Co-determination negotiations started at Exel Sports Oy and Exel Sports Sweden AB. Temporary layoffs at Mäntyharju factory

EXEL OYJ STOCK EXCHANGE RELEASE 30.10.2008 at 11.00

CO-DETERMINATION NEGOTIATIONS STARTED AT EXEL SPORTS OY AND EXEL SPORTS SWEDEN AB. TEMPORARY LAY-OFFS AT MÄNTYHARJU FACTORY.

Exel continues measures to improve its profitability and efficiency.

Co-determination negotiations will be started at Exel Oyj’s Finnish subsidiary Exel Sports Oy and at its Swedish subsidiary Exel Sports Sweden AB (formerly International Gateway AB) to improve their efficiency and to conclude the structural change.

The co-determination negotiations concern Exel Sports Oy’s personnel as a whole both in Finland and in Sweden. At present Exel Sports Oy employs 12 persons and Exel Sports Sweden AB 5 persons. The target of the negotiations is to find an optimal solution to strengthen the Floorball operations’ competitiveness and market position. The aim is to conclude the negotiations during week 47.

”We will improve and adjust our operations to better correspond with the present market and competition situation. We expect to achieve necessary savings for example by eliminating overlapping operations and restructuring the organization”, Mr. Vesa Korpimies, Exel Oyj’s President and CEO, says.

In addition, the operations of the Mäntyharju factory, which is a part of Exel Composites, will be adjusted to correspond e.g. to the demand in the laminates operations. According to a stock exchange release published on 22 February, 2008 Exel gave non-salaried employees a notice of a temporary layoff. The notice affects 12 non-salaried employees. The notice took effect on 1 March, 2008 and ends on 28 February, 2009 at the latest. According to the notice a maximum of 12 non-salaried employees of the Mäntyharju factory will be laid off temporarily until 28 February, 2009. The layoffs start on 13 November, 2008. Altogether the Mäntyharju factory’s staff consists of 59 persons.


Vantaa, 30 October, 2008


EXEL OYJ

Vesa Korpimies
President and CEO


Further information:
Vesa Korpimies, President and CEO, tel. +358 50 590 6754, or email vesa.korpimies@exel.net

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Exel is a technology company which designs, manufactures and markets composite profiles and tubes for industrial applications and sports equipment.

The personnel´s expertise and high level of technology play a major role in Exel´s operations. The core of the operations is based on proprietary, internally developed composite technology, product range based on it and the domination of selected market segments with a strong quality and brand image. The Company´s growth is based on permanent search of new applications and development in co-operation with customers. Exel concentrates on niche segments and on profitable growth. Exel’s share is listed in the Small Cap segment of the NASDAQ OMX Helsinki Ltd.