AGM Statement

29 April 2014

POWERFLUTE OYJ

AGM STATEMENT

Powerflute Oyj (the "Group" or "Powerflute"), the packaging and paper group, released the following statement on current trading ahead of today's Annual General Meeting of shareholders to be held in Kuopio, Finland.

Market conditions continued to be favourable during the first quarter and the Kuopio mill performed strongly. The available capacity was fully utilised and the prices achieved were ahead of the same period of the prior year and comparable with those achieved in the seasonally much stronger fourth quarter. The first of two planned maintenance stops was completed successfully and on an underlying basis production increased by approximately 5% compared with the same period of the prior year.

The Group has made a positive start to 2014 and we remain confident of the outlook for the year. The Group continues to have a solid foundation from which to pursue development of its existing businesses and to consider further strategic investments.

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About Powerflute

Powerflute Oyj ("the Company" or "Powerflute") is a paper and packaging group quoted on the AIM market of the London Stock Exchange (Ticker: POWR). The Group operates a paper mill in Kuopio, Finland which produces a specialised form of semi-chemical fluting made from locally sourced birch. Corrugated boxes manufactured using Nordic semi-chemical fluting demonstrate superior strength and moisture resistance and are used for transportation of fruit and vegetables, high-value industrial goods such as electrical appliances and automotive components. The Kuopio mill is one of only three suppliers of Nordic semi-chemical fluting in Europe.