Exel will have a weak first quarter 2008

EXEL OYJ STOCK EXCHANGE RELEASE 7.4.2008 at 09.00 1 (1)

EXEL WILL HAVE A WEAK FIRST QUARTER 2008

In conjunction with the preparations of the financial report for the first quarter 2008, Exel has noticed that the preliminary outcome significantly deviates to the current market consensus’ estimates which according to Bloomberg amount to EUR 28.1 million in sales and EUR 3.4 million in operating profit. Therefore, the following statement has been disclosed.

The preliminary sales report of the Group shows EUR 24 million in sales for the first quarter compared to EUR 28.8 million for the corresponding period last year.

The weaker sales are primarily a result of a decrease in the wind energy segment and the divestment of the Plastics business in Germany for Exel Composites. Additionally, the Company is also faced with weaker market conditions in other segments, especially in building and construction. Exel Sports Brands has had sales in line with company expectations but lower than last year.

The reduction in sales and increasing price competition has a negative impact on the operating profit in Exel Composites. Additionally, the operations of Exel Sports Brands continue to suffer from a high cost level and logistical problems and it will, despite corrective actions report a significant loss in the first quarter. All-in-all, the operating profit for the Group is expected to be slightly positive for the first quarter 2008 (EUR 3.5 million in the corresponding period last year).

In the Outlook for 2008 issued in connection with the stock exchange release on February 27 it was forecasted that sales will not be higher than in 2007. Based on the outcome for the first quarter and due to the expected general slow-down in the market it is now expected that sales for the whole year will be lower than in 2007.

Exel will announce the first quarter 2008 results on May 2, 2008.


Vantaa, 7 April 2008

EXEL OYJ


Göran Jönsson
President and CEO

Further information:
Mr. Göran Jönsson, President and CEO, Exel Oyj, tel. +46 708 430 110, or email goran.jonsson@exel.fi
Mr. Ilkka Silvanto, CFO, Exel Oyj, tel 050-598 9553, or e-mail ilkka.silvanto@exel.fi