Fazer Group: appointed new President

Helsinki / FI. (fg) M.B.A. Karsten Slotte (54) takes up the position of President of Fazer Group as of November 01, 2007. His previous position was Executive Vice President Of Fazer Group. Berndt Brunow is leaving Slotte with a profitable company which offers meals, bakery products and confectionery. Brunow, who has led Fazer Group since 2002, was appointed member of the Board of Directors of Fazer in the last Shareholders´ Meeting. He will continue as Fazer Group´s representative in the board of Cloetta Fazer, and will be Fazer´s candidate for the same assignment in the future as well.

«I want to express my warmest thanks to Berndt Brunow. He has done a brilliant job reshaping Fazer Group, and has led the company to the road of profitable growth. During his leadership, Fazer Group has successfully carried out its growth and development strategy. The Group´s financial position is strong, both turnover and profit continue to grow. The job swap, which we agreed upon when Berndt Brunow proposed Karsten Slotte as the new Executive Vice President of the Group, will now come true. Slotte will take on a healthy and dynamic company. I believe his know-how and background are excellent for managing the present Fazer», says Chairman of the Board of Directors of Fazer Group Carl G. Björnberg.

In July 2007, Fazer Group´s cumulative turnover was 646,5 million Euro (581,2 in July 2006). The contribution of business operations towards the Group´s operating profit in 01 January to 31 July 2007 was 13,4 million Euro (9,5 in July 2006). The company´s turnover is expected to increase by ten percent in 2007 (1.068,7 million Euro in 2006). The contribution of business operations toward the Group´s operating profit in 2006 was 32,1 million Euro, growth being nearly 40 percent compared to 2005. The Group´s operating profit for year 2007 as a whole is expected to be notably greater than in 2006.

Under Berndt Brunow´s management, a strategy was created for the Group that is focused on profitable growth, developing the organisation and competence, creating a joint corporate identity and better utilisation of the brands, as well as operational efficiency. The Group has developed according to objectives in these areas.

«We are able to rise to the challenges we face in the near future. We will need to react even more often and faster to the changes in our environment, rising prices of raw materials, fiercer competition and changes in consumer habits. Also, the availability of professional staff is a big challenge for our business. Skilful and committed personnel is a prerequisite for our operations. I greatly value the fact that I have been able to familiarise myself with the company business under the guidance of Berndt Brunow. This is a good place to start», Karsten Slotte describes.

Slotte started as Fazer Group´s Executive Vice President in January 2007. Before that, Slotte was President of Cloetta Fazer AB. He has extensive experience in the confectionery and bakery businesses, amongst others as the CEO of Fazer Makeiset Oy and Vaasan Mylly Oy / Cultor Oy. Karsten Slotte is also a board member of Onninen Oy and HKScan Oyj.

About: Fazer Group originates from a family business founded in 1891. Today the Group offers meals, bakery products and confectionery and operates in a total of nine countries. Its operations are based on passion for customer, quality excellence and team spirit. The Group operates in four divisions, which are all committed to offering taste sensations: Fazer Amica, Fazer Bakeries, Candyking and Fazer Russia.

Fazer Amica is a leading contract catering company in the Nordic and the Baltic countries, offering customers delicious food and tailor-made service solutions. The company operates in the Nordic countries, Estonia, Latvia and Russia. Fazer Bakeries offers fresh and tasty bakery products and operates in Finland, Sweden, Estonia, Latvia and Lithuania. Candyking is a pioneer and a market leader in the pick + mix confectionery business in the Nordic countries, the United Kingdom and the Baltic states. Fazer Russia – Hlebny Dom and Zvezdny operative since 01 April 2007, is responsible for Fazer´s bakery operations in Russia and is one of the leading bakery companies in Russia.

Fazer´s most important associated company is Cloetta Fazer AB, which is the leading confectionery company in the Nordic countries. Fazer Group´s turnover for 2006 was over one billion Euro. The Group employs around 15.300 people.