HONKARAKENNE LAUNCHES AN EXTENSIVE PROGRAMME TO BOOST EARNINGS, DELIVERY VOLUMES HAVE GROWN


HONKARAKENNE OYJ Stock Exchange Release 11 January 2010 at 11:00 hours          

HONKARAKENNE LAUNCHES AN EXTENSIVE PROGRAMME TO BOOST EARNINGS, DELIVERY VOLUMES
HAVE GROWN                                                                      

Honkarakenne Oyj is launching an extensive programme to boost earnings, with the
aim of securing a positive result in 2010. The full impact of the programme will
be apparent from 2011. It is anticipated that around three quarters of the      
improved result will be attributable to savings made in fixed and variable costs
in the different business areas and the rest will be achieved through           
streamlining corporate structures in 2010. The improvement programme will target
cost items amounting to around 8 million euros.                                 

Most of the improvement measures targeting the business areas should be         
completed in 2010, and the effects are expected to improve the result this year 
by around 5 million euros. The non-recurring cost items involved in the         
programme, which will be recorded in the current year's accounts, may be        
significant.                                                                    

"Developing the company's operational effectiveness is a key factor in securing 
its long-term success. Developing sales and marketing processes, improving the  
network of importers and distributors and developing the design and architecture
of company's products will also be the focus of attention. Honkarakenne will    
focus on premium segments in selected markets and further develop its           
customer-oriented service model”, says CEO of Honkarakenne Oyj, Esa Rautalinko. 

It is estimated that the recession, which has had a particularly detrimental    
effect on the construction sector, bottomed out during autumn 2009. The last    
quarter of 2009 saw an increase of 22% on the corresponding 2008 figure in      
Honkarakenne's euro-denominated orderbook for the New Year. The orderbook for   
the first quarter of the current year is 10% down on last year's corresponding  
period. However, the orderbook for the second quarter of the current year is 57%
higher than the previous year's figure. The aggregate growth in the orderbook   
for the first two quarters of the year is 13%. Despite the positive development 
in orders, the markets remain volatile, and it is difficult to predict the real 
achieved sales in the respective quarters.                                      

Competition in the sector remains fierce, and Honkarakenne will be initiating   
codetermination negotiations for all its Finnish personnel, in order to improve 
operational efficiency. The negotiations may lead to lay-offs and dismissals. On
31 December 2009, the company's Finnish employees numbered 305. Lay-offs lasting
no more than six weeks have been agreed for the period 1.1.-31.3.2010.          

HONKARAKENNE OYJ                                                                
Board of Directors                                                              

Additional information: President and CEO Esa Rautalinko, tel. +358             
(0)400 740 997                                                                  
esa.rautalinko@honka.com.                                                       

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