STOCKMANN TO BUILD A DEPARTMENT STORE AND SHOPPING CENTRE IN ST PETERSBURG

STOCKMANN plc STOCK EXCHANGE RELEASE May 24, 2005 at 13.30

STOCKMANN TO BUILD A DEPARTMENT STORE AND SHOPPING CENTRE IN ST PETERSBURG

Stockmann has concluded a real-estate deal on building a department store and
shopping centre in the heart of St Petersburg. Apart from a full-scale
Stockmann department store, other retailers will also move into the building,
and it will have a modern car park. The department store and shopping centre
are scheduled for completion in 2008.

Stockmann has concluded a real-estate deal on building a department store and
shopping centre on Nevsky Prospekt in the heart of St Petersburg. The location
of the approximately 10,000 square metre plot beside the underground station on
Vosstaniya Square and in the immediate vicinity of Moscow Station is an
excellent commercial site. Stockmann previously had a preliminary lease
agreement on the same site, but it was cancelled in summer 2003.

On the purchased plot, a building with at least 45,000 square metres of gross
floor space will be erected, and it will feature not only a full-scale Stockmann
department store but also other retail shops and a modern car park. Apart from
its department stores, Stockmann also operates the Zara, Bestseller and Seppälä
retail chains in Russia.

Stockmann has operated in St Petersburg since 1993 and has long been on the
lookout for a suitable department store location in the city. Retail sales in
St Petersburg are estimated to develop strongly in step with the growth in
disposable income.

The department store and shopping centre investment will have a price tag of
about EUR 80-110 million, depending on the final floor space to be built.
Stockmann will carry out and finance the construction project either
independently or in cooperation with suitable investors. The department store
and
shopping centre are scheduled to open their doors to the public in 2008.

For additional information, contact Jukka Hienonen, Stockmann’s executive vice
president, tel. +358 9 121 5230.

Helsinki, May 24, 2005

STOCKMANN plc

Hannu Penttilä
CEO

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Helsinki Stock Exchange
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