Exel to establish a factory in China

EXEL OYJ STOCK EXCHANGE RELEASE 24.2.2005 at 13.05 EXEL TO ESTABLISH A FACTORY IN CHINA The project planning for establishing a factory in China has been finalized, and Exel has today decided to establish a factory in Shenzhen in China. The surface area of the new factory will be some 5,000 square metres. Exel will have the facilities built up and will rent them with a long-term lease agreement. Main production equipment will be shipped from Europe. The factory is estimated to be in full operation in the first part of 2006. The undertaking is not estimated to have a major impact on personnel at short-term in the Group’s production plants in Europe. The need for a production facility in China has become clear as several customers of the Industry division are moving their production from Europe to the Far East. Exel is committed to being a global supplier for its main customers, and as a result, is ready to serve its customers also outside Europe. During the first operating years the factory’s main products will consist of different kinds of industrial profiles both for the Chinese market and markets outside China. In addition to industrial products also the manufacture of some of Sport division’s products will be located in the factory in question in the long run. The Chinese factory will also be involved in the sourcing of new raw material and components suppliers in the Far East. After the completion of the investment Exel will have two operating companies in China; in addition to the above-mentioned factory Exel announced at the end of 2004 that a marketing and sales company will be established for the Chinese market with the government-run China Institute of Sports Science research institute. The application process of the sales company is expected to be completed in spring 2005. The Far East will be increasingly significant, both as a new market area and as a production location of Exel’s present customers. By becoming established in China Exel strives to strengthen its market share in the new market area in question and its competitiveness globally. Mäntyharju, 24 February 2005 Ari Jokelainen President & CEO Further information: Mr. Ari Jokelainen, President, Exel Oyj, tel. +358 50 590 6750 Mr. Vesa Korpimies, Executive Vice President, Exel Oyj, tel. +358 50 590 6754 www.exel.net 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 2004 the Group’s net sales totalled EUR 83.9 million. Exel personnel numbers 450. Exel’s share is listed on Helsinki Exchanges Main List.