Exel Interim Report for 1 January - 30 June 2006

EXEL OYJ STOCK EXCHANGE RELEASE 26.7.2006 at 11.00 EXEL INTERIM REPORT FOR 1 JANUARY – 30 JUNE 2006 Summary Group: - Net sales in the first six months rose to EUR 53.5 million, up 14.0 per cent on the previous year’s EUR 46.9 million - Net sales were EUR 27.9 (25.2) million in the second quarter - Operating profit in the first six months was EUR 0.8 (7.2) million. - Operating profit in the second quarter was EUR 0.2 (5.0) million or 0.6 (19.9) per cent of net sales - Non-recurring costs of EUR 2.3 million were recorded from the reorganisation of the Group’s factories in the UK and the Sport Division’s production activities in Mäntyharju as well as EUR 1.3 million of IFRS valuation items were recorded related to the acquisition of Pacific Composites - Earnings per share in the first six months were EUR 0.03 (0.45) based on the number of shares at the end of the reporting period Industry: - Industry Division reported continued growth in net sales, net sales in the first six months increased to EUR 38.7 (28.0) million, an increase of 38.4 per cent - Second quarter net sales up 38.4 per cent to EUR 21.4 (15.5) million. The growth was generated by the Pacific acquisition. - Deliveries for industrial profiles were affected by shortage of carbon fibre - Operating profit in the first six months was EUR 4.0 (5.1) million including EUR 1.7 million of non-recurring items - The integration of Pacific Composites is proceeding as planned Sport: - Sport Division’s net sales were low in the first six months, EUR 14.8 (19.0) million - Second quarter sales decreased by 33.1 per cent to EUR 6.5 (9.7) million - Nordic Walking markets in Central Europe are significantly down from the record year 2005 - Operating loss in the first six months EUR -3.3 (+2.1) million including EUR 1.9 million of non-recurring costs - Measures to improve the Sport Division’s production and logistics operations are continuing according to plan - New measures aimed at improving the profitability of the Sport Division being planned Further information: Mr. Ari Jokelainen, President, Exel Oyj, tel. +358 50 590 6750 Mr. Ilkka Silvanto, CFO, tel. +358 50 598 9553 The Interim Report can be read in its entirety in the attached PDF file.