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Exel's financial prospects weakened, sales of Nordic Walking products in Central Europe remain quiet

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EXEL OYJ          STOCK EXCHANGE RELEASE     4.7.2006 at 14.00 1 (2)


EXEL’S FINANCIAL PROSPECTS WEAKENED, SALES OF NORDIC WALKING PRODUCTS
IN CENTRAL EUROPE REMAIN QUIET

According to preliminary information Exel Oyj’s divisional second
quarter and half year sales were the following:

                  1.4.-     1.4.-   Change   1.1.-    1.1.-    Change
                  30.6.     30.6.            30.6.    30.6.
Million euros     2006       2005   2006/05  2006     2005     2006/05

Industry          20.5     15.5     +32%     38.8     28.0     +38.6
Sport             6.4      9.7      -34%     14.7     19.0     -23%

Group total       26.9     25.2      +7%     53.5     46.9     +14%

Exel Oyj’s financial prospects for 2006 will fall short of forecasts
due to weak sales of Nordic Walking products in Central Europe. This
is due to longer than expected reduction of stock levels of retail
chains. Total demand of the markets in question is expected to be on a
clearly lower level than in the previous year. As a result, Exel’s
Sport Division’s sales in the second quarter fell clearly short of the
previous year. However, the retail chains are in the future expected
to focus on the leading pole brands, including Exel.

The Industry Division’s sales in the second quarter continued to show
strong growth.

As a result of the Industry Division’s organic growth and growth
brought along with Pacific Composites, the Group’s sales on an annual
level are expected to grow noticeably on the previous year. Due to the
lower demand on the Nordic Walking markets and non-recurring costs,
mainly related to the Sport Division, the pre-tax profit is expected
to be clearly lower than in 2005.

Exel will publish its interim report for the second quarter on 26 July
2006 at 11 am.


Vantaa, 4 July 2006

EXEL OYJ

Board of Directors


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

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
                                                               2 (2)
consumer products include cross-country, alpine and Nordic Walking
poles, antenna radomes and other industrial applications. In 2005 the
Group’s net sales totalled EUR 91 million. Exel personnel averages
600. Exel’s share is listed on Helsinki Stock Exchange’s Main List.
Further information: www.exel.net.

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