KESKO CORPORATION STOCK EXCHANGE RELEASE 09.05.2001 AT 08.00 1(17)

KESKO´S INTERIM REPORT 1.1.-31.3.2001

Kesko Group´s net sales for the period from 1 January to 31 March 2001 amounted to EUR 1,432 million, which is 1.6 percent less than in the corresponding period of the year 2000 (EUR 1,455 million). The Group´s profit before extraordinary items in January-March was EUR 0.7 million (EUR 14.8 million). Earnings per share were EUR 0.01 (EUR 0.12). Equity per share was EUR 15.31 (EUR 15.89). The information is unaudited.

Market review

According to advance information, the volume of Finnish wholesale sales excluding the car trade increased by 5.9 percent compared with the previous year. The corresponding increase in retail sales was 5.1 percent. The trade in the car sector decreased by 9.5 percent.

The year 2001 is expected to be the eighth successive year of growth for the trading sector. An inquiry made by the Federation of Finnish Commerce and Trade shows that wholesale sales excluding the car trade will grow by 5.5 percent and retail sales by 4.0 percent.

Consumer prices are forecast to increase by about two percent in 2001. In March 2001, the annual change in consumer prices was 2.9 percent. In 2001, private consumption is expected to grow by 3.8 percent and private investments by 7.5 percent.

Economic growth continued favourably in the Baltic countries at the beginning of the year. Gross domestic products are expected to increase by 4-6 percent during the first three months of the year. Stores operating in chains are increasing their share of overall retail sales in all of these countries. In , chains already account for more than 25 percent of all grocery sales. The value of the total grocery market is forecast to increase to nearly EUR 4.5 billion during 2001.

In Sweden, the construction market is forecast to grow by about 5 percent in 2001, and private consumption by about 2.5 percent. The volume of house production will continue to increase strongly despite slightly slower growth than in 2000.

Net sales

Kesko Group´s net sales for the period from 1 January to 31 March 2001 were EUR 1,432 million, which is 1.6 percent less 2 than in the previous year (EUR 1,455 million). As part of the chain reform Kesko lowered its wholesale prices to the K- retailers from the beginning of 2001. The effect of the new pricing system on net sales is estimated to be two percentage points.

Net sales by division 1-3/2001 1-3/2000 Change

EUR million EUR million % Kesko Food 758 794 -4.5 Rautakesko 172 163 5.6 Keswell 154 164 -6.1 Kesko Agriculture and Machinery 162 143 13.6 VV-Auto 130 150 -13.8 Kaukomarkkinat 73 66 9.6 Other units - eliminations -17 -25 Group total 1,432 1,455 -1.6

Performance

The Group´s profit before extraordinary items decreased, as forecast, and was EUR 0.7 million (EUR 14.8 million), which was 0.1 percent of net sales (1.0%). The Group´s operating profit was EUR -0.4 million (EUR 11.9 million). The operating profit includes gains and losses from sales of fixed assets totalling EUR 0.4 million (EUR 1.3 million). In addition to the weak sales development, the initiation and conversion costs arising from the on-going reform of the store network affected the Group´s decreased operating profit. The chain reform has been supported by additional investments. Pension costs are EUR 6.0 million higher than during the comparison period, when income from investments by the Kesko Pension Fund decreased the pension costs. The parent company's operating profit was EUR 7.8 million lower than in the comparison period.

The Group´s net financial income was EUR 1.1 million (EUR 2.9 million). The change resulted from increased net debt.

Earnings per share were EUR 0.01 (EUR 0.12). Equity per share was EUR 15.31 (EUR 15.89).

Operating profit by division

1-3/2001 1-3/2000 EUR EUR million million 3

Kesko Food -4.2 -1.2 Rautakesko -1.8 0.2 Keswell -11.9 -10.9 Kesko Agriculture and 1.7 1.9 Machinery VV-Auto 5.5 7.5 Kaukomarkkinat 1.5 0.4 Common operations 8.8 14.0 Group’s operating profit/loss -0.4 11.9 Net financial income 1.0 2.8 Associated companies 0.1 0.1 Profit before extraordinary 0.7 14.8 items

The practice used to disclose the operating profit of the various divisions has been changed. The rents charged by the real estate function for the real estate used by the Group have been disclosed as rent expenses of other divisions. The operating income from common operations includes the operating profit of real estate. Common operations also include the net expenses or income of other units’ common operations, as well as Group items such as company management expenses and amortisation of goodwill on consolidation that has not been allocated to the divisions.

*) The figures for 2000 have been converted to comparable ones to correspond to the changed practice.

Investments

The Group´s investments totalled EUR 47.9 million (EUR 101.2 million), which is 3.3 percent (7.1%) of net sales. Investments in the real estate, information technology and fixtures of Kesko’s wholesale operations and subsidiaries amounted to EUR 12.4 million, while investments in the buildings, fixtures and information technology of the retail stores totalled EUR 35.5 million. More detailed information on investment projects is given in the reviews of the divisions.

Finance

Cash flow from operating activities was EUR -51.1 million and from investing activities EUR -31.8 million. At the end of the review period, the equity ratio was 55.4 percent (57.7%). The interest-bearing net debt was EUR 264.5 million (EUR 79.0 million). The liquid assets totalled EUR 30.5 million (EUR 158.3 million).

Group administration and structure

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The new Articles of Association approved by Kesko´s Extraordinary General Meeting held on 30 October 2000 were entered in the Trade Register on 1 January 2001. The entry into force of the new Articles of Association also started the term of the Board members elected by the Extraordinary General Meeting. Their term will expire at the close of the Annual General Meeting in 2003.

Kesko’s Board of Directors elected Matti Kallio as its Chairman and Keijo Suila as its Deputy Chairman at the Board meeting held on 3 January 2001. Other Board members are Kesko’s President and CEO Matti Honkala, B.S. (Econ.); Eero Kasanen, Dr.Sc. (Econ.); Maarit Näkyvä, M.Sc. (Econ.); Kalevi Sivonen, retailer; Heikki Takamäki, retailer; and Jukka Toivakka, retailer.

On 1 January 2001, a Corporate Management Board was established in the Kesko Group. Its members represent the company’s operating management. President and CEO Matti Honkala acts as the Board’s Chairman, and the other members appointed are Kalervo Haapaniemi, Matti Halmesmäki, Erkki Heikkinen, Juhani Järvi, Matti Laamanen, Riitta Laitasalo and Jouko Tuunainen.

Acting in accordance with a previously decided plan, Kesko Corporation transferred its foods and home and speciality goods businesses to its wholly-owned subsidiaries, Kesko Food Ltd and Keswell Ltd respectively, on 1 April 2001. Kalervo Haapaniemi was appointed President of Kesko Food, responsible for the foods trade, and Matti Laamanen the President of Keswell Ltd, responsible for the home and speciality goods trade.

It is planned that two new subsidiaries, responsible for the hardware and builders’ supplies trade and the agricultural and machinery trade, will be formed on 1 October 2001.

Personnel

The Group’s average number of employees in the review period was 10,928 (10,543), divided by division as follows:

average average 1-3/2001 1-3/2000 31.3.2001 Kesko Food 4,887 4,672 6,293 Rautakesko 1,173 688 1,295 Keswell 2,453 2,749 3,202 Kesko Agriculture and 668 627 718 Machinery VV-Auto 110 103 113 Kaukomarkkinat 841 757 875 Others 796 947 860 Total 10,928 10,543 13,356 5

(The comparable figures have been adjusted to correspond with the new organisation. In calculating the average number of employees, part-time employees have been converted to full-time employees in relation to their working hours.)

The total number of Kesko Group employees has increased slightly. The number was increased by the expansion of Kesko Food’s and Rautakesko’s operations in Estonia and those of Rautakesko in Sweden. On the other hand, the number was decreased by the outsourcing of service and support activities in line with strategy. The Group employed 1,156 persons (523) abroad.

Development of divisions

Kesko Food Kesko Food´s net sales were EUR 758 million, a decrease of 4.5 percent. Revised pricing and charging practices related to the chain reform has had an effect of about four percentage points on Kesko Food´s net sales. The operating loss was EUR 4.2 million, compared with the operating loss of EUR 1.2 million in the corresponding period of 2000. The main reasons for the increased loss during the first three months of the year are the costs of starting up the new chain operations and investments in the store network. The investments totalled EUR 11.5 million. Kesko Food Ltd started operating as an independent company on 1 April 2001.

The transfer to a pricing system and payment structure based on the new chain operating system on 1 January 2001 has significantly affected the development of Kesko Food´s net sales. In the first quarter of the year, total grocery sales increased by about 4-5 percent in . The opening hours of stores with a floor area of below 400 square metres were extended at the end of January, which, together with Sunday openings, stimulated sales. On the other hand, this change slightly diminished the sales of kiosks, service stations and large outlets.

The sales of the Estonian units developed better than Kesko Food´s other units. The operating loss of Citymarket Oy, which carries on the non-food trade in the Citymarket hypermarkets, increased from the previous year and was EUR 6.7 million (EUR 5.6 million).

During the first three months of the year, five new K-grocery stores were opened: a Citymarket in Kuusamo, a K-superstore in 6

Oulu, a K-supermarket in and two new Pikkolo stores in . The Pikkolo stores are new urban convenience stores that also focus on takeaway products. There are now five pilot stores operating. The aim is to build a chain of about 100 stores within the next few years. The extension of the Salo Citymarket will be completed in the spring. The major stores under construction that are due to be opened this year are Citymarkets in Espoo and Forssa, and K-superstores in Oulainen, Oulu and Ulvila.

The expansion of Kesko Food´s operations in the Baltic countries is progressing according to plan. A new logistics centre of 15,000 square metres started operations in Estonia in January. The total investment amounted to about EUR 8.3 million. At the same time, a new system for controlling operations, SAP, was introduced. In Estonia, a new SuperNetto store was opened in Tartu on 4 May 2001, and a new store will be opened in Pärnu in the autumn. The first SuperNetto store in has reached the "topping-out" phase and it will be opened in in September 2001. Kesko’s target in the Baltic countries is to gain a share of about 20-25 percent of their total grocery market, which is about EUR 4.0 billion.

The chain aims to increase its operations in Finland in line with strategy. At the end of March, it sold its operations in Tallinn to AS. Carrols AS had three in Tallinn. At the end of the period, Carrols had 71 restaurants and four Drop Shops in Finland.

Kespro Ltd, a company providing services to catering customers, is focusing on expanding its market for deliveries to customers. A new wholesale network, which differs from the conventional wholesale and cash & carry outlets with respect to opening hours, range of goods, Internet service and fast deliveries, will expand to in May 2001. It will replace the former cash & carry outlets in Vantaa and Ruoholahti, Helsinki. A new cash & carry outlet is also under construction in Lahti. At the end of the period, the number of cash & carry outlets was 20. Internet business will continue to be developed in 2001.

Due to the costs arising from initiating the new chain operating system and its expansion in the Baltic countries, Kesko Food´s operating profit for the whole year is forecast to fall short of the level of 2000.

Rautakesko Rautakesko´s net sales amounted to EUR 172 million, an increase of 5.6 percent. The increase was attributable to expansion in Sweden and the Baltic countries. Foreign subsidiaries already account for over 12 percent of Rautakesko´s net sales. The operating loss was EUR 1.8 million (operating profit EUR 0.2 7 million). In Sweden, K-rauta AB (former Kesko Svenska AB) continued to show a loss. Investments totalled EUR 2.8 million.

Net sales in Finland fell slightly short of target, mainly as a result of the late start to the season. A new chain operating system was adopted at the beginning of the year. At the end of the period under review, 45 stores were included in the K-rauta chain and 105 stores in the Rautia chain. The sales volumes of these chains will be at almost the same level after the reform has been implemented. A new K-rauta store is under construction in Ruoholahti, Helsinki.

The net sales of K-rauta AB in Sweden were EUR 9 million, a growth of 32 percent. K-rauta AB now has 8 K-rauta stores operating in Sweden. New K-rauta stores will be opened in Helsingborg in May and in Göteborg in the autumn.

Fanaal AS in Estonia and Fanaal A/S in Latvia, a company acquired last year, increased their sales. Kesko now has five stores in Estonia and one in Latvia. The business operations and real estate of Räni Ehituskaupa in Tartu, Estonia were acquired and a new store was built in its premises. A store in Lasnamäe, Tallinn will be extended. Construction will begin on the first K-rauta store in Riga in the summer.

Key focal areas of Rautakesko in 2001 include category management and information systems development. Internationalisation and investment in Internet operations and business-to-business operations are of particular strategic importance.

Rautakesko´s net sales are expected to increase in 2001, despite the slackening rate of construction. Growth will be sought from the Swedish and Baltic operations in particular. The operating profit is forecast to improve.

Keswell Keswell’s net sales were EUR 154 million, a decrease of 6.1 percent. Keswell´s operating loss was EUR 11.9 million. During the same period in 2000, the operating loss was EUR 10.9 million. Investments totalled EUR 7.3 million. Keswell Ltd started as an independent company on 1 April 2001.

The net sales of the Anttila Group were EUR 98 million, a decline of 0.1 percent. The online trade and mail order business developed the most favourably. The net sales of online trade quadrupled, while the mail order business grew by 34.9 percent. The sales of the Kodin Ykkönen department stores for interior decoration and home goods increased by 25.5 percent, partly due to the two new department stores opened in the previous year. The sales of the Anttila department stores were down by 7.4%. The Anttila Group´s operating loss was EUR 10.0 million, while 8 the loss during the same period in 2000 was EUR 1.2 million greater. The result was affected by the initiation costs of the three department stores opened at the end of the previous year. The result for the whole year is expected to be better than in 2000.

In the sports trade, retail sales have developed much better than in the previous year. The net sales of Kesko Sports also progressed well, increasing by 26.8 percent. The long winter had a favourable effect on the trade in winter sports goods.

Sales of home technology easily fell short of the previous year’s level. The net sales of Kesko Musta Pörssi were 16.4 percent down on the year before. The greatest reason was the drastic drop in sales of television sets. The drop is believed to be a result mainly of consumers postponing their purchases until digital TV programmes start in the autumn. On the other hand, the trade in information technology and mobile phones has advanced favourably.

The net sales of Kesko Shoes increased by 1.4 percent. Some of the K-kenkä chain’s stores were organised into a new group called Kenkäexpertti. At the end of the period under review, there were 33 stores operating in the K-kenkä chain, 28 stores in the Andiamo chain and 46 stores in the Kenkäexpertti group.

In April, after the period under review, an Intersport megastore was opened in Lappeenranta. Musta Pörssi Maailma stores will be opened in in the spring, in Oulu in the summer and in Lappeenranta towards the end of the year. Intersport megastores will be opened in Tampere and Turku during the autumn. An Intersport store and a Musta Pörssi store will be established in the shopping centre that will be completed in Forssa towards the end of the year. In addition, the premises for an Intersport store and an Andiamo store will be built in the Mylly shopping centre at Raisio that will be opened towards the end of the year. An Andiamo store will be built in the Omena shopping centre to be opened in Espoo in September.

Keswell´s result for the whole year is forecast to exceed the previous year’s level.

Kesko Agriculture and Machinery The net sales of Kesko Agriculture and Machinery were EUR 162 million, an increase of 13.6 percent, which was slightly better than expected. The operating profit was EUR 1.7 million (EUR 1.9 million). Investments totalled EUR 0.5 million.

Kesko Agriculture´s sales increased in line with expectations by 7.9 percent. The good harvest in 2000 was reflected in the sales volumes of grain. The delivery difficulties of the Zetor factory 9 are still affecting tractor sales. Kesko Agriculture will start the marketing of Deutz-Fahr tractors this year.

The overall net sales of Kesko Machinery were slightly better than expected and grew by 19.7 percent, although the total market in this sector contracted slightly. The market share of the Man lorries expanded favourably at the beginning of the year to reach 8.9 percent. Sales of Yamarin boats also continued favourably.

The agricultural and machinery business in Estonia and Latvia has progressed according to plan. A full-service agricultural and machinery store will be started in Riga, Latvia in May.

At the beginning of February, the K-agricultural store in Forssa was added to K-maatalousyhtiöt Oy´s network. K-maatalousyhtiöt Oy now has a total of 20 K-agricultural stores. There are also 90 retailer-owned stores operating in the K-agricultural chain.

The operating profit of Kesko Agriculture and Machinery for the whole year is expected to grow from the previous year.

VV-Auto The VV-Auto Group´s net sales were EUR 130 million, a decrease of 13.8 percent. The operating profit was EUR 5.5 million (EUR 7.5 million). Investments totalled EUR 0.8 million.

The overall car market in Finland dropped sharply at the beginning of the year. The number of new cars registered was 25.7 percent lower and the number of commercial vehicles 1.5 percent lower than in the corresponding period of 2000.

The cars imported by the VV-Auto Group had a 13.8 percent market share during the period under review. The market shares of Volkswagen and Seat contracted slightly, whereas Audi sales did well, thanks to the new A4 model. Concerning commercial vehicles, Volkswagen´s market share rose to 23.0 percent, making it the market leader.

The net sales of spare parts increased slightly despite the contracting market, whereas the sales of accessories decreased, resulting from the smaller sales volumes of new cars.

The VV-Auto Group´s net sales and operating profit are expected to decrease from the previous year, due to the diminished overall car market, but to remain at a good level.

Kaukomarkkinat The Kaukomarkkinat Group´s net sales were EUR 73 million, which 10 was 9.6 percent more than during the corresponding period in the previous year. The Group´s operating profit was EUR 1.5 million (EUR 0.4 million). Investments totalled EUR 0.7 million.

The increase in net sales were mostly attributable to Telko, a company acquired in the autumn of 2000. Other units that increased their net sales were Leipurien Tukku and the optical sector. The Tähti Optikko chain continued to strengthen its market share, as the Group´s optical sales grew by 10.1 percent. The global sales of telecommunication products slowed down, which was reflected in the Kauko East-West Division´s net sales.

The decreased net sales of Kauko Electronics resulted from an over 20 percent decrease in TV sales in Finland. Consumers have postponed their TV purchases due to the expectation of digital TV programmes starting in the autumn. There have also been problems with the trade in data equipment and communicators. Sales of these product groups are expected to pick up towards the end of the year.

East-West Trade, Telko and Adidas Suomi increased their operating profit the most.

The Kaukomarkkinat Group´s operating profit for the whole year is expected to exceed the level of the previous year.

Share and equities markets

Kesko Corporation’s share capital is EUR 180,426,800, with 35.2 percent of the share capital consisting of A shares and 64.8 percent of B shares.

The price of the company´s A share was EUR 16.95 at the end of 2000 and EUR 18.50 on 31 March 2001, an increase of 9.1 percent. The price of the B share was EUR 10.75 at the end of 2000 and EUR 11.48 on 31 March 2001, an increase of 6.7 percent. The HEX general index dropped during the period by 36.0 percent and the HEX portfolio index by 23.0 percent. The trading sector price index rose by 8.6 percent.

The market value of A shares was EUR 587 million and that of B shares EUR 671 million, i.e. the total market value of all shares amounted to EUR 1,258 million.

During the period under review, 0.5 million of Kesko’s A shares with a total value of EUR 9.2 million and 4.6 million B shares with a total value of EUR 51.2 million were traded on the Helsinki Exchanges.

Kesko and the euro

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According to its transition plan, Kesko will prepare its financial statements for 2001 in markkas and they will then be converted into euros by using a conversion rate. When the decisions on Kesko’s euro schedule were made, they were based largely on the premise that the majority of Kesko’s customers operate in Finland. During the transition period, the majority of Kesko’s purchases and sales will be made in markkas. The prices of stock items will remain in markkas until 31 December 2001. Based on the agreements made with customers, some invoicing has been carried out in euros right from the beginning of the transition period.

During the transition period, the transfer to the euro has been managed by a special euro committee. The necessary information system changes have been scheduled. The Group is expected to be ready well before the changes are implemented in the early autumn of 2001.

Events during the period under review

A chain operation reform affecting Kesko and about 1,450 K- retailers was introduced at the beginning of 2001. Over 98 percent of the retailers approved the new chain agreement or a customer agreement. Joint operation will be intensified throughout the entire chain - in the development of chain concepts, in category management, marketing, purchasing operations and logistics. The new chain operation will significantly strengthen Kesko´s competitiveness and the K- stores´ ability to meet customer requirements in rapidly changing markets.

A total of 34 retailers operating in various chains remained outside the chain operation. On 21 February 2001, Kesko sent a notice of termination to the 11 Citymarket retailers who did not sign the new chain agreement. After adopting the new system, Kesko cannot apply parallel systems.

On 10 April 2001, after the period under review, Kesko Corporation was served a summons by nine Citymarket retailers to whom Kesko had given notice. The Citymarket retailers primarily demanded that Kesko pay damages amounting to approx. FIM 91 million (approx. EUR 15.3 million) for serving notice, which they claim to be contrary to contract. Kesko contests all the claims presented against it on the grounds that they are unjustified and considers that it has sufficient legal grounds to serve notice to terminate the agreements. Kesko demands that the Citymarket retailers who have taken legal actions against it shall pay full compensation for court costs and other damages arising from this operation.

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On 29 January 2001, Kesko was granted an exceptional permit to fix, on certain conditions, the highest prices for some of its products offered by the K-superstores. The permit granted was more restricted and applied to a shorter period than Kesko had hoped. The exceptional permit is valid from 1 January 2001 to 31 December 2003. On 16 February 2001, the Office of Free Competition granted the same kind of permits for the products sold by the Citymarkets and K-supermarkets, and on 30 March 2001 for the products sold by the K-neighbourhood and K-extra stores. Concerning the other chains, Kesko expects to receive the decisions of the Office of Free Competition during this year. According to Kesko, the permits granted by the Office provide Kesko and the K-stores a good basis for operating in line with the new chain system.

Kesko´s logistics centre at the junction of the Tallinn ring road and the Tallinn-Tartu highway in Jüri was complemented on 20 February 2001. The logistics centre with a total floor area of 16,200 square metres represents an investment of about EUR 8.4 million. The centre employs about 100 persons. The logistics centre provides services to the entire area of Estonia. It provides local retail stores and catering customers with a full range of modern logistical services that meet EU standards. At the same time, the centre serves as a warehouse for imported groceries and supports the building of Kesko’s own retail store network in the country. The unit also offers an efficient distribution and export channel for the Estonian food industry.

On 5 March 2001, an environmental certificate was granted to Kesko Food´s logistical operations and Kesped Ltd for successfully installing an environmental system that complies with the international ISO 14001 standard. The certificate concerns the warehousing of groceries, terminal operations and transport. This certificate for an environmental management system is the first environmental award presented to a Finnish food business.

On 30 March 2001, Kesko Corporation signed an agreement to sell the majority shareholding (80%) of its IT subsidiary, Tietokesko Oy, to TietoEnator Corporation. The aim is to implement the deal so as to allow Tietokesko´s operations to continue under the new ownership structure from 1 June 2001. The target of both owners is to develop Tietokesko so that it can produce even better IT services for Kesko´s business operations.

On 30 March 2001, the Carrols chain’s Estonian subsidiary, Carrols AS, sold its restaurant operations in Tallinn to Hesburger AS. Carrols AS had three restaurants in Tallinn. Carrols will focus on growth in the Finnish market. In Finland, the number of the Carrols restaurants will grow to 100 within a few years, from the present number of 71 restaurants. 13

On 9 April 2001, Kesko Corporation´s Annual General Meeting adopted the financial statements for 2000, discharged those accountable from any liability, and decided to pay a dividend of EUR 1.00 per share. According to the Board of Directors’ proposal, the second paragraph of article 11 of the Articles of Association was amended to read as follows: To have the right to attend a General Meeting, shareholders shall register with the company not later than on the date stated in the announcement of the meeting, which date may not be earlier than (10) days prior to the meeting.

On 4 May 2001, after the period under review, Kesko published its first report on corporate responsibility. It is based on the recommendations of the international Global Reporting Initiative organisation.

Future outlook

According to the forecasts of the Research Institute of the Finnish Economy, private consumption will increase by almost four percent in Finland this year. Economic and consumer forecasts for future development continue to be optimistic. Together, they provide good operating conditions for domestic trading. Kesko Group’s net sales are expected to grow by about two percent in 2001, while the Group´s operating profit, excluding non-recurring items, is expected to fall short of the previous year’s level.

The ongoing chain reform will provide better conditions for Kesko to increase its net sales and to improve its profitability. This year, Kesko´s net sales are decreased by net pricing, an essential part of the chain operations, which lowers wholesale prices and decreases the Group’s net sales by about two percentage points.

Helsinki, 9 May 2001 Kesko Board of Directors

Further information: Executive Vice President and CFO Juhani Järvi, telephone +358 1053 22209 and Vice President Paavo Rönkkö, telephone +358 1053 22569.

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KESKO CORPORATION Corporate Communications

Erkki Heikkinen Senior Vice President

ATTACHMENTS Group´s net sales by division Income statement and balance sheet Contingent liabilities

Kesko Corporation´s interim report for the first six months of 2001 will be published on 8 August 2001 at 8.00, and for the first nine months on 14 November 2001 at 8.00. In addition, Kesko Group´s sales figures are published each month. Releases and other information are available on Kesko’s Internet pages at Investor information, www.kesko.fi

DISTRIBUTION HEX Helsinki Exchanges Main news media

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TABLES:

Group’s net sales by division EUR million Change, % Kesko Food Neighbourhood Chain Unit 237 -6.2 Supermarket Chain Unit 257 -3.4 Citymarket Oy 76 2.0 Kespro Ltd 166 -5.6 Kesko Eesti AS 9 72.5 Carrols 6 -10.6 Other subsidiaries 6 -11.9 ./. eliminations 1 Total 758 -4.5

Rautakesko Rautakesko 113 -2.3 Industrial and Constructor Sales 36 -4.7 K-rauta AB 9 32.3 AS Fanaal Estonia 7 - A/S Fanaal Latvia 3 - Other subsidiaries 1 -63.1 ./. eliminations 3 Total 172 5.6

Keswell Anttila Group 98 -0.1 Kesko Sports 28 26.8 Kesko Musta Pörssi 16 -16.4 Kesko Shoes 8 1.4 Other subsidiaries 4 -17.5 ./. eliminations 0 Total 154 -6.1

Kesko Agriculture and Machinery Kesko Agriculture 116 7.9 Kesko Machinery 38 19.7 K-maatalousyhtiöt Oy 32 25.1 Kesko Agro Eesti AS 3 - SIA Kesko Agro 3 - ./. eliminations -30 Total 162 13.6

VV-Auto Group 130 -13.8 Kaukomarkkinat Group 73 9.6

Other subsidiaries – eliminations -17 -

GROUP TOTAL 1,432 -1.6

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Consolidated income statement (MEUR) 1-3/2001 1-3/2000 Change, % 1-12/2000 Net sales 1,432 1,455 -1.6 6,308 Other operating income 84 66 27.6 336 Materials and services -1,261 -1,284 -1.8 -5,553 Personnel expenses -85 -74 14.3 -316 Depreciation and value adjustments -26 -26 1.9 -119 Other operating expenses -144 -125 15.3 -540 Share of associated companies’ profit (loss) 0 0 5.4 1 Operating profit -0 12 -103.3 117 Financial income and expenses 1 3 -60.3 9 Profit before extraordinary items 1 15 -94.9 126 Extraordinary income Extraordinary expenses Profit before taxes 1 15 -94.9 126 Income taxes 0 -4 -94.9 -34 Minority interest 0 0 35.6 -1 Profit 1 11 -94.2 91

Consolidated balance sheet (MEUR) 1-3/2001 1-3/2000 Change, % 1-12/2000 Assets Non-current assets Intangible assets 147 131 11.8 149 Tangible assets 891 895 -0.4 883 Investments 157 154 1.4 153 Current assets Stocks 567 500 13.3 536 Receivables Long-term 91 89 2.2 92 Short-term 645 593 8.9 680 Marketable securities 8 136 -94.0 30 Cash on hand and at bank 22 23 -2.3 47 Total 2,528 2,521 0.3 2,570

Liabilities Shareholders’ equity Share capital 180 180 180 Other shareholders’ equity 1,201 1,254 -4.2 1,200 Minority interest 15 16 -4.4 16 Provisions 11 15 -29.0 12 Liabilities Deferred tax liability 59 69 -13.2 61 Non-current debt 71 58 22.5 64 Current debt 991 929 6.6 1,037 Total 2,528 2,521 0.3 2,570

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Operating profit of divisions 1-3/2001 1-3/2000 4-6/2000 7-9/2000 9-12/2000 2000 Kesko Food -4.2 -1.2 10.7 15.9 15.6 41.0 Rautakesko -1.8 0.2 3.4 6.5 -3.7 6.4 Keswell -11.9 -10.9 -2.0 -2.4 7.5 -7.8 Kesko Agriculture and 1.7 1.9 5.7 -0.2 -2.9 4.5 Machinery VV-Auto 5.5 7.5 5.3 3.2 1.8 17.8 Kaukomarkkinat 1.5 0.4 -0.4 3.8 0.7 4.5 Common operations 8.8 14.0 11.2 8.2 16.9 50.3 Operating profit -0.4 11.9 33.9 35.0 35.9 116.7

Group key indicators 3/2001 3/2000 Change, % 12/2000 Earnings/share, EUR 0.01 0.12 -94.9 1.00 Equity/share, EUR 15.31 15.89 -3.7 15.31 Return on invested capital, % 1.3 4.1 -66.1 8.5 Return on invested capital, %, moving 12 months 7.9 - 8.5 Return on equity, % 0.2 2.9 6.4 Return on equity, %, moving 12 months 5.7 - 6.4 Equity ratio, % 55.4 57.7 -4.3 54.7

Investments, EUR million 47.9 101.2 -39.2 246.9 Personnel, average 10,928 10,543 3.4 11,099

Group contingent liabilities (MEUR) 3/2001 3/2000 Change,% 12/2000

For own debt 161 148 15.5 176 For associated companies 1 1 0.0 For shareholders 1 1 0.0 1 For others 2 3 -19.3 2 Leasing liabilities 21 16 31.0 23

Liabilities arising from derivative instruments Market value Value of underlying instruments 3/2001 3/2000 31.3.2001 12/2000 31.12. Interest rate derivatives Forward and future contracts 6 2 0 4 Option agreements Bought Written Interest rate swaps 8 0 Currency derivatives 18

Forward and future contracts 58 49 1 57 Option agreements Bought 6 4 0 10 Written 1 0 1 Currency swaps Equities derivatives Forward and future contracts Option agreements Bought 0 2 0 2 Written 0 2 0

The figures are unaudited. The figures for 2000 have been converted to comparable ones. The figures in this report are based on markka-denominated bookkeeping and accounting, and the euro-denominated figures have been calculated by using the conversion rate 5.94573. The Finnish interim report with markka figures is available from Kesko Corporate Communications.