KAINUUN SANOMAIN KIRJAPAINO OY BECOMES ALMA MEDIA SUBSIDIARY

ALMA MEDIA CORP. STOCK EXCHANGE BULLETIN 10 Feb. 1999 at 1.00 pm
KAINUUN SANOMAIN KIRJAPAINO OY BECOMES ALMA MEDIA SUBSIDIARY
Alma Media Group’s holding in Kainuun Sanomain Kirjapaino Oy

exceeded 50 % on 10 February 1999. Alma Media’s newspaper

publishing division Alpress Oy has offered to acquire the

remaining shares in the company for FIM 2,250 per share. Alpress

has paid about FIM 20 million for its 50 % holding.

Alma Media Group’s newspaper publishing division Alpress Oy and

its wholly owned subsidiaries acquired a 16 % holding in Kainuun

Sanomain Kirjapaino Oy from the Kukkonen and Räihä families in

December 1998. At the same time Alpress announced its interest in

increasing its holding in the company. Since then several dozen

shareholders have offered their shares to Alpress. Alpress has

paid FIM 2,250 per share and altogether about FIM 20 million for

its 50 % holding. After amortization of goodwill Kainuun Sanomain

Kirjapaino Oy’s consolidation as an Alpress subsidiary will

slightly improve Alpress’s result for the current year.

Alpress is still interested in increasing its holding in the

company and has approached all Kainuun Sanomain Kirjapaino Oy’s

registered shareholders in writing offering to buy all the

remaining shares for FIM 2,250 per share. This offer is valid

until 12 March 1999.

The Kainuun Sanomain Kirjapaino Oy group comprises the daily

Kainuun Sanomat newspaper and Kainuun Sanomain Kirjapaino printing

works, Kuhmon Kirjapaino Oy, as well as local newspaper publishers

Kuhmon Kirjapaino Oy, Sotkamon Lehti Oy and Yläkainuun

Paikallislehti Oy. In 1998 the group recorded a profit of FIM 5

million on net sales of FIM 84 million with 167 employees. The

group’s main business units are Sanomalehti Kainuun Sanomat with

net sales of FIM 48 million and Kainuun Sanomain Kirjapaino Oy,

with net sales of FIM 24 million. Kainuun Sanomat has an audited

circulation of 24,090.

Kainuun Sanomat has served its readers and advertisers for over 80

years. Kainuun Sanomat is the most important medium of

communication in the Kainuu region today. According to Mr Heikki

Saraste, President of Alpress Oy, Alma Media wishes to invest in

newspaper publishers because it is itself a newspaper publisher.

Alma Media does not invest in newspaper publishers for short-term

gain but as a responsible long-term owner. Alma Media’s primary

objective as a major owner is to safeguard Kainuun Sanomat’s

continued position as a strong and independent local newspaper

today and in the future. The share purchase offer will have no

immediate impact on the activities or obligations of Kainuun

Sanomain Kirjapaino Oy and its subsidiaries.

ALMA MEDIA CORPORATION

Ahti Martikainen

Vice President, Corporate Communications

Distribution: HEX Helsinki Exchanges, principal media

Further information:

Mr Heikki Saraste, President, Alpress Oy, tel. +358-9-507 8768

Share article