Pihlajalinna announces the preliminary price range for its planned initial public offering - Seite 3

The Company's management estimates that the proceeds received from the Initial Public Offering ensure a sufficient share of own funding for Pihlajalinna to finance the Company's most important strategic growth initiatives in the future. The proceeds from the IPO are indented to be used for strengthening the Company's balance sheet by repaying the Company's bank loans, carrying out significant acquisitions and establishing new units to implement the Company's growth strategy.

The public listing of the shares is expected to improve the Company's ability to use its own shares for funding strategic acquisitions. In addition, the public listing is expected to improve awareness of the Company among the present and potential customers, cooperation partners and employees. Improved awareness supports the Company's business both in the private and public sector. Private persons tend to prefer the services of well-known operators, and the public sector is more eager to sign cooperation agreements with large and financially solid companies. The Initial Public Offering widens Pihlajalinna's ownership base with both domestic and international investors, and increases the relative amount of shareholders who are independent of the Company, thus supporting free market price formation for the Share. Furthermore, the Offering provides the present shareholders with an opportunity to trade their shares on market terms.

About the IPO

In the Initial Public Offering, the Company and the Sellers offer preliminarily a maximum of 7,607,076 Shares for subscription and purchase, of which (i) a maximum of 500,000 Shares are preliminarily offered to private individuals and organisations in Finland, and (ii) 7,107,076 Shares are offered to Finnish and international institutional investors.

The Preliminary Price Range in the IPO is EUR 9.00-10.75 per share. The final subscription price ("the Final Subscription Price") for the Shares will be decided after the subscription period on or about 4 June 2015. The Final Subscription Price may be above or below the Preliminary Price Range provided, however, that in the Public Offering, the Final Subscription Price cannot be higher than the maximum price of the Preliminary Price Range, i.e. EUR 10.75 per Share.