Co-determination negotiations concluded in the Finnish units of the Exel Group

EXEL COMPOSITES OYJ STOCK EXCHANGE RELEASE 31.7.2009 at 13.00 CO-DETERMINATION NEGOTIATIONS CONCLUDED IN THE FINNISH UNITS OF THE EXEL GROUP The co-determination negotiations concerning the Exel Group’s Finnish units were concluded on 31 July 2009. The negotiations were based on the employer’s negotiation proposal. It was estimated that a maximum of 34 employment contracts of non-salaried employees and 14 employment contracts of salaried employees be terminated. As a result of negotiations, the amount of permanent employment contracts to be terminated is 19. Of this, possibilities for various retirement plans or part-time employment contracts will be investigated for 7 persons. From contracts to be terminated, 11 are for non-salaried employees and 8 for salaried employees. The terminated contracts of non-salaried employees concern the Group’s Kivara factory. The employment contracts of salaried employees to be terminated concern all the Finnish units of the Group. In addition, 7 temporary employment contracts for non-salaried employees and 1 for salaried employees come to termination at the end of their duration. Furthermore, the job descriptions, tasks and essential terms of the employment contracts of both non-salaried and salaried employees will be altered to correspond to the new situation when necessary. In addition, Exel issues a warning of temporary layoffs covering all the employees of the Finnish units, which will be adjusted in accordance with the negotiation proposal. The warning of temporary layoffs is valid until the end of 2010. Significant personnel reductions will take place by the end of 2009. Thus, the measures taken are expected to have an effect on the Group’s financial situation only in 2010. The development of the market situation is monitored at all times, and if necessary, measures will be taken rapidly. After the layoffs the Group’s Finnish units employ 178 persons. Vantaa, 31 July 2009 EXEL COMPOSITES PLC Vesa Korpimies President and CEO FURTHER INFORMATION: Vesa Korpimies, President and CEO, Exel Composites Plc, tel. +358 50 590 6754, or email vesa.korpimies@exel.net Ilkka Silvanto, CFO, Exel Composites Plc, tel. +358 50 598 9553, or email ilkka.silvanto@exel.fi DISTRIBUTION NASDAQ OMX Helsinki Ltd. Main news media www.exelcomposites.com EXEL COMPOSITES IN BRIEF Exel Composites (www.exelcomposites.com) is a technology company which designs, manufactures and markets composite profiles and tubes for industrial applications. The Group is the leading composite profile manufacturer in the world and concentrates on growing niche segments. The core of the operations is based on own, internally developed composite technology, product range based on it and a strong market position in selected segments with a strong quality and brand image. Profitable growth is pursued by a relentless search for new applications and development in co-operation with customers. The personnel’s expertise and high level of technology play a major role in Exel Composites’ operations. Exel Composites Plc share is listed in the Small Cap segment of NASDAQ OMX Helsinki Ltd.