YIT starts up residential construction a

 YIT starts up residential construction around Moscow

YIT will commence residential construction around Moscow. The start-up of residential construction in the Moscow area is in line with YIT’s strategy and opens up significant markets for the company. Construction will begin immediately and during the next year YIT will start up the construction of about 1,400 residential units in the area. YIT has already been building residences in St Petersburg for several years. In 2004, YIT will build about 3,000 residential units in Russia. During the subsequent years, the number of start-ups will already be higher than in Finland.

To carry out the residential construction operations, YIT Construction Ltd will establish a joint venture named ZAO YIT Ramenje with the Moscow-based residential building contractor ZAO Zhilishsnaja Assosiatsija Ramenje. YIT will have a majority stake in ZAO YIT Ramenje. It will develop a housing brand suitable for local conditions, comprising residential design, construction, quality issues, sales and financing. It is intended that the joint venture will build residences in large volumes.

Residential construction in the Moscow area offers major opportunities to YIT. The population of the cities surrounding Moscow is 6.5 million and about 30,000 residential units are built in these cities annually, that is, as many as in Finland. Annual growth in the housing market has been estimated to amount to three per cent. Over 8.5 million people live in Moscow. In 2002, about 80,000 residential units were built there.

The Russian partner in the ZAO YIT Ramenje joint venture, ZAO Zhilishsnaja Assosiatsija Ramenje, has built housing in the Moscow area for ten years and is presently one of the largest residential construction companies in the area. The company will transfer its residential construction operations to the new company. ZAO YIT Ramenje’s initial market share is about 1.6% and is forecast to exceed 5 per cent in 2006.

YIT’s St Petersburg-based subsidiary ZAO YIT Lentek has been building residential units in St Petersburg on a developer- contracting basis for several years. At present, 600 residential units are nearing completion. In 2004, ZAO YIT Lentek will start up the construction of a four-building complex with a total of 1,318 residential units. YIT also builds housing in Estonia and Lithuania. In Finland, YIT Construction Ltd is the country’s largest residential construction company.

For additional information, contact: Mikko Rekola, Senior Vice President, YIT Construction Ltd/International Operations, tel. +358 20 433 2127, mikko.rekola@yit.fi.

YIT CORPORATION

Veikko Myllyperkiö Vice President, Corporate Communications

 Distribution: Helsinki Exchanges, principal media, www.yit.fi