Tulikivi Corporation will acquire the entire issued capital of
soapstone manufacturing company Kivia Oy. As a result of the
transaction, Tulikivi is set to strengthen its position as the
market leader in the manufacture of heat-retaining fireplaces. The
letter of intent to carry out the acquisition was signed on 10th
September 2003. The final contract of acquisition will be signed
by 31st October 2003.

Through the acquisition of Kivia Oy, Tulikivi Corporation will:
· Increase its current product range
· Extend its distribution chain to include specialty stores
· Significantly increase its soapstone reserves

The acquisition of Kivia Oy will increase Tulikivi’s net sales by
approximately EUR 3 million, and it will have a positive effect on
Tulikivi’s earnings per share.

Kivia Oy is the third largest soapstone processor in Finland. The
company has some thirty employees and ten shareholders. Its major
shareholders are Managing Director Martti Palviainen, capital
investment company Teknoventure Oy, the Finnish National Fund for
Research and Development Sitra, Sampo Oyj, Mutual Insurance
Company Pension-Fennia and Finnvera Plc. The company has been in
business since 1998 and its net sales in 2002 amounted to EUR 2.8
million. Kivia Oy’s production facilities are located in Kuhmo,
where the company processes the region’s soapstone resources.
Tulikivi Corporation intends to continue Kivia Oy’s business
operations in Kuhmo.

Product range and stone reserves set to expand

Although to date Tulikivi Corporation and Kivia Oy have both
operated in the Finnish market for heat-retaining fireplaces,
their products are not identical. The glazed tile-surfaced and
lightweight heat-retaining soapstone fireplaces designed and
manufactured by Kivia Oy will complement Tulikivi
Corporation’s current product range. Kivia Oy has also created its
own range of design fireplaces. Kivia has sold its fireplaces
directly through its own distribution chain consisting of dozens
of commercial outlets. This new and interesting specialty

2(2)
distribution channel will expand Tulikivi’s current hardware store
and studio distribution chain.

Even on Tulikivi Corporation’s scale, Kivia Oy has considerable
soapstone reserves which, together with the company’s other stone
resources, are sufficient to meet the Group’s strategic objectives
for decades to come. The blue-toned soapstone found in Kuhmo is
different from the soapstone types quarried at Tulikivi’s reserves
in Nunnanlahti and Suomussalmi. This means that the stone material
will also be a natural extension to Tulikivi Corporation’s stone
range.

Tulikivi is one of Europe’s largest stone processing companies

Tulikivi Corporation and its subsidiaries form the Tulikivi Group,
which is the world’s largest and most technologically advanced
soapstone processing company, as well as the largest manufacturer
of industrially produced heat-retaining fireplaces in the world.
The Group is among the five largest stone processing companies in
Europe. In 2002, the Group’s net sales amounted to MEUR 52.5. The
Group has six production facilities, and its personnel consists of
approximately 550 employees.

Additional information:
– Tulikivi Group, FIN-83900 Juuka, Finland, tel. +358 (0)13
681 111, www.tulikivi.com
– Chairman of the Board Matti Virtaala
– Managing Director Juha Sivonen

Distribution:
– Helsinki Securities and Derivatives Exchange, Clearing House
– Key media