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Componenta changes pricing cycle due to huge increase of raw material prices

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Componenta changes pricing cycle due to huge increase of raw material prices

Prices for main raw materials like recycled steel scrap and pig iron produced
from iron ore have risen more than 100 % between end of last year and June 2008.
Componenta is therefore adopting a price balancing system that updates the
effect of raw material prices on a monthly basis instead of the earlier
quarterly adjustments.

The raw material price compensation system introduced by Componenta in 2004 with
quarterly evaluation periods has proven not to be able to follow the rapid
changes fast enough. Currently the quarterly applied surcharges differ
significantly from the actual market prices. This has led to a situation where
the supplier is compensated for the rapidly increased material costs only after
a considerable delay.

Componenta has decided to balance the effect of this delay by additional
quarterly invoices or credit notes to its customers. The new system will cover
the difference between the actual market prices and the earlier system having
four month delay due to quarterly adjustments.  The new system will take care
that there are no significant differences between materials purchased and
products invoiced.  Should the material prices go down the new system will lead
to faster compensation to customers as well. The impact on Q2/2008 invoicing and
operating profit is estimated to be approximately 5 %.

The customers are separately notified of the above arrangement. 

Helsinki, 16 June 2008

COMPONENTA CORPORATION


Heikki Lehtonen
President and CEO


Further information:

Heikki Lehtonen
President and CEO
tel. +358 10 403 2200


Componenta is a metal sector company with international operations and
production plants located in Finland, Turkey, the Netherlands and Sweden. The
pro forma net sales of Componenta was EUR 635 million in 2007 and the Group
employes about 5,100 people. Componenta's shares are quoted on the OMX Nordic
Exchange in Helsinki. Componenta specializes in supplying cast and machined
components and total solutions made of them to its global customers who are
manufacturers of vehicles, machines and equipment.  
Componenta  Corporation 
Panuntie 4 
FI-00610 Helsinki , Finland
Tel. +358 10 403 00
Fax +358 10 403 2721
http://www.componenta.com

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