The state of Finland has no authority for recovery

COMPONENTA CORPORATION STOCK EXCHANGE RELEASE 14.12.2005

The state of Finland has no authority for recovery

The Ministry of Trade and Industry has today issued a press release according
to which the State of Finland will initiate recovery proceedings against
Componenta Corporation on the basis of the European Commission's decision
of 20 October 2005. Componenta Corporation has requested law professor
Kaarlo Tuori from the University of Helsinki an expert opinion regarding the
possibilities available for the State of Finland to initiate recovery
proceedings against Componenta Corporation on the basis of the above-said
Commission's decision. According to professor Tuori's expert opinion,
the State of Finland has no legal means to initiate actions against
Componenta Corporation in order to recover the alleged state aid. In addition,
Professor Tuori states in his opinion that the State of Finland has no
authority to obligate the City of Karkkila to take any actions for the
recovery of the alleged state aid.

Furthermore, Componenta Corporation considers the Commission's
decision unfounded and the outcome of the decision unreasonable.

Commission finds in its decision that the City of Karkkila would have
assigned unlawful state aid to Componenta Corporation the amount of
EUR 2,400,000 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 3,400,000) from the City of Karkkila and Componenta Corporation.
The margin between the market value of the company's assets and its
current liabilities was approximately EUR 1,500,000.

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 at
a purchase price of zero Euros in order for the Commission to consider the
transaction as market-based. The outcome of the Commission's decision is
inconceivable, and the decision is obviously based on a misunderstanding.

Componenta Corporation has requested external expert opinions concerning the
Commission's decision from a leading Finnish professor on Financial Accounting,
D.sc. (Econ.) Juha-Pekka Kallunki and from an independent real estate valuer,
Kiinteistötaito Peltola & Pulkkanen Ltd. Componenta Corporation has delivered
the said opinions to the State of Finland. The opinions prove unambiguously
that the Commission's decision is unfounded.

Professor Kallunki states in his opinion that the Commission has applied an
incorrect method in assessing the value of the shares in Karkkilan
Keskustakiinteistöt Oy. Furthermore, the Commission has erred in its finding
that Componenta Corporation would have received financial aid from the City
of Karkkila in connection with the interest-free loan arrangement. In addition,
Kiinteistötaito Peltola & Pulkkanen Ltd state in their opinion that at the time
of the transaction, the value of the real estate assets in question, as
evaluated by the City of Karkkila and Componenta Corporation, was market based.

Componenta Corporation has not received any recoverable aid from the
State of Finland. The above-mentioned expert opinions prove that the
City of Karkkila cannot either be considered to have given any alleged
state aid to Componenta Corporation. The Commission's decision is therefore
unfounded. Componenta Corporation will appeal against the decision in
the Court of First Instance of the European Communities and
seek for its annulment.


Helsinki, 14 December 2005


COMPONENTA CORPORATION


Heikki Lehtonen
President and CEO


Further information:


Heikki Lehtonen
President and CEO
tel. +358 10 403 00


Kimmo Virtanen
CFO
tel. +358 10 403 00