RAPALA VMC CORPORATION (RAPALA) AND SHIMANO EUROPE FISHING B.V (SHIMANO) AGREE NEW DISTRIBUTION STRATEGY FOR DYNAMITE FISHING BAITS IN THE UK

RAPALA VMC CORPORATION (RAPALA) AND SHIMANO EUROPE FISHING B.V. (SHIMANO) AGREE NEW DISTRIBUTION STRATEGY FOR DYNAMITE FISHING BAITS IN THE UK

To align with the changing dynamics of the UK fishing bait market and to maximise the potential of the Dynamite brand in the UK, from September 1st 2016 onwards Shimano Normark UK Ltd will no longer distribute Dynamite in the UK.  Dynamite, owned by Rapala since 2010, is one of the most popular carp fishing bait brands in Europe, also specialising in top quality match ground baits, liquid additives and pellets.

Rapala and Shimano have agreed on a new long-term UK strategy under which the UK distribution of Dynamite will come under the control of Rapala and Dynamite Baits Ltd and Shimano will acquire back 50% of Shimano Normark UK Ltd from Rapala. This transaction will have no material impact on Rapala's financial result or financial position and have no impact outside of the UK.

Other Rapala brands including Carp Spirit, Rapala, Storm, Sufix and Blue Fox will continue to be distributed by Shimano's UK distribution company.

Helsinki, September 1, 2016

RAPALA VMC CORPORATION

Distribution: Main Media

Rapala VMC Corporation ("the Group") is a leading fishing tackle company and the global market leader in fishing lures, treble hooks and fishing related knives and tools. The Group also has a strong global position in other fishing categories and it is one of the leading distributors of outdoor, hunting and winter sport products in the Nordic countries. The Group has the largest distribution network in the industry. The main manufacturing facilities are located in Finland, France, Estonia, Russia, China, Indonesia and the UK. The Group brand portfolio includes the leading brand in the industry, Rapala, and other global brands like VMC, Sufix, Storm, Blue Fox, Luhr Jensen, Williamson, Dynamite Baits, Mora Ice, StrikeMaster, Marttiini and Peltonen. The Group, with net sales of EUR 278 million in 2015, employs some 3 200 people in 40 countries. Rapala VMC Corporation's share is listed and traded on the Nasdaq Helsinki stock exchange since 1998.