Pihlajalinna Oyj

Related Party Transaction • Jul 1, 2016

Disclosure 343803

Pihlajalinna Oyj - Company Announcement

Pihlajalinna Plc:The Pihlajalinna and Mänttä-Vilppula contract and its 5 year option period approved. Also Kuusiokunnat approved the service agreement option period.

Pihlajalinna Plc, Stock Exchange Release, 1 July 2016 at 9.00 (EEST) The Pihlajalinna and Mänttä-Vilppula contract and its 5 year option period approved Also Kuusiokunnat approved the service agreement option period The contract negotiations between Mänttä-Vilppula city and Pihlajalinna have been concluded. Mänttä-Vilppula city board decided to approve the social and healthcare service agreement and also the five year option period included in the agreement. The agreement term is 1 August 2016 - 31 July 2026 after which the option period between 1 August 2016 - 31 July 2031 will start. The agreement period for Juupajoki municipality will begin 1 January 2018. The estimated annual social and healthcare net cost of Mänttä-Vilppula is 40 million euros and the estimated annual social and healthcare net cost of Juupajoki is 7 million euros. Kuusiokunnat joint municipal social and health authority's board has decided in the evening of 30 June to approve the option included in the social and healthcare service agreement between Pihlajalinna and Kuusiokunnat municipalities (Alavus, Kuortane, Ähtäri and Soini). Decision comes to force after an appeal period and is conditional. Kuusiokunnat joint municipal health authority can terminate the implementation of the option period by the 30 June 2018. Pihlajalinna and Kuusiokunnan municipalities' joint venture company Kuusiolinna Terveys Oy has produced the Kuusiokunnat social and healthcare services from 1 January 2016. The term of the agreement is 10 years and it has a five year option period.The estimated annual social and healthcare net cost of Kuusiokunnat is 90 million euros. Further information Mikko Wirén, CEO, Pihlajalinna Plc, +358 50 322 0927 Terhi Kivinen, SVP, Communications, Marketing and IR, Pihlajalinna Oyj, +358 40 848 4001, terhi.kivinen@pihlajalinna.fi Distribution Nasdaq Helsinki Major Media investors.pihlajalinna-konserni.fi [HUG#2024416]