Exel's financial prospects weakened, sales of Nordic Walking products in Central Europe remain quiet

EXEL OYJ STOCK EXCHANGE RELEASE 4.7.2006 at 14.00 1 (2) EXEL’S FINANCIAL PROSPECTS WEAKENED, SALES OF NORDIC WALKING PRODUCTS IN CENTRAL EUROPE REMAIN QUIET According to preliminary information Exel Oyj’s divisional second quarter and half year sales were the following: 1.4.- 1.4.- Change 1.1.- 1.1.- Change 30.6. 30.6. 30.6. 30.6. Million euros 2006 2005 2006/05 2006 2005 2006/05 Industry 20.5 15.5 +32% 38.8 28.0 +38.6 Sport 6.4 9.7 -34% 14.7 19.0 -23% Group total 26.9 25.2 +7% 53.5 46.9 +14% Exel Oyj’s financial prospects for 2006 will fall short of forecasts due to weak sales of Nordic Walking products in Central Europe. This is due to longer than expected reduction of stock levels of retail chains. Total demand of the markets in question is expected to be on a clearly lower level than in the previous year. As a result, Exel’s Sport Division’s sales in the second quarter fell clearly short of the previous year. However, the retail chains are in the future expected to focus on the leading pole brands, including Exel. The Industry Division’s sales in the second quarter continued to show strong growth. As a result of the Industry Division’s organic growth and growth brought along with Pacific Composites, the Group’s sales on an annual level are expected to grow noticeably on the previous year. Due to the lower demand on the Nordic Walking markets and non-recurring costs, mainly related to the Sport Division, the pre-tax profit is expected to be clearly lower than in 2005. Exel will publish its interim report for the second quarter on 26 July 2006 at 11 am. Vantaa, 4 July 2006 EXEL OYJ Board of Directors Further information: Ari Jokelainen, President & CEO, Exel Oyj, tel. +358 50 590 6750 Exel Oyj is a leading, international Group specialised in composite technology, with a special focus on pultrusion, pull-winding and continuous lamination. The Group’s operations include design, manufacturing and marketing of advanced composite products for industrial applications and consumer goods. Exel’s most well-known consumer products include cross-country, alpine and Nordic Walking poles, antenna radomes and other industrial applications. In 2005 the Group’s net sales totalled EUR 91 million. Exel personnel averages 600. Exel’s share is listed on Helsinki Stock Exchange’s Main List. Further information: www.exel.net.