STOCK EXCHANGE RELEASE December 13, 2007 As part of the restructuring and development of its lure manufacturing operations in Europe, Rapala VMC Corporation ("Rapala") has informed the labour representatives of its lure factory in Ireland about plans to close the factory. Accordingly, the manufacturing operations in Ireland will end by next summer. The manufacturing functions of the Irish factory will be taken over by the Group's lure factory in Estonia that will continue finalizing, testing and packaging the products. At the same time, significant part of assembly work is being transferred from Estonian factory to Rapala lure factory in Russia, established earlier this year. The ramp-up of the Russian factory is proceeding on plan, and both the number of personnel and assembly volumes are increasing each quarter. The Russian factory employs currently some 50 persons. Rapala's lure factory in Ireland was established in 1981 in Inverin, close to Galway at the west coast of Ireland. The average number of personnel in the Irish factory has been declining in last few years and in 2007 it has been some 30 persons. The personnel will be some 20 persons at the end of 2007. Rapala will book a restructuring provision in the fourth quarter for the costs related to the closing of the factory. The amount of the restructuring provision and the expected benefits will be announced later when more detailed information is available."The labour cost for this type of production is too high in Ireland," states Juhani Pehkonen, Head of Rapala's Fishing Lure Business and continues: "These changes will strengthen the Group's position as the world's leading manufacturer of hard-bodied lures and increase production efficiencies and capacity." RAPALA VMC CORPORATION Jorma Kasslin Chief Executive Officer For further information: Jouni Grönroos, Chief Financial Officer, tel. +358 9 7562 540 Olli Aho, Company Councel, tel. +358 9 7562 540 Juhani Pehkonen, Head of Lure Business, tel. +358 9 7562 540 Distribution: Helsinki Stock Exchange Main Media Rapala VMC Corporation is a leading fishing tackle company and the global market leader in the fishing lures, treble hooks and fishing related knives and tools. The Group also has a strong global position in other fishing categories. The Group has its own distribution companies in all the main markets and the largest distribution network in the industry. The main manufacturing facilities are located in Finland, France, Estonia and China. The Group brand portfolio includes the leading brand in the industry, Rapala, and other global brands like VMC, Storm, Blue Fox, Luhr Jensen, Williamson and Marttiini. The Group, with net sales of EUR 227 million in 2006, employs more than 4 000 people in 29 countries.