RAPALA HAS COMPLETED THE ACQUISITION OF THE SUFIX BRAND AND CONCLUDED AN EXCLUSIVE SUPPLY AGREEMENT WITH TAIWANSE YAO I

Rapala VMC Corporation
                                           STOCK EXCHANGE RELEASE
                                           July 10, 2008 at 11.00 am


Rapala VMC Corporation ("Rapala") and Yao I Co ltd ("Yao I"), one of
the leading manufacturers of fishing line in the world having its
offices in Changhua, Taiwan, and fishing line factories in Taiwan and
China, have concluded an exclusive supply agreement for the supply of
fishing lines. In connection with this arrangement, Yao I has sold
its Sufix brand, including all intangible assets relating to Sufix
branded and other fishing line business (excluding manufacturing
related), to Rapala. These transactions were closed today.

According to the terms of the exclusive supply agreement, after an
interim period and under certain conditions, Rapala alone will be
selling fishing lines manufactured by Yao I and Yao I will be
manufacturing fishing lines for Rapala only, including subcontracted
fishing lines for third party customers (OEM).

The consideration for the Sufix brand, including all intangible
assets relating to Sufix branded and other fishing line business
(excluding manufacturing related), is 10 MUSD and will be paid over
the next seven years. In addition, Rapala will pay some 1.7 MUSD for
Sufix fishing line inventories in the USA.

In the USA, the main market for Sufix fishing line, Sufix fishing
lines will be distributed by Rapala's US distribution company,
Normark Corporation, from the end of July onwards. After a short
interim period, also all other Rapala's 27 distribution companies
around the world will commence the distribution of Sufix branded
fishing lines.

Rapala aims to expand its fishing line sales in the next few years to
some 25-40 MEUR and gain a significant market share of the global
fishing line business. In 2007, the fishing line sales of Rapala were
some 7 MEUR.

This deal will have an immaterial effect on Rapala's 2008 net sales
and profitability but it is expected to increase Rapala's fishing
line sales close to 10 MEUR in 2009 compared to 2007.

RAPALA VMC CORPORATION

Jorma Kasslin
Chief Executive Officer

For further information, please contact:

Jorma Kasslin, President and Chief Executive Officer, tel. +358 9
7562 540
Jouni Grönroos, Chief Financial Officer, tel. +358 9 7562 540
Olli Aho, Company Counsel, tel. +358 9 7562 540
Lars Ollberg, Director of Sales for Accessories, tel. +358 9 7562
540

Distribution: Main Media and OMX Nordic Exchange in Helsinki

Rapala 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, Russia 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, Marttiini and now
also Sufix. The Group, with net sales of EUR 242 million in 2007,
employs more than 4 000 people in 30 countries.