CapMan to become majority owner of Lunawood

CapMan Press Release 29 Month 2010 14.30 p.m.

CapMan to become majority owner of Lunawood

The CapMan Technology 2007 fund has entered into an agreement to invest in Lunawood, the world's leading producer of thermal wood. The investment will strengthen Lunawood's position by focusing on international growth.

Lunawood is a specialist in thermal wood. The thermal wood produced by the Lunawood process maintains its shape and dimensions in a wide range of conditions and is weather-resistant It is suitable for use both by industry and householders. The company uses Finnish pine and spruce, which are processed using only water and heat. The resulting products offer a highly sustainable alternative to timber from tropical forests and impregnated wood. Lunawood exports to over 30 countries and exports account for the bulk of its sales. The later totalled some €9.3 million in 2009 and the company employs around 50 people.

"The market for thermal wood has grown strongly in recent years and we believe that this growth will continue," says Petri Niemi, Head of CapMan Technology. "Lunawood's high-quality products and unique technology gives an excellent basis for growing Lunawood's business and strengthen its position as the market leader in the field."

"Our new innovations give us the opportunity to utilise our position as the leading supplier of thermal wood and continue our growth as an international company. Now with CapMan, we will have the necessary resources to execute this strategy," says Lunawood's President, Martti Kauhanen.

"We have developed Lunawood for 15 years and given the company an excellent basis for future growth and international expansion," says Aulis Kärkkäinen, who founded Lunawood with his brother, Olavi Kärkkäinen. "I am very satisfied that Lunawood now has an active majority shareholder in the shape of CapMan, with the ability to take the company to the next stage. I believe that this is the right time to pass on ownership and the drive behind what has been a family-owned business up until now to an outside expert."

Following completion of the transaction, the CapMan Technology 2007 fund will own 74% of Lunawood and the company's management the remaining 25%. The closing of the transaction is subject to certain customary closing conditions and is expected to be finalised by the end of May 2010. CapMan Plc is a major investor in the CapMan Technology 2007 fund.

For further information, please contact:

Petri Niemi, Head of the CapMan Technology Team, Senior Partner, tel. +358 (0)207 207 546 or +358 (0)400 511 493

Martti Kauhanen, President, Oy Lunawood Ltd., tel. +358 (0)400 545 624

Aulis Kärkkäinen, Founder of Oy Lunawood Ltd., tel. +358 (0)500 573 105

CapMan www.capman.com
CapMan is one of the leading alternative asset managers in the Nordic countries and Russia and manages private equity funds with approximately EUR 3.6 billion in total capital. CapMan has six investment areas (CapMan Buyout, CapMan Technology, CapMan Life Science, CapMan Russia, CapMan Public Market and CapMan Real Estate), and each of them has a dedicated team and funds. Altogether CapMan employs over 150 people in Helsinki, Stockholm, Copenhagen, Oslo and Moscow. CapMan was established in 1989 and its B shares are listed on the Helsinki Stock Exchange since 2001.

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