EXEL'S SPORT DIVISIONS RESTRUCTURING MEASURES CONTINUE

EXEL OYJ STOCK EXCHANGE RELEASE 24.8.2006 AT 9.45 1 (2) EXEL’S SPORT DIVISION’S RESTRUCTURING MEASURES CONTINUE As announced earlier, the demand for the Sport Division’s consumer products is weak in Germany. New markets cannot compensate the low demand situation. As a result, restructuring measures aimed at cutting costs will be initiated promptly. The sales, distribution and marketing costs will be adjusted to the present market situation. Sales of the consumer products will be concentrated on core product groups, i.e. poles and floor ball and related accessories. As a result, the operations in question will be reorganized meaning that the work contribution of some 20 persons will no longer be needed. A major part of the personnel reductions concerns the Sport Division’s sales companies outside of Finland. Negotiations with the personnel will be commenced immediately. The restructuring program will incur major non-recurring costs estimated at some EUR 3-3.5 million. The sales of the Industry Division, accounting for some 75% of the total Exel Group sales, have proceeded as planned, although shortage of carbon fiber still prevails on the raw material markets. The reorganization of the factory in Belgium will continue to weaken the Industry division´s operative profit to some extent during the rest of the year. Non-recurring costs amounting to EUR 3.6 relating to the reorganization of the Sport Division, IFRS valuation items relating to the acquisition of Pacific Composites Pty. Ltd and the consolidation of the UK factories million have been recorded into the first half-year result of 2006. Thus, the total non-recurring costs in the result of 2006 will amount totally to some EUR 6.5-7 million, out of which some EUR 1.0 million affects cash flow. Based on the above, the Group’s full year pre-tax profit after non-recurring costs is estimated to be negative. Mäntyharju 24.8.2006 Exel Oyj Board of Directors Further information: Mr. Ari Jokelainen, President & CEO, tel. +358 50 590 6750