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EXEL OYJ CONCLUDED PERSONNEL NEGOTIATIONS

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EXEL OYJ          STOCK EXCHANGE RELEASE     22.3.2006 at 14.30  1 (1)


EXEL OYJ CONCLUDED PERSONNEL NEGOTIATIONS

Exel’s personnel negotiations that commenced on 1 February 2006 have
been concluded. The negotiations were based on operative and financial
needs of improving effectiveness of the Sport Division’s performance,
including the reorganization of the personnel and the restructuring of
the Mäntyharju factory’s operations caused by the transfer of surface
treatment, assembly and packaging operations of pole and floorball
products to China. The transfer will take place in phases throughout
the year with the aim of having all these operations handled
completely in China by the beginning of 2007.

The negotiations were based on the employer’s negotiation proposal.
The estimated personnel reduction requirement was 60-70 persons. As a
result of negotiations, the amount of employment contracts to be
terminated is 54 persons. Of this, 25 persons are eligible for various
retirement plans. Thus, the residual amount of employment contracts to
be terminated is 29 persons. From contracts to be terminated, 49 are
non-salaried for employees and 5 for salaried employees. The number of
temporary employment relationships, which come to termination at the
end of their duration, is approximately 20 persons. It has been agreed
with the personnel representatives that an extended, 6-month term of
notice instead of the normal term of notice is applicable to all
terminated contracts.  Thus, significant personnel reductions will
take place at the end of September 2006.

All in all, the reorganization of the operations including the above
mentioned personnel reorganization is estimated to cause non-recurring
costs amounting to EUR 2 million during 2006. Based on the current
sales volume it is estimated to increase the profit before taxes
annually with minimum EUR 2 million starting from 2007.


Mäntyharju, 22 March 2006

EXEL OYJ


Ari Jokelainen
President & CEO

Further information:
Ari Jokelainen, President, Exel Oyj, tel. +358 50 590 6750

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