Componenta seeks annulment of the false and illegal decision

Componenta Corporation Stock Exchange Release 30.12.2005 at 11.00

Componenta seeks annulment of the false and illegal decision

Componenta Corporation has today filed an application for annulment
to the Court of First Instance of the European Communities ("CFI")
concerning the Commission's decision of 20 October 2005 on the
purported state aid to Componenta Corporation. In its application
Componenta Corporation seeks annulment of the Commission's false and
illegal decision. Furthermore, Componenta Corporation requests the
CFI to suspend the enforcement of the Commission's false decision
until the application for annulment has been finally decided on.

Componenta Corporation considers that the Commission has committed a
material procedural error and abused its power of discretion during
its investigations. Moreover, the Commission's decision is in
contradiction with the state aid rules and the principle of
proportionality as provided in the EC Treaty.

Commission finds in its decision that the City of Karkkila would
have assigned unlawful state aid to Componenta Corporation the
amount of EUR 2.4 million in connection with a share purchase
transaction in 2003, whereby the City of Karkkila purchased 50% of
the shares in Karkkilan Keskustakiinteistöt Oy from Componenta
Corporation.

At the time of the transaction Karkkilan Keskustakiinteistöt Oy
owned approximately 730,000 square metre of land in the City of
Karkkila and its only liabilities consisted of two interest-free
loans (in total EUR 3.4 million) from the City of Karkkila and
Componenta Corporation. The market value of the company's assets was
approximately EUR 5 million at the time of the transaction.

However, the Commission arrives in its decision to a conclusion that
neither the shares in Karkkilan Keskustakiinteistöt Oy nor the
interest-free loans from the City of Karkkila and Componenta Corporation
would have had any monetary value at the time of the transaction.
The Commission's decision means de facto that the value of the
company's real estate assets (730,000 square metre of land) would
have been zero, and that Componenta Corporation would have had to
assign its title to these assets to the City of Karkkila for free in
order for the Commission to consider the transaction as market based.

The outcome of the Commission's decision is inconceivable,
unreasonable and clearly illegal.

This view is strongly supported by the external expert opinions from
D.Sc. (Econ.) Juha-Pekka Kallunki and an independent real estate
valuer, Kiinteistötaito Peltola & Pulkkanen Ltd, which Componenta
Corporation has submitted to the CFI in connection with its
application of today. The said expert opinions prove unambiguously
that Componenta Corporation has not received any recoverable aid
from any party. The Commission's decision is therefore false and
illegal.

Helsinki, 30 December 2005

COMPONENTA CORPORATION

Heikki Lehtonen
President and CEO


FURTHER INFORMATION: Heikki Lehtonen, President and CEO, 
tel. +358 10 403 00