EXEL OYJ CONCLUDED PERSONNEL NEGOTIATIONS

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