Exel Oyj to establish a joint venture in China

EXEL OYJ STOCK EXCHANGE RELEASE 9.12.2004 at 12.15 1 (1) EXEL OYJ TO ESTABLISH A JOINT VENTURE IN CHINA Exel Oyj has today 9 December 2004 signed in Beijing, China a contract with China Institute of Sports Science regarding the establishment of a joint venture in China. Exel is among the first Western companies to apply for permission to set up a joint venture in order to import and sell in China products manufactured outside of China. The law permitting the import and sales of non-PRC (People’s Republic of China) products will come into effect on 13 December 2004. The application process is estimated to take from 3 to 4 months, and the joint venture is expected to be in full operation in spring 2005. The joint venture offers significant growth potential in a new market area to Exel’s Sport division’s products. At the beginning the objective of the joint venture is to market and sell sport products in China, mainly poles for Nordic Walking, cross-country skiing and Alpine skiing. Later the product range will possibly be expanded to other products. The analyses published earlier regarding the start-up of production in China are progressing, and decisions are expected to be made during the first quarter of 2005. More detailed information will be given in a press conference to be organized on Monday 13 December 2004 at 11 am Finnish time at Scandic Hotel Simonkenttä at Simonkatu 9, Helsinki, Finland. Mäntyharju, 9 December 2004 EXEL OYJ Ari Jokelainen President & CEO Further information: Mr. Ari Jokelainen, President, Exel Oyj, tel. +358 50 590 6750 Exel Oyj is a Finnish company specialised in composite technology. The Group’s operations consist of sporting goods and industrial applications. Exel’s best-known products include cross-country and Alpine poles, Nordic Walking poles, surfboard masts, floorball clubs and industrial profiles in general. The Group’s six factories are located in Finland, Germany, Belgium and Spain. Over 80% of production is exported. In 2003 the Group’s net sales totalled EUR 57.3 million. Exel personnel numbers 450. Exel’s share is listed on Helsinki Exchanges Main List. www.exel.net.