PUBLICATION OF PROSPECTUS

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL

THIS ANNOUNCEMENT IS NOT AN OFFER OF SECURITIES IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL

THIS ANNOUNCEMENT IS AN ADVERTISEMENT AND DOES NOT CONSTITUTE A PROSPECTUS OR PROSPECTUS EQUIVALENT DOCUMENT. COPIES OF THE PROSPECTUS ARE AVAILABLE FROM POWERFLUTE'S REGISTERED OFFICE AND WEBSITE: www.powerflute.com

POWERFLUTE OYJ

("Powerflute" or the "Company")

PUBLICATION OF PROSPECTUS

Further to the announcement on 20 October 2010 regarding the proposed Rights Issue and Placing to raise proceeds of approximately €19.9 million, Powerflute announces that the Finnish Financial Supervisory Authority has issued and provided to the United Kingdom Listing Authority a certificate of approval and a copy of the Prospectus relating to the Placing and Rights Issue.

Copies of the Prospectus will shortly be available to the public in the United Kingdom for inspection at the National Storage Mechanism (http://www.hemscott.com/nsm.do).

In addition, the Prospectus is available from the Company's registered office and to view on the Company's website (www.powerflute.com).

For further information, please contact:

General

This Announcement is not for release, publication or distribution in or into Australia, Canada, Japan or the United States or any other jurisdiction in which the same would be unlawful.

This Announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any securities in Australia, Canada, Japan or the United States or any other jurisdiction in which the same would be unlawful and should not be relied upon in connection with any decision to acquire any securities in the capital of the Company.

This Announcement is for information only and does not constitute an offer or invitation to acquire or dispose of any securities or investment advice in any jurisdiction.

This Announcement is an advertisement and not a prospectus and investors should not subscribe for or purchase shares (or depositary interests representing such shares) in the Company in connection with the proposed Rights Issue or Placing except on the basis of information contained in the Prospectus published today by the Company in connection with the proposed Rights Issue and Placing. Copies of the Prospectus are available from the Company's website (www.powerflute.com).

This Announcement has been issued by and is the sole responsibility of the Company. No representation or warranty express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Collins Stewart or by any of its affiliates or agents as to, or in relation to, the accuracy or completeness of this Announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

Collins Stewart, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as nominated adviser, broker and underwriter exclusively for Powerflute Oyj and for no-one else in connection with the Rights Issue and Placing and will not regard any other person (whether or not a recipient of the Prospectus) as a client in relation to the Rights Issue and Placing and will not be responsible to anyone other than Powerflute Oyj for providing the protections afforded to its clients, nor for providing advice in connection with the Rights Issue and Placing or any other matter referred to herein.