EXEL OYJ'S Q4 PERFORMANCE AND FINANCIAL STATEMENTS BULLETIN 2006

EXEL OYJ  STOCK EXCHANGE RELEASE  22.2.2007 at 11.00am   1 (15)                    


EXEL OYJ'S Q4 PERFORMANCE AND FINANCIAL STATEMENTS BULLETIN 2006                

Summary                                                                         

- Net sales for the financial year increased to EUR 112.4 (91.3) million or 23% 
over the previous year                                                          
- Net sales in Q4 were EUR 30.4 (21.9) million                                  
- Operating profit for the financial year was EUR 0.4 (12.4) million, down 97%, 
representing 0.3% (13.6%) of net sales including EUR -6.7 million of            
non-recurring items                                                             
- Operating profit in Q4 was EUR 0.6 (2.2) million or 2.1% (9.9%) of net sales  
- Earnings per share for the full year were EUR -0.06 (0.76)                    
- Net interest-bearing liabilities increased to EUR 27.5 (8.2) million, whilst  
net gearing rose to 112.8 % (30.2%)                                             
- Cash flow from business operations was positive at EUR +5.2 (+7.9) million    
- Exel Industry became the world's first truly international pultrusion company 
when acquiring Pacific Composites and continued its profitable growth           
- The development of the Sport Division was highly unsatisfactory with declining
sales and a sharp drop in operating result                                      
- The Board of Directors proposes a dividend of EUR 0.20(0.40) per share        
- Exel sharpens focus on Industry and conducts a strategic review of the Sports 
Brands business                                                                 



CONSOLIDATED KEY FIGURES, EUR million                                           

--------------------------------------------------------------------------------
|              | 1.10. - | 1.10. - | Change % | 1.1. -   | 1.1. -   | Change % |
--------------------------------------------------------------------------------
|              | 31.12.  | 31.12.  |          | 31.12.   | 31.12.   |          |
--------------------------------------------------------------------------------
|              | 2006    | 2005    |          | 2006     | 2005     |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales    | 30.4    | 21.9    | 38.4%    | 112.4    | 91.3     | 23.1%    |
--------------------------------------------------------------------------------
| Operating    | 0.6     | 2.2     | -70.5%   | 0.4      | 12.4     | -96.9%   |
| profit       |         |         |          |          |          |          |
--------------------------------------------------------------------------------
| % of net     | 2.1%    | 9.9%    |          | 0.3%     | 13.6%    |          |
| sales        |         |         |          |          |          |          |
--------------------------------------------------------------------------------
| Profit for   | -0.0    | 1.7     | -101.0%  | -0.7     | 8.9      | -108.2%  |
| the period   |         |         |          |          |          |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders | 24.4    | 27.0    | -9.9%    | 24.4     | 27.0     | -9.9%    |
| ´ equity     |         |         |          |          |          |          |
--------------------------------------------------------------------------------
| Net          | 27.5    | 8.2     | 236.1%   | 27.5     | 8.2      | 236.1%   |
| interest-bea |         |         |          |          |          |          |
| ring         |         |         |          |          |          |          |
| liabilities  |         |         |          |          |          |          |
--------------------------------------------------------------------------------
| Capital      | 58.1    | 41.0    | 41.6%    | 58.1     | 41.0     | 41.6%    |
| employed     |         |         |          |          |          |          |
--------------------------------------------------------------------------------
| Return on    | -0.3%   | 26.8%   |          | -2.9%    | 37.3%    |          |
| equity, %    |         |         |          |          |          |          |
--------------------------------------------------------------------------------
| Return on    | 4.9%    | 21.3%   |          | 1.2%     | 34.0%    |          |
| capital      |         |         |          |          |          |          |
| employed, %  |         |         |          |          |          |          |
--------------------------------------------------------------------------------
| Equity       | 29.9%   | 50.0%   |          | 29.9%    | 50.0%    |          |
| ratio, %     |         |         |          |          |          |          |
--------------------------------------------------------------------------------
| Net gearing, | 112.8%  | 30.2%   |          | 112.8%   | 30.2%    |          |
| %            |         |         |          |          |          |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | -0.00   | 0.15    | -100.0%  | -0.06    | 0.78     | -107.9%  |
| share, EUR   |         |         |          |          |          |          |
--------------------------------------------------------------------------------
| Earnings per | -0.00   | 0.14    | -100.0%  | -0.06    | 0.76     | -108.1%  |
| share, EUR,  |         |         |          |          |          |          |
| diluted      |         |         |          |          |          |          |
--------------------------------------------------------------------------------
| Equity per   | 2.05    | 2.34    | -12.4%   | 2.05     | 2.34     | -12.4%   |
| share, EUR   |         |         |          |          |          |          |
--------------------------------------------------------------------------------


IFRS REPORTING                                                                  

Exel has applied IFRS reporting since the beginning of 2005. This financial     
statements bulletin has been prepared in accordance with the recognition and    
measurement principles of IFRS, which are the same as in the 2005 financial     
statements.                                                                     

The financial statements of Pacific Composites Pty. Ltd., which was acquired by 
Exel Oyj on 28.2.2006, are included in the consolidated financial statements as 
of 1.3.2006.                                                                    

1 OCTOBER - 31 DECEMBER 2006                                                    

NET SALES                                                                       

Net sales for the Exel Group increased in the last quarter of 2006 by 38.4% to  
EUR 30.4 (21.9) million. The Industry Division accounted for 77% or EUR 23.4    
(15.1) million of Group net sales in Q4 and the Sport Division for 23% or EUR   
6.9 (6.9) million. The net sales include as of 1.3.2006 the operations of       
Pacific Composites, which accounted for EUR 8.9 million of the net sales in     
October-December.                                                               

The Sport Division suffered from weak demand for Nordic Walking poles in the    
Central European markets throughout 2006. However, during the last quarter the  
division reached the same sales, EUR 6.9 million, as during the last quarter    
2005.                                                                           
                                                                                
PROFIT                                                                          

The Exel Group's operating profit decreased in the last quarter by 70.5% to EUR 
0.6 (2.2) million.                                                              

Operating profit for the Industry Division in the last quarter of 2006 increased
by 12% to EUR 3.6 (3.2) million. Operating profit for the Sport Division was    
negative at EUR -3.0 (-1.1) million.                                            

FINANCIAL YEAR 2006                                                             

NET SALES                                                                       

Net sales for the Exel Group grew by 23.1% in 2006, ending the year at EUR 112.4
(91.3) million. This represents growth on the previous year of 23.1%.           

The Group's main line of business, the Industry Division, experienced strong    
growth; net sales for 2006 amounted to EUR 84.2 (56.8) million, an increase of  
48.3%. The majority of this growth resulted from the acquisitions of Pacific    
Composites and the Austrian company, Faserprofil in 2005. Pacific Composites'   
inclusion as of 28 February 2006 increased net sales for the Industry Division  
by EUR 24.4 million. The Industry Division accounted for 75% of total Group     
sales.                                                                          

Net sales for the Sport Division in 2006 fell by 18.3% from the previous year to
EUR 28.2 (34.5) million. The Sport Division accounted for 25% of total Group    
sales. The market for Nordic Walking products remained weak in German-speaking  
countries in Central Europe and the decrease in sales was due to a declining    
Nordic Walking market. New markets did not yet create a sufficient increase in  
demand.                                                                         

PROFIT                                                                          

Exel's profitability in 2006 was highly unsatisfactory and the Group reported an
operating profit of only EUR 0.4 (12.4) million or 0.3 (13.6) per cent of net   
sales. It was weakened by non-recurring items relating to restructuring measures
of EUR -4.9 million for the Sport Division and EUR -0.5 million for the Industry
Division. Additionally, the Sport Division's operating profit was weakened by   
lower sales. Restructuring measures are expected to improve profitability in    
2007.                                                                           

EUR -1.3 million of the acquisition price of Pacific Composites was allocated to
the value of the inventory. This figure in its entirety decreased realized sales
margins in the Industry Division during the period March-May. Total             
non-recurring items in the Group during the financial year were EUR -6.7        
million.                                                                        

Profitability remained at a satisfactory level in the Industry Division despite 
a considerable increase in raw material prices. Some of this price pressure was 
passed on within the production chain. Operating profit decreased to EUR 10.5   
(10.8) million, including non-recurring items of EUR -1.8 million related to the
integration of Pacific Composites and including a closure of one of the UK      
production units.                                                               

Operating profit for the Sport Division became a significant loss of EUR -10.1  
(1.6) million. The operating loss includes non-recurring costs due to           
reorganizations amounting to EUR 4.9 million. The weak profitability was also   
due to the decline in the Nordic Walking markets in Central Europe and          
investments made to open new Nordic Walking markets.                            

The availability of carbon fibre was exceptionally scarce throughout 2006. The  
lack of supply also increased raw material price levels, although it was        
possible to transfer some of the increase to product prices. The low supply     
limited the development of new applications and impacted sales of some product  
groups. The main carbon fibre suppliers have announced investments to increase  
capacity. The new capacity will enter the markets in stages from the second half
of 2007.                                                                        

The Group's net financial expenses in 2006 were EUR 1.1 (0.3) million. The      
Group's loss before taxes was EUR -0.7 (12.0) million and the loss after taxes  
the same, EUR -0.7 (8.9) million.                                               

Earnings per share were EUR -0.06 (0.78), diluted EUR -0.06 (0.76). Return on   
investment was 1.2% (34.0%).                                                    

BALANCE SHEET AND FINANCIAL POSITION                                            

Cash flow from business operations was positive at EUR +5.2 (+7.9) million.     

Operative capital expenditure was financed with cash flow from business         
operations. To fund the acquisition of Pacific Composites, EUR 18 million of    
interest-bearing long-term debt was raised. At the end of the financial year the
Group's liquid assets stood at EUR 6.2 (5.8) million.                           

Cash flow before financing but after capital expenditure amounted to EUR -20.9  
(4.4) million. The company paid total dividends during the financial year of EUR
4.7 (3.9) million. Dividend per share was EUR 0.40 (0.35).                      

The Group's consolidated total assets at the end of the financial year were EUR 
81.9 (54.6) million. The increase was caused by the Pacific Composites          
acquisition in Australia combined with the working capital demand due to the    
increase in sales volumes.                                                      

Equity at the end of the financial year was EUR 24.4 (27.0) million and solvency
ratio 29.9% (50.0%). Interest-bearing liabilities amounted to EUR 33.7 (14.0)   
million, of which short-term liabilities accounted for EUR 7.9 (4.3) million.   
Net interest-bearing liabilities were EUR 27.5 (8.2) million, and the net       
gearing ratio was 112.8% (30.2%).                                               
  							                                                                       
CAPITAL EXPENDITURE AND DEPRECIATION                                            

Group capital expenditure on fixed assets amounted to EUR 19.9 million, of which
operative capital investments accounted for EUR 2.7 million. The most           
significant investment was the acquisition of the Australia-based Pacific       
Composites at the end of February 2006. The cash consideration for Pacific      
Composites' shares amounted to EUR 17.3 million. In addition, Exel's share      
capital was increased by a new share issue to Lemarne Corporation Limited of    
230,743 shares, with the market value of EUR 2.8 million.                       

Total depreciation of non-current assets during the year under review amounted  
to EUR 4.6 (3.6) million. Goodwill is not amortized under IFRS. According to    
impairment tests that have been performed, write-downs were made amounting to   
EUR 1.1 million in the Sport Division. Additionally other operating expenses    
include 1.5 million write-offs in fixed assets relating to the Sport Division.  

PERSONNEL                                                                       

The number of Exel Group employees on 31 December 2006 was 555 (466), of whom   
237 (315) worked in Finland and 318 (151) in other countries. The average number
of personnel during the financial year was 600 (467). The increase over the     
previous year was due to the acquisition of Pacific Composites.                 

The restructuring of the Sport Division led to the termination of 57 permanent  
employment contracts in Finland. Of this, 25 persons were eligible for various  
retirement plans. Thus, the residual amount of employment contracts to be       
terminated was 32 persons. The number of temporary employment relationships,    
which came to termination at the end of their duration, was approximately 20    
persons. In addition, 11 full-time jobs were discontinued at the German company.
As a result of the transfer of the Clacton operations in the UK to Runcorn and  
other Group sites, 25 full-time jobs were discontinued.                         

BUSINESS SEGMENTS                                                               

Group operations are divided into two primary business segments represented by  
the Industry Division and Sport Division.                                       

Industry Division                                                               

Key figures for the Industry Division for the reporting period were as follows: 

--------------------------------------------------------------------------------
|                   | 1.10.- | 1.10.- | Change  | 1.1. - | 1.1. -  | Change %  |
|                   |        |        | %       |        |         |           |
--------------------------------------------------------------------------------
|                   | 31.12. | 31.12. |         | 31.12. | 31.12.  |           |
--------------------------------------------------------------------------------
| EUR million       | 2006   | 2005   |         | 2006   | 2005    |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales         | 23.4   | 15.1   | 55.5%   | 84.2   | 56.8    | 48.3%     |
--------------------------------------------------------------------------------
| Operating profit  | 3.6    | 3.2    | 12.0%   | 10.5   | 10.8    | -3.1%     |
--------------------------------------------------------------------------------
| % of net sales    | 15.5%  | 21.5%  |         | 12.4%  | 19.0%   |           |
--------------------------------------------------------------------------------
| Average number of | 405    | 241    | 68.0%   | 384    | 236     | 62.7%     |
| personnel         |        |        |         |        |         |           |
--------------------------------------------------------------------------------


Net sales for the Industry Division increased by 48.3% over the previous year to
EUR 84.2 (56.8) million. Deliveries for industrial profiles continued to be     
affected by shortage of carbon fibre. Operating profit remained almost on the   
same level, EUR 10.5 (10.8) million. Increased volumes, the acquisition of the  
Pacific Composites Group, improved efficiency and stringent cost control had a  
positive impact on the profit, but non-recurring items amounting to EUR 1.8     
million decreased the profitability.                                            

Through the acquisition of Pacific Composites, Exel established itself as the   
world's first truly international pultrusion company. The acquisition extended  
the product range and reinforced Exel's leading position in the Pacific Rim/Far 
East. New commercial applications include for example profiles for aerospace    
applications. Exel can now serve its international customers globally. The      
acquisition has accelerated the entry into the Chinese market and Exel could    
terminate its own plans for building a new factory in southern China. The       
integration of Pacific Composites was completed in all essential aspects.       

Sport Division                                                                  

Key figures for the Sport Division for the reporting period were as follows:    


--------------------------------------------------------------------------------
|                 | 1.10.- | 1.10.- | Change % | 1.1. - | 1.1. -   | Change %  |
--------------------------------------------------------------------------------
|                 | 31.12. | 31.12. |          | 31.12. | 31.12.   |           |
--------------------------------------------------------------------------------
| EUR million     | 2006   | 2005   |          | 2006   | 2005     |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales       | 6.9    | 6.9    | 0.7%     | 28.2   | 34.5     | -18.3%    |
--------------------------------------------------------------------------------
| Operating       | -3.0   | -1.1   | 179.9%   | -10.1  | 1.6      | -738.9%   |
| profit          |        |        |          |        |          |           |
--------------------------------------------------------------------------------
| % of net sales  | -43.1% | -15.5% |          | -35.8% | 4.6%     |           |
--------------------------------------------------------------------------------
| Average number  | 131    | 228    | -42.5%   | 195    | 231      | -15.6%    |
| of personnel    |        |        |          |        |          |           |
--------------------------------------------------------------------------------


The development of the Sport Division was not satisfactory in 2006. Sales       
declined and the operating results dropped sharply. Net sales decreased 18.3% to
EUR 28.2 (34.5) and the division made a loss of EUR 10.1 million, including     
non-recurring costs of -4.9 million. The Nordic Walking markets weakened and    
competition intensified in the German-speaking markets. Exel invested heavily in
opening new markets, particularly in North America, China and Japan alongside   
work to strengthen the organization and develop the Nordic Fitness SportsTM     
concept. These efforts, however, did not offset the decrease in sales in        
traditional markets.                                                            

The cost structure of the Sport Division was in 2006 too heavy in relation to   
the level of net sales. Measures aimed at restoring profitability were taken    
throughout the year. The transfer of surface treatment, assembly and packaging  
operations for Nordic Walking and floorball products to China was completed to a
large extent by the end of the year. Moreover, the marketing, sales and         
logistics costs of the Sport Division in Finland, Germany and the USA were      
adjusted to the present sales volumes. The warehousing and delivery operations  
of Exel Sports were outsourced to a service provider at the end of August. These
restructuring measures had a negative impact on the delivery performance and    
profitability during the last quarter.                                          

Floorball operations have developed strongly with new products and strengthened 
marketing efforts. Exel was the main sponsor of the 2006 Floorball World        
Championships.                                                                  

The market for OEM products was stable. Sales of laminates have increased over  
the previous year, and new industrial applications are being developed.         

SHARES AND SHARE CAPITAL                                                        

Exel's share is listed in the Mid Cap segment of the OMX Exchange's Nordic list 
in the Materials sector.                                                        

The Annual General Meeting of Exel Oyj held on 6 April 2006 approved the Board's
proposal to distribute a dividend of EUR 0.40 per share, representing a total of
EUR 4.7 million for the financial year 2005.                                    

The AGM authorized the Board of Directors to increase the share capital by a    
maximum of EUR 100,000, to acquire the company's own shares representing no more
than 5% of the Company's total share capital, and to convey the company's own   
shares.                                                                         

Exel's share capital has increased during the year due to a subscription by     
Lemarne Corporation Ltd by EUR 41,533 and subscriptions made under the warrant  
programme by EUR 30,096 to EUR 2,141,431 and the number of shares registered in 
the Trade Register has increased to 11,896,843 each having the counter-book     
value of EUR 0.18. There is only one class of shares, and all shares are freely 
assignable under Finnish law.                                                   

During the financial year the highest share price quoted was EUR 15.13 (14.80)  
and the lowest EUR 10.50 (11.35). At the end of the year, the share price was   
EUR 13.60 (13.05). The average share price during the financial year was EUR    
12.86 (12.73).                                                                  

A total of 5,172,938 (4,114,242) shares were traded during the year, which      
represents 43.5% (35.7%) of the average number of shares. On 31 December 2006,  
Exel's market capitalisation was EUR 161.8 (150.1) million.                     

SHAREHOLDERS AND DISCLOSURES                                                    

On 31 December 2006, 3.7% of the shares and votes of Exel were owned or         
controlled, directly or indirectly, by the President and the members of the     
Board.                                                                          

Exel's largest shareholder is the Swedish investment company Nordstjernan AB,   
which owned 29.4% of shares at the end of 2006. Other major shareholders        
included Ilmarinen Mutual Pension Insurance Company (6.8%) and Varma Mutual     
Pension Insurance Company (4.3%).                                               

At the end of 2006 the company had a total of 2,197 (2,967) shareholders. During
the year under review, Exel received no disclosures under Chapter 2, section 9  
of the Securities Market Act.                                                   

CORPORATE GOVERNANCE                                                            

Exel complies with the general insider trading guidelines issued by the Helsinki
Stock Exchange on 1 January 2006, as well with official regulations related to  
the governance of public joint stock companies. Exel's corporate governance     
principles are available on the company website at www.exel.net.                

MANAGEMENT AND AUDITORS                                                         

On 6 April 2006 the Annual General Meeting appointed Kari Haavisto, Peter       
Hofvenstam, Vesa Kainu, Esa Karppinen and Ove Mattsson to continue on the Board 
of Directors. Ove Mattsson was re-elected Chairman of the Board. Torgny Eriksson
and Matti Virtaala resigned from the Board at the Annual General Meeting.       

The Board of Directors appointed Göran Jönsson (M.Sc., Econ.) as Chief Executive
Officer of the Exel Group as of 20 November 2006. He succeeded Ari Jokelainen.  

PricewaterhouseCoopers Oy, Authorised Public Accountants, with Christian        
Savtschenko-Alexandroff, APA, as principal auditor, and Johan Kronberg, APA,    
served as company auditors.                                                     

EVENTS AFTER THE FINANCIAL YEAR                                                 

In January 2007 Exel Sports Oy's Managing Director Mika Sulin announced his     
resignation. Aki Karihtala, Senior Vice President of Exel's Sport Division, was 
appointed Exel Sports' Managing Director as of 1 March 2007.                    

BOARD PROPOSAL FOR DIVIDEND DISTRIBUTION                                        

Exel's strategic goals include distributing dividends equal to at least 40% of  
the profit for the financial year unless otherwise required by growth and       
liquidity.                                                                      

On 31 December 2006 the Group's distributable funds totalled EUR 15,620 thousand
and those of the parent company EUR 13,729 thousand.                            

The Board proposes to the Annual General Meeting that a dividend be paid for the
2006 financial year of EUR 0.20 (0.40) per share.                               

As a basis for its proposal, the Board of Directors has made an assessment of   
the Group's financial position and ability to meet its commitments, as well as  
the Group's outlook and investment requirements. The Board considers the        
proposed dividend well-balanced given the prospects, the capital requirements   
and the risks of the Group's business activities.                               

STRATEGIC REORIENTATION                                                         

Focus on Industry Division                                                      

Through the acquisition of Pacific Composites, Exel established itself as the   
world's first international pultrusion company. The acquisition reinforced      
Exel's Industry Division in the growing Asian markets and improved the company's
ability to serve international customers. Exel will continue to invest in its   
core industrial business and to expand operations organically and through       
acquisitions. The global pultrusion market is highly fragmented, but it is      
consolidating. Exel is in a strong position to lead this consolidation with     
bolt-on acquisitions and to reap benefit from synergies. Focusing Exel Group's  
resources on its core industrial business under a streamlined structure will    
provide a solid platform for building long-term shareholder value.              

Sports Brands business demerged into stand-alone company                        

Notwithstanding its achievements in the industrial markets, Exel has built a    
significant Sports Brands consumer goods business with sales over EUR 20        
million. Exel Sports Brands is the creator of the Nordic Walking and Nordic     
Fitness SportsTM concept. It is a leading producer of poles and floorball       
sticks.                                                                         

Exel Sports Brands is now separated from all other Exel activities. The 2006    
restructuring programme has adjusted the too heavy cost level to current sales  
in order to restore profitability of the business. Exel has also subcontracted  
all finishing, assembly and packaging operations for poles and floorball        
products to China. Exel Sports Brands has now been transformed from a technology
driven organization to a truly market oriented company. Through the extensive   
restructuring measures, the competitive position of Exel Sports Brands has been 
reinforced and the business is well positioned to pursue controlled, profitable 
growth in the sporting goods industry. However, as Exel Sports Brands is no     
longer a core activity within the Exel Group, Exel reviews different structural 
alternatives and seeks a strategic partner with a long-term interest in         
developing the Exel Sports Brands company and contributing to the positive      
development.                                                                    

OUTLOOK FOR 2007                                                                

In 2007, the Group will focus on restoring the profitability of the Exel Group. 
The focus on the primary business segment of the Group, the Industry Division,  
will be sharpened and a new business organization will be introduced. The Group 
will benefit from the acquisition of Pacific Composites and the restructuring   
measures implemented at enhancing efficiency and cutting costs. For the         
full-year 2007, Exel expects profit before taxes to improve compared to the 2006
profit before taxes and non-recurring items.                                    


CONDENSED CONSOLIDATED INCOME STATEMENT                                         
(unaudited)                                                                     

--------------------------------------------------------------------------------
|                | 1.10.-3 | 1.10.-3 | Change  | 1.1.-31. | 1.1.-31. | Change  |
|                | 1.12.   | 1.12.   | %       | 12.      | 12.      | %       |
--------------------------------------------------------------------------------
|                | 2006    | 2005    |         | 2006     | 2005     |         |
--------------------------------------------------------------------------------
| EUR thousand             |         |         |          |          |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales      | 30,361  | 21,945  | 38.4%   | 112,395  | 91,288   | 23.1%   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other          | 64      | -34     | -288.2% | 145      | 186      | -22.0%  |
| operating      |         |         |         |          |          |         |
| income         |         |         |         |          |          |         |
--------------------------------------------------------------------------------
| Operating      | -28,992 | -18,727 | -54.8%  | -106,046 | -75,502  | -40.5%  |
| expenses       |         |         |         |          |          |         |
--------------------------------------------------------------------------------
| Depreciation   | -794    | -1,015  | 21.8%   | -6,108   | -3,584   | -70.4%  |
| and impairment |         |         |         |          |          |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating      | 639     | 2,169   | -70.5%  | 386      | 12,388   | -96.9%  |
| profit         |         |         |         |          |          |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net financial  | -331    | -113    | -192.9% | -1,067   | -342     | -212.0% |
| items          |         |         |         |          |          |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before  | 307     | 2,057   | -85.1%  | -681     | 12,046   | -105.7% |
| tax            |         |         |         |          |          |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes   | -325    | -332    | 2.1     | -52      | -3,144   | 98.3%   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss    | -18     | 1,725   | -101.0% | -733     | 8,902    | -108.2% |
| for the period |         |         |         |          |          |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to:         |         |         |          |          |         |
--------------------------------------------------------------------------------
| Equity holders | -14     | 0.0     |         | -724     | 8,902    |         |
| of the parent  |         |         |         |          |          |         |
| company        |         |         |         |          |          |         |
--------------------------------------------------------------------------------
| Minority       | -4      | 0.0     |         | -10      | 0.0      |         |
| interest       |         |         |         |          |          |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per   | -0.00   | 0.15    | -100%   | -0.06    | 0.78     | -107.9% |
| share, EUR     |         |         |         |          |          |         |
--------------------------------------------------------------------------------
| Earnings per   | -0.00   | 0.14    | -100%   | -0.06    | 0.76     | -108.1% |
| share, EUR,    |         |         |         |          |          |         |
| diluted        |         |         |         |          |          |         |
--------------------------------------------------------------------------------


CONDENSED CONSOLIDATED BALANCE SHEET                                            

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                | 31.12.2006   | 31.12.2005    | Change       |
--------------------------------------------------------------------------------
| EUR thousand                                  |               |              |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS                         |              |               |              |
--------------------------------------------------------------------------------
| Non-current assets                            |               |              |
--------------------------------------------------------------------------------
| Goodwill                       | 10,107       | 3,877         | 6,230        |
--------------------------------------------------------------------------------
| Other intangible assets        | 3,158        | 880           | 2,278        |
--------------------------------------------------------------------------------
| Tangible assets                | 18,766       | 15,395        | 3,371        |
--------------------------------------------------------------------------------
| Deferred tax assets            | 2,200        | 1,070         | 1,130        |
--------------------------------------------------------------------------------
| Other non-current assets       | 76           | 103           | -27          |
--------------------------------------------------------------------------------
| Non-current assets total       | 34,307       | 21,325        | 12,982       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets                                |               |              |
--------------------------------------------------------------------------------
| Inventories                    | 19,975       | 15,361        | 4,614        |
--------------------------------------------------------------------------------
| Trade and other receivables    | 20,695       | 12,157        | 8,538        |
--------------------------------------------------------------------------------
| Other liquid assets            | 0            | 1,324         | -1,324       |
--------------------------------------------------------------------------------
| Cash at bank and in hand       | 6,199        | 4,454         | 1,745        |
--------------------------------------------------------------------------------
| Current assets total           | 46,869       | 33,295        | 13,573       |
--------------------------------------------------------------------------------
| Non-current asset held for     | 748          |               | 748          |
| sale                           |              |               |              |
--------------------------------------------------------------------------------
| Total assets                   | 81,924       | 54,621        | 27,303       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES                                        |              |
--------------------------------------------------------------------------------
| Shareholders´ equity                          |               |              |
--------------------------------------------------------------------------------
| Share capital                  | 2,141        | 2,070         | 71           |
--------------------------------------------------------------------------------
| Share issue                    | 0            | 287           | -287         |
--------------------------------------------------------------------------------
| Share premium reserve          | 8,492        | 5,142         | 3,350        |
--------------------------------------------------------------------------------
| Retained earnings              | 14,453       | 10,628        | 3,825        |
--------------------------------------------------------------------------------
| Profit for the period          | -724         | 8,902         | -9,626       |
--------------------------------------------------------------------------------
| Total equity                   | 24,363       | 27,029        | -2,667       |
--------------------------------------------------------------------------------
| Minority share                 | 0            | 11            | -11          |
--------------------------------------------------------------------------------
| Total equity                   | 24,363       | 27,040        | 2,677        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities                       |               |              |
--------------------------------------------------------------------------------
| Interest-bearing liabilities   | 25,752       | 9,611         | 16,141       |
--------------------------------------------------------------------------------
| Deferred tax liabilities       | 1,091        | 407           | 684          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities                           |               |              |
--------------------------------------------------------------------------------
| Interest-bearing liabilities   | 7,934        | 4,346         | 3,588        |
--------------------------------------------------------------------------------
| Trade and other non-current    | 22,783       | 13,217        | 9,566        |
| liabilities                    |              |               |              |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities              | 57,560       | 27,581        | 29,979       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities   | 81,924       | 54,621        | 27,303       |
--------------------------------------------------------------------------------


STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY                                    

--------------------------------------------------------------------------------
|                  | Share  | Share  | Share   | Retained | Minority | Total   |
--------------------------------------------------------------------------------
|                  | Capita | Issue  | Premium | Earnings | Interest |         |
|                  | l      |        |         |          |          |         |
--------------------------------------------------------------------------------
| EUR thousand              |        | Reserve |          |          |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at 1     | 1,932  | 817    | 3,390   | 14,553   | 0        | 20,692  |
| January 2005     |        |        |         |          |          |         |
--------------------------------------------------------------------------------
| Share issue      | 138    | -530   | 1,752   | 0        | 0        | 1,360   |
--------------------------------------------------------------------------------
| Exchange rate    | 0      | 0      | 0       | 6        | 0        | 6       |
| differences      |        |        |         |          |          |         |
--------------------------------------------------------------------------------
| Other items      | 0      | 0      | 0       | 0        | 10       | 10      |
--------------------------------------------------------------------------------
| Dividend         |        |        |         | -3,931   |          | -3,931  |
--------------------------------------------------------------------------------
| Profit for the period     |        |         | 8,902    | 0        | 8,902   |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at 31st  | 2,070  | 287    | 5,142   | 19,530   | 10       | 27,039  |
| December 2005    |        |        |         |          |          |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at 1st   | 2,070  | 287    | 5,142   | 19,530   | 10       | 27,039  |
| January 2006     |        |        |         |          |          |         |
--------------------------------------------------------------------------------
| Share issue      | 71     | -287   | 3,350   | 0        | 0        | 3,134   |
--------------------------------------------------------------------------------
| Exchange rate    | 0      | 0      | 0       | -458     | 0        | -458    |
| differences      |        |        |         |          |          |         |
--------------------------------------------------------------------------------
| Other items      | 0      | 0      | 0       | 101      | 0        | 101     |
--------------------------------------------------------------------------------
| Dividend         |        |        |         | -4,720   |          | -4,720  |
--------------------------------------------------------------------------------
| Profit for the period     |        |         | -724     | -10      | -733    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at 31st  | 2,141  | 0      | 8,492   | 13,729   | 0        | 24,363  |
| December 2006    |        |        |         |          |          |         |
--------------------------------------------------------------------------------



CONDENSED CONSOLIDATED CASH FLOW STATEMENT                                      

--------------------------------------------------------------------------------
|                                       | 1.1.-31.12 | 1.1.-31.12 | Change     |
|                                       | .          | .          |            |
--------------------------------------------------------------------------------
|                                       | 2006       | 2005       |            |
--------------------------------------------------------------------------------
| EUR thousand                                       |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operating activities                                          |
--------------------------------------------------------------------------------
| Profit for the period                 | -733       | 8,902      | -9,635     |
--------------------------------------------------------------------------------
| Adjustments                           | 9,330      | 6,935      | 2,395      |
--------------------------------------------------------------------------------
| Change in working capital             | 245        | -2,760     | 3,005      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow generated by operations     | 8,842      | 13,077     | -4,235     |
--------------------------------------------------------------------------------
| Interest paid                         | -998       | -407       | -591       |
--------------------------------------------------------------------------------
| Interest received                     | 195        | 59         | 136        |
--------------------------------------------------------------------------------
| Other financial items                 | 8          | 12         | -4         |
--------------------------------------------------------------------------------
| Income taxes paid                     | -2,819     | -4,823     | 2,004      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash flow from operating          | 5,228      | 7,918      | -2,690     |
| activities                            |            |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities                                          |
--------------------------------------------------------------------------------
| Acquisitions                          | -18,279    | -2,056     | -16,223    |
--------------------------------------------------------------------------------
| Capital expenditure                   | -2,655     | -2,377     | -278       |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed assets    | 0          | 62         | -62        |
--------------------------------------------------------------------------------
| Cash flow from investing activities   | -20,934    | -4,371     | -16,563    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing                                        |            |
--------------------------------------------------------------------------------
| Share issue                           | 3,134      | 1,360      | 1,774      |
--------------------------------------------------------------------------------
| Proceeds from long-term borrowings    | 18,000     | 2,000      | 16,000     |
--------------------------------------------------------------------------------
| Installments of long-term borrowings  | -1,991     | -2,011     | 20         |
--------------------------------------------------------------------------------
| Change in short-term loans            | 2,079      | -30        | 2,109      |
--------------------------------------------------------------------------------
| Installments of finance lease         | -375       | -307       | -68        |
| liabilities                           |            |            |            |
--------------------------------------------------------------------------------
| Dividends paid                        | -4,720     | -3,931     | -789       |
--------------------------------------------------------------------------------
| Net cash flow from financing          | 16,127     | -2,919     | 19,046     |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid funds                | 421        | 628        | -207       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds in the beginning of      | 5,778      | 5,150      | 628        |
| period                                |            |            |            |
--------------------------------------------------------------------------------
| Change in liquid funds                | 421        | 628        | -207       |
--------------------------------------------------------------------------------
| Liquid funds at the end of period     | 6,199      | 5,778      | 421        |
--------------------------------------------------------------------------------


QUARTERLY KEY FIGURES                                                           

--------------------------------------------------------------------------------
|               | IV/  | III/  | II/  | I/    | IV/   | III/   | II/   | I/    |
|               | 2006 | 2006  | 2006 | 2006  | 2005  | 2005   | 2005  | 2005  |
--------------------------------------------------------------------------------
| EUR thousand         |       |      |       |       |        |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales by segment         |      |       |       |        |       |       |
--------------------------------------------------------------------------------
| Industry      | 2343 | 22062 | 2138 | 17315 | 15072 | 13755  | 15459 | 12509 |
|               | 7    |       | 8    |       |       |        |       |       |
--------------------------------------------------------------------------------
| Sport         | 6924 | 6466  | 6519 | 8285  | 6875  | 8647   | 9744  | 9229  |
--------------------------------------------------------------------------------
| Net sales,    | 3036 | 28527 | 2790 | 25600 | 21947 | 22402  | 25203 | 21738 |
| total         | 1    |       | 7    |       |       |        |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit by segment  |      |       |       |        |       |       |
--------------------------------------------------------------------------------
| Industry      | 3623 | 2819  | 1323 | 2713  | 3235  | 2484   | 3271  | 1818  |
--------------------------------------------------------------------------------
| Sport         | -298 | -3840 | -115 | -2111 | -1066 | 525    | 1735  | 386   |
|               | 4    |       | 7    |       |       |        |       |       |
--------------------------------------------------------------------------------
| Operating     | 639  | -1020 | 164  | 603   | 2169  | 3009   | 5006  | 2204  |
| profit, total |      |       |      |       |       |        |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net financial | -331 | -258  | -327 | -151  | -112  | -60    | -112  | -58   |
| items         |      |       |      |       |       |        |       |       |
--------------------------------------------------------------------------------
| Profit before | 307  | -1278 | -162 | 452   | 2057  | 2949   | 4894  | 2146  |
| taxes         |      |       |      |       |       |        |       |       |
--------------------------------------------------------------------------------
| Income taxes  | -325 | 258   | 144  | -129  | -332  | -878   | -1332 | -602  |
--------------------------------------------------------------------------------
| Profit for    | -18  | -1020 | -18  | 323   | 1725  | 2071   | 3562  | 1544  |
| the period    |      |       |      |       |       |        |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per  | -0.0 | -0.09 | 0.00 | 0.03  | 0.15  | 0.18   | 0.32  | 0.14  |
| share, EUR    | 0    |       |      |       |       |        |       |       |
--------------------------------------------------------------------------------
| Earnings per  | -0.0 | -0.09 | 0.00 | 0.03  | 0.14  | 0.17   | 0.31  | 0.13  |
| share, EUR,   | 0    |       |      |       |       |        |       |       |
| diluted       |      |       |      |       |       |        |       |       |
--------------------------------------------------------------------------------
| Average number of shares     |      |       |       |        |       |       |
--------------------------------------------------------------------------------
| undiluted,    | 1189 | 11897 | 1187 | 11652 | 11521 | 11302  | 11230 | 11230 |
| 1000 shares   | 7    |       | 3    |       |       |        |       |       |
--------------------------------------------------------------------------------
| Average number of shares     |      |       |       |        |       |       |
--------------------------------------------------------------------------------
| diluted, 1000 | 1189 | 11897 | 1187 | 11896 | 11611 | 11574  | 11393 | 11524 |
| shares        | 7    |       | 3    |       |       |        |       |       |
--------------------------------------------------------------------------------
| Average       | 556  | 644   | 652  | 518   | 469   | 498    | 485   | 417   |
| number of     |      |       |      |       |       |        |       |       |
| personnel     |      |       |      |       |       |        |       |       |
--------------------------------------------------------------------------------


COMMITMENTS AND CONTINGENCIES                                                   

--------------------------------------------------------------------------------
| EUR thousand                    | 31.12.2006          | 31.12.2005           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| On own behalf                                         |                      |
--------------------------------------------------------------------------------
| Mortgages                       | 2,953               | 2,953                |
--------------------------------------------------------------------------------
| Corporate mortgages             | 12,500              | 12,500               |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other lease liabilities                                                      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|   -  in next 12 months          | 850                 | 216                  |
--------------------------------------------------------------------------------
|   -  in next 1-5 years          | 2,565               | 263                  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other commitments               | 191                 | 66                   |
--------------------------------------------------------------------------------


DERIVATIVE FINANCIAL INSTRUMENTS                                                

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominal values                        | 31.12.2006        | 31.12.2005       |
--------------------------------------------------------------------------------
| EUR thousand                                              |                  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign exchange derivatives                                                 |
--------------------------------------------------------------------------------
| Forward contracts                     | 8,269             | 0                |
--------------------------------------------------------------------------------
| Purchased currency options            | 3,086             | 0                |
--------------------------------------------------------------------------------
| Sold currency options                 | 1,922             | 0                |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate derivatives                                                    |
--------------------------------------------------------------------------------
| Interest rate swaps                   | 860               | 1,748            |
--------------------------------------------------------------------------------
| Purchased interest rate options       | 4,667             | 0                |
--------------------------------------------------------------------------------


CONSOLIDATED KEY FIGURES                                                        

--------------------------------------------------------------------------------
|                                   | 1.1.-31.12.  | 1.1.-31.12. | Change %    |
--------------------------------------------------------------------------------
| EUR thousand                      | 2006         | 2005        |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales                         | 112,395      | 91,288      | 23.1%       |
--------------------------------------------------------------------------------
| Operating profit                  | 386          | 12,388      | -96.9%      |
--------------------------------------------------------------------------------
| % of net sales                    | 0.3%         | 13.6%       |             |
--------------------------------------------------------------------------------
| Profit before tax                 | -681         | 12,046      | -105.7%     |
--------------------------------------------------------------------------------
| % of net sales                    | -0.6%        | 13.2%       |             |
--------------------------------------------------------------------------------
| Profit for the period             | -733         | 8,902       | -108.2%     |
--------------------------------------------------------------------------------
| % of net sales                    | -0.7%        | 9.8%        |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders´ equity              | 24,363       | 27,029      | -9.9%       |
--------------------------------------------------------------------------------
| Interest-bearing liabilities      | 33,687       | 13,957      | 141.4%      |
--------------------------------------------------------------------------------
| Cash and cash equivalents         | 6,199        | 5,778       | 7.3%        |
--------------------------------------------------------------------------------
| Net interest-bearing liabilities  | 27,488       | 8,179       | 236.1%      |
--------------------------------------------------------------------------------
| Capital employed                  | 58,050       | 40,997      | 41.6%       |
--------------------------------------------------------------------------------
| Return on equity, %               | -2.9%        | 37.3%       |             |
--------------------------------------------------------------------------------
| Return on capital employed, %     | 1.2%         | 34.0%       |             |
--------------------------------------------------------------------------------
| Equity ratio, %                   | 29.9%        | 50.0%       |             |
--------------------------------------------------------------------------------
| Net gearing, %                    | 112.8%       | 30.2%       |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure               | 19,863       | 4,119       | 382.2%      |
--------------------------------------------------------------------------------
| % of sales                        | 17.7%        | 4.5%        |             |
--------------------------------------------------------------------------------
| Research and development costs    | 2,169        | 2,323       | -6.6%       |
--------------------------------------------------------------------------------
| % of net sales                    | 1.9%         | 2.5%        |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order stock                       | 15,040       | 12,381      | 21.5%       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR           | -0.06        | 0.78        | -107.9%     |
--------------------------------------------------------------------------------
| Earnings per share, EUR, diluted  | -0.06        | 0.76        | -108.1%     |
--------------------------------------------------------------------------------
| Equity per share, EUR             | 2.05         | 2.34        | -12.4%      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of shares                                       |             |
--------------------------------------------------------------------------------
|  - cumulative                     | 11,830       | 11,359      | 4.1%        |
--------------------------------------------------------------------------------
|  - cumulative, diluted            | 11,847       | 11,550      | 2.6%        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of employees       | 600          | 467         | 28.5%       |
--------------------------------------------------------------------------------


This financial statements bulletin is unaudited and the auditors' report for the
financial statements has not been issued.                                       


ANNUAL GENERAL MEETING                                                          

The Annual General Meeting will be held on Thursday 19 April 2007 beginning at  
10.00 am in the Adams hall at Erottajankatu 15-17, Helsinki, Finland.           

FINANCIAL REPORTING IN 2007                                                     

The 2006 Annual Report will be published on the company's website and in printed
format during week 11.                                                          

The Group will issue quarterly interim reports on 25 April 2007, 25 July 2007   
and 30 October 2007.                                                            

PRESS CONFERENCE                                                                

Exel will hold a press conference regarding the financial statements today      
Thursday 22 February 2007 for the media and analysts at 12.30 am in the Pavilion
Cabinet of the Scandic Hotel Simonkenttä at Simonkatu 9, Helsinki, Finland.     


Vantaa, 22 February 2007                                                        


EXEL OYJ				Göran Jönsson                                                       
Board of Directors		President & CEO                                             


Further information:                                                            
Göran Jönsson, President, tel. +46 708 43 0110, or email goran.jonsson@exel.fi  
Ilkka Silvanto, CFO and Administrative Director, tel. +358 50 598 9553, or email
ilkka.silvanto@exel.fi                                                          


DISTRIBUTION                                                                    
Helsinki Stock Exchange                                                         
Main news media                                                                 
www.exel.net                                                                    


EXEL IN BRIEF                                                                   
Exel Oyj is a leading, international Group specialised in composite technology, 
with a special focus on pultrusion, pull-winding and continuous lamination. The 
Group's operations include design, manufacturing and marketing of advanced      
composite products for industrial applications and consumer goods. Exel's most  
well-known consumer products include cross-country, alpine and Nordic Walking   
poles, floorball sticks, antenna radomes and other industrial applications. In  
2006 the Group's net sales totalled EUR 112 million. Exel personnel averages    
550. Exel's share is listed in the Mid Cap segment of the OMX Exchange's Nordic 
list.

About Us

Exel Composites (www.exelcomposites.com) is a leading composite technology company that designs, manufactures and markets composite products and solutions for demanding applications. Exel Composites provides superior customer experience through continuous innovation, world-class operations and long-term partnerships. The core of the operations is based on own, internally developed composite technology, product range based on it and strong market position in selected segments with a strong quality and brand image. Profitable growth is pursued by a relentless search for new applications and development in co-operation with customers. The personnel’s expertise and high level of technology play a major role in Exel Composites’ operations. Exel Composites Plc share is listed in Nasdaq Helsinki Ltd.

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