Citycon Oyj      Stock exchange release   19 May 2005        10:00
am

Citycon expands its operations into Sweden

Citycon Oyj has signed an
agreement on 18 May 2005 under which Citycon buys 75
percent of the shares of
Armada Exploaterings AB. Purchase price was 49.9 million
Swedish crowns (EUR
5.4 million). Armada Exploaterings AB owns the Åkersberga
shopping centre
located northeast of Stockholm. The total value of the properties
belonging to
the shopping centre is approximately 440 million Swedish crowns (EUR
47.7
million). The seller is Armada Fastigheter AB which is owned by
the
municipality of Österåker. Following the transaction Armada Fastigheter AB
will
continue to own 25 percent of Armada Exploaterings AB. The title to
the
acquisition target will be transferred to Citycon on 1 July
2005.

Citycon and the municipality of Österåker will start to develop the
shopping
centre together. Citycon will buy the outstanding shares of Armada
Exploaterings
AB after the expansion is completed. This is Citycon's first
foreign investment
as a part of its internationalization strategy.

The
Åkersberga shopping centre is an important part of the centre of
the
municipality of Österåker, which is located about 30 kilometres from
Stockholm.
About 37,000 inhabitants currently live within the catchment area
of the shopping
centre. Åkersberga is a growth centre, and its population and
number of jobs are
estimated to increase significantly.

Citycon will start
to develop the Åkersberga shopping centre by expanding it, and
modernizing the
existing premises. The shopping centre has 33,000 square metres
of retail
premises, offices and residential. Currently about 80 companies operate
in the
shopping centre, of which about 40 are retail businesses.

The first
international investment

"The acquisition of the Åkersberga shopping centre
is the first international
investment as a part of Citycon's growth strategy.
Our aim is to carry out more
foreign investments and build a property
investment company that operates
throughout the Nordic countries and Baltic
states, and takes an active role as
owner of its properties.

"Åkersberga
has great development potential. Active development of the property
can have
great benefits to the shopping centre's customers and the tenants of the
real
estate," said Petri Olkinuora, CEO of Citycon.
Åkersberga, estimated key
figures

Floor space       Pre-expansion         Post-expansion
m2

Retail
premises          20,300         31,500
Office space             800          
 800
Residential              12,000         17,500
Other                   
200            200
Total                    33,300         50,000

Annual
gross rental income,
millions of Swedish crowns      48.0

Annual net rental
income,
millions of Swedish crowns      30.9

Net yield*                    
 8.0 percent
Occupancy rate            about 100 percent

Anchor tenants:   
       Hypermarket ICA, Kapp-Ahl, Lindex, Kick's, Nordea Bank,
               
          ON OFF
      
Total turnover in 2003,
millions of Swedish crowns  
    482
Annual visitors, millions  about 4.5

*Does not include property
acquired for the expansion

A profitable investment

The annual net yield
of Citycon's investment at the time of the signing is about
8.0 percent. By
2009 the development project will be completed which will
transform the
shopping centre into a unified complex. The total investment in
the
development project will be 900-950 million Swedish crowns, and the annual
net
yield of the investment is projected to be about 9.0 percent.

Citycon
will initially finance the acquisition through a bank loan

Citycon is
specialized in the shopping centre business

Citycon is a Finnish property
investment company specialising in retail premises.
The company leases,
manages and develops its property portfolio and also plans
and commissions the
construction of new premises. Citycon Oyj is a publicly
traded company, and
its shares are quoted on the Helsinki stock exchange.

Citycon owns 144
properties. On 31 March 2005, these properties had a total fair
value of EUR
736.4 million and net yield of 8.7 percent. The company's property
portfolio
is concentrated in the Helsinki Metropolitan Area and Finland's
largest
cities.

In 2004, Citycon had turnover of EUR 88.6 million, and
gross rental income from
its property portfolio stood at EUR 83.2 million.
About 44.9 percent of the
income came from the properties in the Helsinki
Metropolitan Area, and 35.7
percent from properties in other
cities.

Citycon's strong expertise in business facilities, the constant
improvement of
its properties and its comprehensive property portfolio
facilitate the creation
of long-lasting customer relationships and efficient
service for customers,
including large retail chains.

Citycon is an expert
in retail premises and a partner for its tenants. The
company creates
opportunities for tenants' business development by monitoring
intensely
tenants' needs and market situation.

Helsinki
19 May 2005

Citycon
Oyj
Board of Directors

For more information, please contact:
Petri
Olkinuora, CEO
tel. +358 9 6803 6738 or +358 400 333
256
petri.olkinuora@citycon.fi

Pirkko Salminen, CFO
tel. +358 9 6803 6730
or +358 50 3022 485
pirkko.salminen@citycon.fi

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