Sanitec Corporation: Court of First Instance Rules against Sanitec in French Labor Case from 2010

Regulatory News:

Sanitec (STO:SNTC) has received decisions of French labor court of first instance (Conseil de Prud´Hommes de Blois) in cases initiated by 84 former employees of Produit Ceramiques de Touraine S.A. ("PCT”) claiming additional compensation for redundancies as a result of the closure of the company’s production site located in Selles, France in 2010.

According to the decisions of the labor court, additional compensation of approximately EUR 6.5 million shall be borne by PCT. The decisions are open for appeal until 10 January 2014.

Based on current information, Sanitec deems the decision highly arbitrary and unjustified. Sanitec will review the decision and implications thereof further in detail together with its advisors and will file an appeal in due course.

For further information, please refer to page 51 of the offering memorandum dated 26 November 2013 and note 25 in the 2012 annual report.

About Sanitec

Sanitec is the market leader in bathroom ceramics and a leading supplier of bathroom fixtures in the Company’s core markets with a unique portfolio of locally well-established brands. Sanitec has longstanding and stable relationships with customers, installers and other industrial partners, and develops sustainable and complete bathroom concepts including bathroom ceramics, furniture, pre-wall flushing solutions, taps and mixers, as well as baths and showers. Sanitec’s brands and products represent a high level of innovation and quality, as well as advanced design that is both functional and attractive.

Sanitec operates an integrated organisation with an unparalleled local presence to provide the best value to its customers when it comes to bathroom products. In 2012 net sales amounted to EUR 753 million, and currently Sanitec employs approximately 6,500 people working in 18 European based production plants and at the Company’s sales, product management and design and other support offices. Sanitec’s head office is located in Helsinki, Finland.

The shares in Sanitec Corporation are admitted on trading on NASDAQ OMX Stockholm under the symbol "SNTC”.

For more information about Sanitec and its products, please visit www.sanitec.com.

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