Result of EGM

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")

EXTRAORDINARY GENERAL MEETING OF POWERFLUTE OYJ AUTHORISES ISSUE OF UP TO 145,000,00 NEW SHARES AND AMENDMENT OF COMPANY ARTICLES

The Extraordinary General Meeting of Powerflute Oyj held on 22 October 2010 resolved on all matters in accordance with the proposals of the Board of Directors and as presented in the invitation to the Extraordinary General Meeting published on 1 October 2010. 

The Extraordinary General Meeting of Powerflute approved today all of the proposals of the Board of Directors to the General Meeting and it was thereby resolved to amend Article 14 of the Articles of Association and authorise the Board of Directors to resolve on the issuance of shares and the granting of options and other special rights providing entitlement to shares resulting in the issuance of, in the aggregate, 145,000,000 new shares. The authority remains effective until 30 June 2011, unless revoked or amended before this date by a General Meeting of Shareholders. The authorisation shall not replace previous authorities granted to the Board of Directors.

POWERFLUTE

The Board of Directors

www.powerflute.com

For additional 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.

About Powerflute

Powerflute Oyj ("the Company" or "Powerflute") is a packaging group with established positions in Nordic semi-chemical fluting and coated woodfree papers.

Through its subsidiary Savon Sellu Oy, the Group operates a paper mill in Kuopio, Finland which produces a specialised form of semi-chemical fluting made from birchwood sourced principally in Finland and Russia. Corrugated boxes manufactured using Nordic semi-chemical fluting demonstrate exceptional strength and moisture resistance and are extensively used for transportation of fruit and vegetables, high-value industrial goods such as electrical appliances and automotive components. The Kuopio mill has the capacity to produce up to 300,000 tonnes per annum and is one of three suppliers of Nordic semi-chemical fluting in Europe.

Through its recently acquired subsidiary Papierfabrik Scheufelen, the Group operates a paper mill in Lenningen, Germany which produces a range of coated woodfree papers from mixed hardwood and softwood pulps. Coated woodfree papers are used in the production of printed promotional material such as brochures, leaflets and other point of sale materials for producers and distributors of premium branded goods. The Lenningen mill has the capacity to produce up to 300,000 tonnes per annum and supplies the majority of its products into the European market where total demand has historically been in excess of 7.7 million tonnes per annum.