(POWR) Powerflute Oyj

19 January 2012

POWERFLUTE OYJ

PRE-CLOSE TRADING UPDATE

Powerflute Oyj ("Powerflute" or the "Group") today provided the following update on trading for the year ended 31 December 2011.

The Packaging Papers business continued to perform well during the second half of 2011 as capital investment projects and management action taken earlier in the year strengthened our competitive position and contributed significantly to an improvement in underlying performance. This was achieved despite an increasingly challenging economic environment, which resulted in weakening demand and price pressure in certain markets.

The operating profit from continuing operations in the second half was similar to that of the first half, despite the earlier period including a gain of €1.9m from the sale of Harvestia shares, and we now expect the results for the full year to be slightly ahead of current expectations. The Group was strongly cash generative and ended the year with net cash of €19.1m, consisting of cash and cash equivalents of €45.6m and total borrowings of €26.5m.

The uncertain economic environment continues to affect consumer confidence and market conditions for Packaging Papers are more challenging now than they were for much of 2011. However, we are confident that the Group is well positioned to benefit from any improvement in conditions as the year progresses and has the financial resources to take advantage of opportunities as they arise.

Dermot Smurfit, Chairman of Powerflute, said:

"Packaging Papers performed very strongly during the second half and its results for the year ended 31 December 2011 are a considerable improvement over the prior year and represent the most successful period for this business since its acquisition by Powerflute and its predecessors in 2005.

Although market conditions have been favourable throughout much of 2011, investment decisions and management action have also contributed significantly to improved product quality and consistency, leading to greater penetration of more attractive and profitable markets, better production efficiency and lower costs.

We expect 2012 to be a more challenging year from a macro-economic perspective, but we are very well positioned to take advantage of possible opportunities that this might afford us."

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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) and on First North, the alternative market of the OMX Nordic Exchange Stockholm AB (Ticker POW1V). 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 locally sourced birch. Corrugated boxes manufactured using Nordic semi-chemical fluting demonstrate 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 has the capacity to produce up to 300,000 tonnes per annum and is one of only three suppliers of Nordic semi-chemical fluting in Europe.

30 December 2011

POWERFLUTE OYJ

INVESTMENT IN HARVESTIA

Powerflute Oyj ("Powerflute" or the "Company") today announced that it has reached agreement to increase its interest in Harvestia Oy ("Harvestia"), an associated company which sources wood for Powerflute's businesses in Finland, through the acquisition of shares from Myllykoski Corporation ("Myllykoski"). Powerflute will acquire a further 15% of the equity of Harvestia for cash consideration of €1.4m payable on 2 January 2012. The purchase of Harvestia shares will be financed from Powerflute's own cash resources and following completion of the transaction Powerflute will have an interest of 45%. Harvestia reported a profit after taxes for the year ended 31 December 2010 of €1.7m and will continue to be accounted for using the equity method as an associated company.

Harvestia was established as a procurement partnership by Powerflute and Myllykoski in 2008. The partnership was expanded in January 2011 through the addition of Vapo Oy ("Vapo") which purchased an interest of 30% through the acquisition of shares from the existing partners and a new investment into Harvestia.

Following completion earlier this year of the acquisition of Myllykoski by UPM-Kymmene ("UPM"), the partners have agreed to various changes to the ownership and operation of Harvestia. Under these arrangements, Powerflute and Vapo will each acquire 50% of the shares previously held by Myllykoski and will then each have an interest of 45% in Harvestia, with the remaining 10% under the control of Harvestia's management.

Harvestia will continue to be an independent and active participant in the wood market in Finland and will continue to meet the wood procurement needs of both of its industrial partners and of its other customers, which together represent a significant proportion of total annual volumes.

Commenting on the transaction, Dermot Smurfit Chairman of Powerflute said:

"We are pleased to have reached agreement on the purchase of Myllykoski's interest in Harvestia. Powerflute and Vapo remain committed to the future development and growth of Harvestia and in particular to the expansion of its business in areas other than supply of wood to industrial owners. Since Vapo joined in January 2011, Harvestia has enjoyed strong growth in many new areas of activity and we look forward to continuing this positive development in the future."

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For further information, please contact:

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) and on First North, the alternative market of the OMX Nordic Exchange Stockholm AB (Ticker POW1V). 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 locally sourced birch. Corrugated boxes manufactured using Nordic semi-chemical fluting demonstrate 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 has the capacity to produce up to 300,000 tonnes per annum and is one of only three suppliers of Nordic semi-chemical fluting in Europe.

7 November 2011

POWERFLUTE OYJ

RECEIPT OF SECOND INSTALMENT OF SCHEUFELEN CONSIDERATION

Powerflute Oyj ("Powerflute" or the "Group"), the packaging and paper group, today confirmed that the second instalment of the cash consideration for the disposal of the Papierfabrik Scheufelen group of companies (together "Scheufelen") of €7.5m was received by the Group as expected on Friday, 4 November 2011.

Scheufelen, which represented the whole of the Graphic Papers business segment, was sold to Paper Excellence BV, a privately owned pulp and paper producer, for total consideration of €38.5m, comprising cash consideration of €32.5m (of which €25.0m was paid at completion on 4 May 2011) and the assumption of €6.0m of debt by Paper Excellence.

Dermot Smurfit, Chairman of Powerflute said:

 "We are pleased to have received the second instalment of the cash consideration for the disposal of Scheufelen. We believe the disposal of Scheufelen to Paper Excellence was a successful outcome for our shareholders. Powerflute achieved a significant return on its investment in a little over two years and is in a strong position to continue to pursue its strategy of seeking opportunities to acquire underperforming businesses in the paper and packaging sectors."

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For further information, please contact:

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) and on First North, the alternative market of the OMX Nordic Exchange Stockholm AB (Ticker POW1V). 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 locally sourced birch. Corrugated boxes manufactured using Nordic semi-chemical fluting demonstrate 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 has the capacity to produce up to 300,000 tonnes per annum and is one of only three suppliers of Nordic semi-chemical fluting in Europe.