STROMSDAL CORPORATION STOCK EXCHANGE RELEASE 27 November 2008 at 14.05 (Finnish time) STROMSDAL CORPORATION'S LETTER OF INTENT REGARDING A MAJOR CORPORATE AND FINANCIAL RESTRUCTURING HAS FAILED AND THE BOARD OF DIRECTORS HAS DECIDED TO FILE FOR BANKRUPTCY Stromsdal has this morning received information from Primaca Partners Oy that the EUR 5 million equity injection which was a part of the signed and published Letter of Intent (LOI), dated October 30, 2008, has failed dispate continues negotiations, due to the tight financial market situation. While the LOI required that all parts of the LOI to be fulfilled and this is not now happening, then there are no chance for the corporate and financial restructuring to take place. The sudden standstill of the world economy and the tightening of the financial market have weakened the order intake. Recently published negative economic indicators and dispite raw material prices coming down, the best estimate is, that the company operative cash flow will not turn positive this year. The company has also today received information from its main financiers that they are not willing to input any more money. The company has also explored other financing possibilities, but without success. Taking the above circumstancies into account the Board of Directors has in its meeting today decided on behalf of Stromsdal Corporation to file for bankruptcy in the city court. “We are very sorry that the world economy crisis and the itnernational finance crisis distroyed our last years' huge financial and labour inputs done for Stromsdal and developing its excellent packaging products, mill productivity and sale improvements. We are especially sorry for the employees and their families, City of Juankoski, customers, shareholders and financiers and other stakeholders, but in the end there were no other options. We thank all those who have supported our business during all these years.”, declares Company Management and the Board of Directors. STROMSDAL CORPORATION Board of Directors For further information, please contact: Harry Salonaho, Chairman of the Board of Directors 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.fi
STROMSDAL'S LETTER OF INTENT REG. A MAJOR CORP. FINANCIAL RESTRUCTURING FAILED AND THE BOARD OF DIRECTORS DECIDED TO FILE FOR BANKRUPTCY
| Source: Stromsdal