volume target. The supply agreement is one of the biggest ever signed in Stromsdal's history. During the last week Stromsdal has seen a small improvement of its order book, although the market conditions are still challenging and very difficult to predict. Stromsdal Corporation has also signed a Letter of Intent with its main financiers and Primaca Partners regarding a significant corporate restructuring and a financial arrangement. If the restructuring will take place Stromsdal will enter into a new business segment, and current loans, approximately EUR 17.7 million, will be converted to equity and in addition equity is planned to be increased by EUR 5 million. The aim of the arrangement is to build in connection with Stromsdal a significant group consisting of Finnish mid-size companies. The Board of Stromsdal Corporation supports the proposal. Board's sight is that the arrangement will significantly improve the business conditions for Stromsdal and make the company and its shares more attractive as an investment object despite of the significant dilution of ownership for the current shareholders. The corporate and financing restructuring in the Letter of Intent is complex, and its execution requires all parts to be fulfilled and requires also the approval from the Extraordinary Shareholder's meeting of Stromsdal Corporation to be held later this year. The intent is to finish all the Letter of Intent arrangements by January 31, 2009. The company will inform as soon as possible about the progress of the negotiations. The company is not in a position to determine the probability of a successful corporate restructuring and to it linked the financing restructuring. STROMSDAL CORPORATION Board of Directors For further information, please contact: Harry Salonaho, Chairman of the Board Tel. +358 50 442 5305 DISTRIBUTION Helsinki Stock Exchange Major media www.stromsdal.com STROMSDAL is a forest based industry company and its board mill is located in Juankoski, Finland. Stromsdal's sales and customer service network covers more than 30 countries, mainly in Europe. For demanding printing jobs Stromsdal offers its customers premium-quality graphical boards - GraphiArt Duo and GraphiArt Pro - with excellent combination of printability, brightness and stiffness. For food-packaging Stromsdal offers its speciality environmentally friendly product - Tecta - a dispersion coated barrier board, which is 100 per cent plastic-free, bio degradable and fully recyclable. Stromsdal's shares are listed on the Small Cap segment of the Helsinki Stock Exchange (NASDAQ OMX Helsinki Ltd) under the company code STM1V. STROMSDAL CORPORATION Juankoskentie 7 A, P.O. Box 33, FI-73501 Juankoski Tel. +358 20 710 9200, Fax. +358 20 710 9210 www.stromsdal.com
STROMSDAL RECEIVED 2 MEUR IN ADD FINANCING, SIGNED A SIGNIFICANT SUPPLY AGREEMENT AND LOI REG A MAJOR CORP AND FINANCING RESTRUCTURING
| Source: Stromsdal