Exel Oyj to begin co-determination negotiations at Mäntyharju factory

EXEL OYJ STOCK EXCHANGE RELEASE 4.1.2008 at 14.00

EXEL OYJ TO BEGIN CO-DETERMINATION NEGOTIATIONS AT MÄNTYHARJU FACTORY

Exel Oyj will begin co-determination negotiations at its Mäntyharju factory, which is a part of Exel’s Industry Division, to improve efficiency. Operations will be adjusted in line with, among other things, the Industry Division’s Sport and Leisure market segment’s demand at the factory in question. One of the reasons behind this is the fact that Exel Sports Oy has increased its procuring from the Far East.

Mäntyharju factory’s cost structure will have to be adjusted to the current situation. Therefore co-determination negotiations will be commenced at the factory regarding the lay-offs of a maximum of 12 non-salaried employees and temporary lay-offs of a maximum of 12 non-salaried employees as well as lay-offs of a maximum of 5 salaried employees. The aim is to conclude the negotiations during week 9.

The planned measures do not affect the other units of Exel’s Industry Division.

Vantaa, 4 January 2008

EXEL OYJ


Göran Jönsson
President & CEO


Further information:
Mr. Vesa Korpimies, Executive Vice President, 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. Exel’s operations consist of two divisions: Exel Composites, the Industry Division of Exel, and Exel Sports.

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 own, 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 Helsinki Stock Exchange’s Nordic list.